New Delhi: The Union Cabinet on Wednesday approved the introduction of Amended Technology Upgradation Fund Scheme (ATUFS) in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) for technology upgradation of the textile industry.
The amended scheme will boost 'Make in India' in the textile sector and is expected to generate investment of Rs.1 lakh crore and create over 30 lakh jobs.
The decision was taken at the Cabinet Committee on Economic Affairs meeting, which was presided by Prime Minister Narendra Modi.
"A budget provision of Rs.17,822 crore has been approved, of which Rs.12,671 crore is for committed liabilities under the ongoing scheme, and Rs.5,151 crore is for new cases under ATUFS," a cabinet communique said.
The new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India's share in global exports.
It also aims to promote technical textiles, a sunrise sector, for export and employment and also promote conversion of existing looms to better technology looms for improvement in quality and productivity.
Encouraging better quality in processing industry and checking need for import of fabrics by the garment sector is another target.
The office of textile commissioner (TXC) is being reorganised with its offices to be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the state government agencies.
Under the new scheme, there will be two broad categories - apparel, garment and technical textiles, would get 15 percent subsidy on capital investment, subject to a ceiling of Rs.30 crore for entrepreneurs over a period of five years.
The other category is the remaining sub-sectors, who would be eligible for subsidy at a rate of 10 percent, subject to a ceiling of Rs.20 crore on similar lines.