Millennium Post

CCEA okays continuation of tech fund for Rs12k cr

The government on Thursday approved the continuation of Technology Upgradation Fund Scheme (TUFS) for the 12th Plan period (2012-17) with a budgetary allocation of Rs 11,900 crore.

It aims to generate 11.5 per cent annual growth in volume terms in cloth production, and 15 per cent in exports (value terms) by raising domestic value-addition and technological depth, said an official statement said.

It is also expected to generate additional employment of 15.81 million. The textiles industry employs 45 million people. The government had suspended TUFS in June 2010, and restored the scheme in April 2011.

'The Cabinet Committee on Economic Affairs gave its approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the financial year 2013-14,' Finance Minister P Chidambaram said.
The total budget outlay for continuation of the scheme will be about Rs 11,900 crore, of which Rs 2,400 crore has been allocated for the 2013-14 fiscal, he added.

During the 11th Plan, over Rs 15,000 crore was allocated for the scheme.In the Budget, Chidambaram had announced that TUFS would continue with a major focus on modernisation of the powerloom sector. The higher subsidies for weaving/powerloom sector have been planned in the continued scheme, the statement said.
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