TUFS delay Textile growth
Textile companies have alleged that delays in disbursement of loans under the Technology Upgradation Funds Scheme (TUFS) are resulting in quarterly losses to the tune of Rs 350 crore to the sector. The companies say they do not have enough funds to place orders for new machines and raw material, a situation that is affecting their productivity and consequent profitability. In a letter to Textiles Minister Shankersinh Vaghela, the Confederation of Indian Textile Industry (CITI) has claimed the arrears are piling up and adding to the troubles of a sector already hit by the appreciating rupee. Former association chairman V K Ladia said, “Due to the delay in providing loans, companies are unable to even buy fresh stocks of cotton.” “In South India, the TUFS interest subsidy arrears stood at over Rs 11.7 crore up to December 2006. Since then, the arrears are piling up as another 10 months have passed,” CITI sources said, adding that the total nation-wide outstanding dues were in the region ...