Budget sets new tone for Indian Textile Industry
By Nitika Srivastava.
When he came on textiles in his fourth budget speech, Finance Minister P Chidamabaram firstly noted a fact that a rejuvenated textile industry is geared to meet the global challenge. This statement itself can boost people of this industry.
Next was the textile industry's cherished demand, Chidambaram heard in extension of the Technology Upgradation Fund Scheme (TUFS) for another five years, a decision would spur an investment of at least Rs 1,25,000 crore in the sector. ''TUFS will be continued during the 11th Plan and against a provision of Rs 535 crore in 2006-07, Rs 911 crore would be provided for TUFS in 2007-08," Chidambaram said while presenting the Union Budget 2007-08 in Parliament. Notably, TUFS, launched in 1999 to provide interest and capital subsidy for modernisation of the textile sector, was slated to expire in March 2007.
The Confederation of Indian Textile Industries (CITI) welcomed the extension, saying taking advantage of the scheme, around Rs 25,000 crore would be invested in the textile sector this year. CITI Secretary General D K Nair stated: ''The investment under TUFS has been doubling every year for the last four years and would touch Rs 25,000 crore this fiscal. After the extension, this pace of investment would continue.''
Till date, projects worth Rs 52,847 crore have been given loans under the scheme. The industry, however, felt the allocation of Rs 911 crore would be insufficient to meet the demand of the scheme. Last year's allocation had exhausted much before the end of the fiscal and the government had to give an additional Rs 313 crore for the scheme.
The minister also announced an enhanced allocation of Rs 425 crore for textile parks under the Scheme for Integrated Textile Parks (SITP). ''So far, of the 30 parks sanctioned under SITP, 26 have been approved. The provision for these parks has been increased from Rs 189 crore to Rs 425 crore in 2007-08,'' Chidambaram added.
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