The government has begun work on the new Textile Technology Development Scheme, launched with an outlay of about Rs 16,600 crore. To be implemented for the next five years, the scheme will boost textile machinery manufacturing, support to technology upgradation in existing clusters and micro, small and medium enterprises (MSMEs), and support for new integrated manufacturing facilities in various segments including spinning, weaving and knitting.
The new scheme, will replace the Amended Technology Upgradation Fund Scheme (ATUFS), which ends on March 31, 2022.
The Technology Upgradation Fund Scheme was launched in 1999 and has been modified many times since then.The thrust on manufacturing textile machinery is crucial as India imported shuttle-less looms, sewing machines and knitting machines, among others, and accessories such as spindles and needles worth almost Rs 72,000 crore in the past five years, mostly from China.
The textile ministry has proposed investment and value-addition linked incentives under the scheme. Incentives for technology transfer in case of joint ventures by foreign manufacturers, and support for research and development and commercialisation, are also likely to figure in the planned scheme as it seeks to encourage indigenous manufacturing of machinery with a focus on the garmenting sector.