The weavers in Surat are upset as the Finance Minister has reduced allocation under Amended Technology Upgradation Funds Scheme (ATUFS) to Rs 700 crore. The ATUFS scheme and Rebate on State Levies (ROSL) have been reduced from Rs 2,300 crore to Rs 700 crore and Rs 2,164 crore to Rs1,000 crore, respectively.

This will likely to affect the modernisation in the textile industry. The power loom weavers who have to repay loan installment will face a difficult situation. Backlog in the ATUFS would be over Rs 2,000 crore as over 3,000 projects that got implemented are yet to receive subsidy due to complicated guidelines of ATUFS. The government had earlier allocated Rs17,822 crore, including Rs5,151 crore for ATUFS for the 13th Five Year Plan in order to clear long-pending committed liability.

Surat based Federation of Gujarat Weavers’ Association (FOGWA) has given a representation to Textile Minister to clear the backlog of TUF subsidy. Power loom weavers stated that 1,500 files from Surat are pending for subsidy approval at the textile commissioner’s office under the ATUFS for 10 per cent subsidy. The weavers had ordered machinery from foreign countries for taking benefit of the subsidy. The complicated guidelines of ATUFS have resulted in non-reimbursement of the subsidy amount to the weavers.