Trending Now
- “If Edappadi Palaniswami permits, a thousand young members from the Virudhunagar district AIADMK are prepared to take up arms and engage in battle under my command.” – Former AIADMK Minister Rajendra Balaji
- “India is ready to deal with any counter-attack by Pakistan” – Wing Commander Vyomika Singh
- Central govt orders extension of CBI Director Praveen Sood’s tenure for another year
Coimbatore
SIMA demands payment of technology upgradation funds
March 17, 2016
The Southern India Mills’ Association (SIMA) appealed to the Finance Minister, Arun Jaitley, to release the funds as part of the Technology Upgradation Fund Scheme (TUFS). The association claimed that funds have not been released since September 2014.
Due to the non-payment of subsidies for more than a year and a half, most of the
spinning mills were incurring cash losses. The situation has, according to SIMA, worsened due to the eroding working capital of the mills.
SIMA Chairman, M. Senthilkumar, pointed out that in the 2016-17 Union Budget, only Rs.1,480 crore was allocated for TUFS against the actual requirement of around Rs.7,000 crore, he appealed to the minister to allocate the balance fund of around Rs.5,500 crores to clear the backlog.
“Hundreds of textile units are likely to become NPAs as the TUF subsidy has not been released on time,” he said.
The Cabinet Committee has already approved the extension of the TUF scheme for the entire 13th Five Year Plan period and to the allocation of Rs.17,822 crores for expenses.
The amended TUFS excludes the spinning sector, but gives 15 percent capital subsidy for garments and technical textiles, and 10 percent capital subsidy for weaving and processing sectors.
