Reduced budget outlay under ATUFS to hit textile sector’s modernization
TNN | Updated: Feb 7, 2019, 11:13 IST
Representative imageSURAT: Modernisation in the country’s largest man-made fabric (MMF) textile industry in the city will come to a grinding halt with Central Government reducing allocation under Amended Technology Upgradation Funds Scheme (ATUFS) to Rs700 crore in the revised outlay for the textile sector in 2019-20.
The textile sector has been left in the lurch with the Central Government reducing the outlay for it from Rs6,943 crore to Rs5,831 crore for 2019-20. Moreover, the ATUF scheme and Rebate on State Levies (ROSL) have been reduced from Rs2,300 crore to Rs700 crore and Rs2,164 crore to Rs1,000 crore, respectively.
Industry sources said backlog in the ATUFS would be over Rs2,000 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.
Leader of power loom sector, Ashish Gujarati said, “ATUFS is lifeline of the textile sector. With just Rs700 crore for the ATUFS, modernization in the textile industry will be affected. The power loom weavers who have to repay loan instalment will face a difficult situation.”
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% 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.
Federation of Gujarat Weavers’ Association (FOGWA) president Ashok Jirawala said, “FOGWA has demanded a joint inspection team consisting of textile association, MANTRA and textile commissioner’s office be formed to hold an open house with the weavers who are yet to get the subsidy amount. Out of the total 7,000 files submitted for subsidy under ATUFS, only 70 have been approved for disbursal across the country.”
The textile sector has been left in the lurch with the Central Government reducing the outlay for it from Rs6,943 crore to Rs5,831 crore for 2019-20. Moreover, the ATUF scheme and Rebate on State Levies (ROSL) have been reduced from Rs2,300 crore to Rs700 crore and Rs2,164 crore to Rs1,000 crore, respectively.
Industry sources said backlog in the ATUFS would be over Rs2,000 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.
Leader of power loom sector, Ashish Gujarati said, “ATUFS is lifeline of the textile sector. With just Rs700 crore for the ATUFS, modernization in the textile industry will be affected. The power loom weavers who have to repay loan instalment will face a difficult situation.”
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% 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.
Federation of Gujarat Weavers’ Association (FOGWA) president Ashok Jirawala said, “FOGWA has demanded a joint inspection team consisting of textile association, MANTRA and textile commissioner’s office be formed to hold an open house with the weavers who are yet to get the subsidy amount. Out of the total 7,000 files submitted for subsidy under ATUFS, only 70 have been approved for disbursal across the country.”
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