Subsidy cap for textile MSMEs raised to Rs 75 lakh
Updated: Aug 30, 2013 12:29:16pm
New Delhi, Aug 30 (KNN) Subsidy cap on the margin money for micro, small and medium enterprises (MSMEs) as also the jute sector would be increased from Rs 45 lakh to 75 lakh under the Technology Upgradation Fund Scheme (TUFS) which has been extended for the 12th Five Year Plan.
The decision to continue with the Rs 11,900 crore scheme was taken by the Cabinet Committee on Economic Affairs (CCEA) yesterday.
Of this allocation Rs 2,400 crore has allocated for the current financial year, according to an official statement.
“Capital subsidy for handloom and silk sectors would be increased from 25 per cent to 30 per cent. In addition to this, margin money subsidy cap would be increased from Rs 45 lakh to Rs 75 lakh in respect of MSME and jute sectors,” it said.
In order to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from five per cent to two per cent.
On the other hand, for new shuttleless looms capital subsidy would be raised from 10 per cent to 15 per cent, IR from five per cent to six per cent, capital subsidy from 10 per cent to 15 per cent and margin money subsidy from 20 per cent to 30 per cent with an increase in subsidy cap from Rs one crore to Rs 1.5 crore.
Sectoral cap of 26 per cent will be applicable only for the spinning segment and for all other segments it has been removed to enable balanced growth across the value chain.
A pilot project for hire-purchase of new shuttleless looms shall be introduced with a plan outlay of Rs 300 crore.
It will generate 11.5 per cent annual growth in volume in terms of cloth production and 15 per cent in value exports by increasing domestic value addition and technological depth. It is also expected to generate an additional employment to 15.81 million workers, it said.
“These features will help induce capital investment in the textile sector to achieve growth in the fibre, yarn, fabric and garment production chain,” the statement said.
The TUFS was launched in 1999 and has been one of the popular schemes among textiles units. (KNN/GUNJ)
The decision to continue with the Rs 11,900 crore scheme was taken by the Cabinet Committee on Economic Affairs (CCEA) yesterday.
Of this allocation Rs 2,400 crore has allocated for the current financial year, according to an official statement.
“Capital subsidy for handloom and silk sectors would be increased from 25 per cent to 30 per cent. In addition to this, margin money subsidy cap would be increased from Rs 45 lakh to Rs 75 lakh in respect of MSME and jute sectors,” it said.
In order to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from five per cent to two per cent.
On the other hand, for new shuttleless looms capital subsidy would be raised from 10 per cent to 15 per cent, IR from five per cent to six per cent, capital subsidy from 10 per cent to 15 per cent and margin money subsidy from 20 per cent to 30 per cent with an increase in subsidy cap from Rs one crore to Rs 1.5 crore.
Sectoral cap of 26 per cent will be applicable only for the spinning segment and for all other segments it has been removed to enable balanced growth across the value chain.
A pilot project for hire-purchase of new shuttleless looms shall be introduced with a plan outlay of Rs 300 crore.
It will generate 11.5 per cent annual growth in volume in terms of cloth production and 15 per cent in value exports by increasing domestic value addition and technological depth. It is also expected to generate an additional employment to 15.81 million workers, it said.
“These features will help induce capital investment in the textile sector to achieve growth in the fibre, yarn, fabric and garment production chain,” the statement said.
The TUFS was launched in 1999 and has been one of the popular schemes among textiles units. (KNN/GUNJ)
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