Investment slumps in textiles; “R-TUFS” scheme to promote investments in sector

In 2012, the textile and clothing industry in the country has made minimal investment in expansions and new projects.
In 2011, the Union Ministry of Textiles had announced the Restructured Technology Upgradation Fund Scheme (R-TUFS) with subsidy cap for each value adding segment, such as spinning, weaving and processing. The total subsidy amount provided for 2011-2012 was Rs. 1,972 crore. It was anticipated to leverage total investment of Rs. 46,900 crore.
The subsidy claimed was only Rs. 362 crore. Though 3,542 applications were received, proposing a total investment of Rs. 35,892 crore (April 2011 to November 2012), implementation of the projects are delayed.
What is R-TUFS?

  • It is a scheme introduced by Govt. of India, Ministry of Textiles, to channelize investments towards hitherto low investments segments to facilitate a balanced growth across the value chain.

Objectives of the Scheme:

  • Addressing the issues of fragmentation and promoting forward integration by providing 5% interest reimbursement for spinning units with matching capacity in weaving/knitting/processing/garmeting
  • Promoting investments in sector with low investment like processing
  • Technology upgradation in weaving by providing higher capital subsidy for establishment of new shuttle-less looms
  • Ensuring greater participation of SSI (Small Enterprises) units by increasing the limits under this category



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