Indian textile sector is set to receive some much needed assistance in form of Amended Technology Upgradation Fund Scheme (ATUFS) . The Cabinet Committee on Economic Affairs (CCEA) approving the amended TUFS, which was originally introduced in 1999. While replacing the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), the new scheme will be implemented across two broad categories. For the sub sectors of apparel, garment and technical textiles, upto 15% subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years. The remaining sub-sectors would be eligible for subsidy at a rate of 10%, subject to a ceiling of Rs 20 crore on similar lines. Being the largest employer after agriculture and accounting of 14% of Indian exports, the scheme will provide a fillip to the sector as well as exports. However, the scheme which was introduced as capital subsidy is now catered as interest subvention.
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