The textile industry says it’s entitled to dues worth Rs 3,000 crores under the Technology Upgradation Fund Scheme. But it is unlikely these dues will be released. That means, liabilities related to the blackout or left out period cases will be given a silent burial.
The blackout period (June 20, 2010 to April 27, 2011) refers to a time when subsidy payments under the Technology Upgradation Fund Scheme were halted temporarily. The aim was to change the contours of the scheme from an open-ended scheme to a closed-ended one. The revised scheme came in April 2011.
Those who had invested during those 10 months of the blackout period, and were awaiting a decision on the eligibility of TUFS on the blackout period, have now got their answer. They are disappointed the funds are not going to be released. And the reason given is that there is a paucity of funds.
These textile units say they have continuously been under severe stress since April 2014 due to the non disbursal of committed liabilities under the TUFS scheme. Several hundreds of spinning mills are facing closure as they are likely to become non-performing assets.
So the textile industry has made a representation that the committed liabilities under TUFS scheme be disbursed and that cotton yarn be extended export benefits like Merchandise Exports from India Scheme on par with other textile products.