In a recent circular, Textile Commissioner had asked banks/financial institutions not to entertain any new loans for new textile projects under the TUF scheme. The TUF scheme introduced in 1999 to help modernization. While the textile units were slow in using the fund to modernize the mills, the activity picked up in 2007, but received a setback during recessionary trends. The funds of Rs.80,000 million allocated had been used up entirely and the textile ministry had approached the CCEA for enhancement. The textile industry which is capital intensive needs this fund and it will be available till 2012 as per the 11th five year plan.
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