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India:CCEA modifies Credit Linked Capital Subsidy in TUFS |
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2005-1-18
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The Cabinet Committee on Economic Affairs (CCEA) today modified Credit Linked Capital Subsidy (CLCS) sub-schemes of the Technology Upgradation Fund Scheme(TUFS) for raising the capital ceiling for machinery from Rs.60 lakh to Rs.One crore under 20 per cent capital subsidy scheme for the decentralized powerloom sector and for enhancing the rate of capital subsidy from 12 per cent to 15 per cent for the small scale textile and jute industries.
The former CLCS sub-scheme is applicable to powerloom segment only whereas the latter CLCS sub-scheme is applicable to small scale textiles and jute industries since these are not included in the CLCS scheme of Ministry of Small Scale Industries.
The main objective of the scheme is to provide funds for the textile industry for technology upgradation of existing units as well as to set up new units with state-of-the-art technology.
The TUF scheme was launched on April 1, 1999 and will be operational till March 31, 2007. The Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI) and Small Industries Development Bank of India (SIDBI) are the nodal agencies for providing the finance and are reimbursed the difference in interest rates by the Government by way of grants.
As on October 31, 2004, a total of 3599 applications have been received under the TUF Scheme with a project cost of Rs.25115 crore. 3361 applications with a project cost of Rs.20367 crore have been sanctioned for a loan amount of Rs.9271 crore. Rs.6281 crore have been disbursed in respect of 2816 applications having project costs of Rs.15847 crore.
Raising of the ceiling for loan and rate of subsidy would result in more powerloom and small scale units becoming eligible to avail benefits of the TUF Scheme and would also enhance their viability and competitiveness in the domestic and international markets. |
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| Press Information Bureau |
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