The Union Government is likely to release Rs 2,546 crore as subsidy for the textile industry under the Technology Upgradation Fund Scheme (TUFS). The proposed funds are expected to help the cash-strapped industry, clear its dues remaining up to 30 June 2009.
The government has also made the process faster and simpler by electronic transmission of funds which will facilitate transfer of money to financial institutions within three days.
The proposed funds are expected to be transferred electronically to more than 121 financial institutions and will help 12,514 beneficiaries.
Under the TUFS, the government provides five per cent subsidy to industries for modernisation and installation of new upgraded machinery.
In the Union Budget, the allocation for TUFS has been increased from Rs 1,090 crore to Rs 3,140. The Union Ministry of Textiles is likely to release 81 per cent of the funds so that a backlog of around one year could be cleared and increase capital availability for the industry.
Source : ProjectsToday
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