The Ministry of Textiles had proposed easing out of norms under Amended Technology Upgradation fund scheme (ATUFS) during post lockdown period of Covid- 19 outbreak vide its order no. 6/5/2015-TUFS(Pt) dated 13/04/2020 .
In this regards, Office of Textile commissioner has issued a circular No: 12(1), ATUFS/Policy/2019/TUFS/Del. Of Fin Prs/dated 15/04/2020 stating modification of provision at the end of para 10.5.2 in ATUFS (revised) guidelines issued by Ministry of Textiles dated 02/08/2018.
Vide this circular, all such units (for which Joint Inspection team has recommended for release of subsidy (Capita/ Interest) amount in its report ) and are subject to scrutiny at financial approving authority are provided an option to get their subsidy released by submitting bank guarantee for equivalent amount of subsidy valid for 6 Months, extendable further if needed. The option shall be exercised by units by 25th April, 2020(6PM).
The above released subsidies shall be subject to further scrutinies, and Ministry shall forfeit the guarantee to the extent of excess subsidy granted along with applicable penal interest.
The aforesaid option can be exercised by unit by logging to ITUFS software under “ATUFS Application”
Practical problems for accepting the above option:
1. Unit has to submit the equivalent amount of bank guarantee which needs cash collateral to be given to banks for the purpose of issuing bank guarantee. For Eg: I need Bank guarantee for Rs. 50L , it needs to keep collateral in the form of fixed deposit of Rs.50L. The only benefit is that unit can earn an interest on such FD which could be never be an intention.
2. For capital subsidies, the released amount needs to be credited to our outstanding loan accounts for its repayment. This results into double blockage of funds. i.e one for bank guarantee and other one goes to repayment of term loan.
The unit should opt the above option with due calculation and in consultation with their lending agencies.
GOVERNMENT OF INDIA
MINISTRY OF TEXTILES
OFFICE OF THE TEXTILE COMMISSIONER
POST BAG NO: 11500::MUMBAI -400 020
Email: [email protected] :: Fax: 022-22004693
Wcbsite: www.ministryollextiles.gov.in
File No 12(1)/ATUFS/Policy/2019/TUFS/Del. of Fin Prs/
Dated: 17/04/2020
CIRCULAR
Sub.: Easing out implementation of the decision of IMSC under ATUFS for physical verification of machinery procured under previous versions of TUFS (MTUFS, RTUS & RRTUFS) during post lockdown period of COVID 19 outbreak- reg.
In pursuance of the Ministry of OM No.I6015/01/2019-TUFS dated 13/04/2020 relating to insertion of sub-para 2.3.5 (a) under Para 2.3.5 in the protocol issued by the Ministry of Textiles vide OM 16015/01/2019-TUFS dated 14.06.2019, all accounts extending beyond 31′ March 2021 (i.e., accounts for which subsidy claims have been filed by the banks along with necessary documents/information and where JIT has submitted the report with recommendation and are confirmed by the Regional Offices of the Textile Commissioner for release of pending Interest reimbursement/Capital Subsidy as per the committed liability but awaits scrutiny at relevant financial approving authority), may exercise their willingness in the window provided in iTUFS portal that they would like to submit Bank Guarantee (BG) to get their subsidy through bank/lending agency by 25th April 2020 (6 PM).
Based on the response from the units, forwarded online after confirmation by the Regional Offices of the Textile Commissioner by 28th April 2020, total amount of subsidy to be disbursed as per the option and overall budget availability under the scheme, a view would be taken on quantum (full or partial) of the JIT recommended subsidy to be released to the account holders through banks/lending agencies.
For such accounts, subsidy amount release will be subject to submission of BG for equal amount by the unit valid for six months, extendable further, if necessary on FIFO basis as per the date of inspection by JIT. Detailed operational guidelines on implementation of the provision will be issued separately.
(Moloy Chandan Chakrabortty)
Textile Commissioner
Download Circular dated 17/04/2020 in PDF Format
GOVERNMENT OF INDIA
MINISTRY OF TEXTILES
OFFICE OF THE TEXTILE COMMISSIONER
POST BAG NO: 11500::MUMBAI -400 020
Email: [email protected] :: Fax: 022-22004693
Wcbsite: www.ministryollextiles.gov.in
File No 12(1)/ATUFS/Policy/2019/TUFS/Del. of Fin Prs/
Dated: 15/04/2020
CIRCULAR
Subject: Easing out the norms under Amended Technology Upgradation Fund Scheme (ATUFS) during post lockdown period of COVID 19 outbreak- reg.
In pursuance of the Ministry of Textiles’ Order No. 6/5/2015-TUFS(Pt) dated 13/04/2020 relating to modification of provision at the end of Para 10.5.2 in ATUFS guidelines, all such units (for which JIT recommended release of subsidy in its report) may exercise their option in iTUFS portal that they would like to submit Bank Guarantee (BG) to get subsidy released which awaits scrutiny at relevant authority by 25th April 2020 (6 PM).
Based on the response from the units, total amount of subsidy to be disbursed as per the option and overall budget availability under the scheme, a view would be taken on quantum (full or partial) of the JIT recommended subsidy to be released to the units.
Subsidy amount so released will be subject to submission of BG for equal amount by the unit valid for six months, extendable further, if necessary, on FIFO basis as per the date of inspection by JIT. Detailed operational guidelines on implementation of the provision will be issued separately.
(Moloy Chandan Chakrabortty)
Textile Commissioner
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