Technology upgradation backlog for FY 05-06 runs to Rs 200 cr: CITI

Mumbai, May 8 (UNI) Confederation of Indian Textile Industry (CITI), which represents the entire textile value chain from yarn to garments, has brought to the notice of Government that the investment backlog under Technology Upgradation Funds Scheme(TUFS) for 2005-06 has increased to Rs 200 crore and if immediate measures are not taken it may hamper the growth witnessed by the textile industry since the removal of quotas.

The funds available for the current year out of the allocation of Rs 535 crore made in the central budget will therefore be less than Rs 353 crore.

Investments in the textile and clothing industry, have run into a crisis with disbursement of interest compensation under the Technology Upgradation Fund Scheme (TUFS) coming to standstill. In a letter addressed to Secretary (Textiles), CITI chairman Hiren Shah, has pointed out that a large number of claims for TUFS assistance relating to the quarter of October-December 2005 are still pending with the lending agencies and in the case of the January-March 2006 quarter, there has practically been no disbursement at all.

''With increasing investments in various segments of the industry, the requirement of funds for TUFS for the current year can be met only if the allocation is increased at least to Rs 900 crore,'' said Mr Hiren Shah adding ''capacity building is the most important measure required to translate the growing export opportunities into actual exports and to meet the increasing demand in the country for textile products. Any laxity on this front at this crucial juncture can lead to both export opportunities and domestic demand being lost to the industries of other countries.'' CITI chairman has stressed the need to release funds to the nodal agencies immediately for the huge claims pending with them and to enhance the allotments for the current year urgently in order to avoid delay in disbursements later during the year.

He has also requested the secretary textiles, to take up this issue urgently with the Finance Ministry and has asked the finance secretary to make the requisite funds available at the earliest.

UNI VS ADG AW1941