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

New Delhi, Apr 14 (KNN) The Ministry of Textiles has said that the entities can exercise an option for getting the JIT recommended subsidy released prior to scrutiny of the JIT reports by respective authorities as per delegated powers, subject to submission of Bank Guarantee equivalent to recommended subsidy.

The Ministry of Textiles had proposed easing out the norms under Amended Technology Upgradation Fund Scheme (TUFS) during post lockdown period of Covid-19 outbreak.

In this regard, the Ministry issued an order notifying the modifications in the Revised Guidelines of ATUFS.

The modification, the order said is that the Bank Guarantee should be equivalent to the amount of subsidy recommended by the JIT in its report.

The Bank Guarantee should be valid for one year and extendable further, if required, the Textile Ministry’s order.

Subsequently, the Bank Guarantee will be forfeited to the extent of excess payment made along with the penal interest as applicable under the rules, in case eligible subsidy amount approved for release after scrutiny of JIT report by respective authority works out to be lower than the amount recommended by the JIT, the order added. (KNN Bureau)