NEW DELHI: The Ministry of Textile has proposed extension of the Technology Upgradation Fund (TUF) Scheme in the 12th Five Year Plan with an allocation of Rs 158.86 billion, as informed by the Minister of State for Textiles Panabaaka Lakshmi in a written reply to the Lok Sabha.
The minister said, "Government has enhanced allocations under Technology Upgradation Fund Scheme (TUFS) from Rs. 8,000 crore to Rs. 15,432 crore in the 11th Five Year Plan for modernization of textiles industry."
Commenting on the growth in textile exports, she said, "Textiles exports for the year 2011-12 are projected at USD 34 billion." During fiscal 2010-11, the textiles sector achieved exports of USD 26.8 billion.
Reports suggests that the restructured TUFS, introduced in 2012, would continue in the current year (2012-13).
The government has also introduced various provisions in the Foreign Trade Policy (2009-14) for offering incentives/ concessions to the Textiles & Clothing sector exports, which includes incentives for exports to focus markets and exports of focus products, extension of Duty Entitlement Passbook Scheme, interest subvention on pre-shipment credit, duty-free import of trimmings etc.