The Union Textile Ministry has drafted a new Technology Upgradation Fund Scheme, which will replace the existing Amended Technology Upgradation Fund Scheme (ATUFS). “We have formulated a new scheme. We want to bring in an element of incentivising the machinery manufacturers too,” Textiles Secretary Upendra Prasad Singh said on Wednesday.
The technology upgradation fund schemes have so far supported the textile industry. The ATUFS did not include the spinning sector. The new scheme will include the spinning sector and the machinery manufacturers. The Union Budget proposes ₹ 650 crore allocation for ATUFS for 2022-23. Approval for the new scheme is expected by March and that will come with fresh allocation of funds.
Apart from the total allocation of ₹12,382.14 crore in the Budget for the textile sector, the industry will see another ₹11,000 crore benefit through the Rebate of State and Central Taxes and Levies scheme and Remission of Duties and Taxes on Exported Products scheme.
A scheme for integrated development of the silk sector —Silk Samagra II, which was approved recently, is another scheme with substantial budget allocation (₹875 crore) for next fiscal.
The Production Linked Incentive Scheme has received 69 applications so far and the last date for submission of application is Feburary 14. With the government extending concessional tax of 15% for new manufacturing units that start production before the end of March 2024, the scheme is likely to see more investments.
Textile and clothing exports for 2021-2022 will cross $40 billion as against the target of $44 billion. Though apparel exports are an area of concern, there is overall growth in exports, Mr. Singh said.
