Textile 25-01-2022 Hits: 1723

Replacing ATUF, the new plan can have cost of Rs. 16,600 crore

Textile 25-01-2022 Hits: 1723

ATUF

Textile 25-01-2022 Hits: 1723

25 January, Mumbai: 2022

Apparel Resources revealed just two weeks ago that the Ministry of Textile (MoT) was considering launching a Textile Technology Development plan, and now there are indications that the government has started work on a new programme with a five-year budget of around Rs. 16,600 crore.

Under this system, the Ministry of Textile has offered investment and value-added-related incentives.

KEY HIGHLIGHT

MoT is considering launching a Textile Technology Development plan
The new programme is with a 5 year budget of around Rs. 16,600 crore
Support for R&D and commercialization, are likely to be included
Should focus on textile machinery mfg, assistance for technological upgrades

Incentives for technology transfer in joint ventures with foreign manufacturers, as well as support for R&D and commercialization, are likely to be included in the proposed programme.

The initiative should primarily focus on textile machinery manufacture, assistance for technological upgrades in existing clusters and MSMEs, and support for new integrated manufacturing facilities in diverse segments such as spinning, weaving, and knitting.

The Ministry of Textile has been holding industry consultations on this programme for the past two weeks.

According to reports, the new Textile Technology Development Scheme will take the place of the Amended Technology Upgradation Fund Scheme (ATUFS), which is set to expire on March 31, 2022.

Ministry of Textiles notifies amendment in ATUFS; Bank Guarantee should be equivalent to the amount of subsidy recommended

The new programme might be unveiled in the Union Budget, which is set to be released on February 1st. A year ago, it was stated by Apparel Resources alone that ATUF will focus on machine manufacturing likewise!

The idea is now at the conceptual stage and is pending clearance at various levels. A significant assistance for the textile sector, which is experiencing issues such as a shortage of money and clearance delays.

TUF (Technology Upgradation Fund Scheme) was established in 1999 and has undergone several revisions since then.

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