Budget may have new textile scheme
The new scheme, Textile Technology Development Scheme, which will replace the Amended Technology Upgradation Fund Scheme (ATUFS), might be announced in the upcoming Union budget. It will have an outlay of about Rs 16,600 crore for the next five years and has been designed to buttress textile machinery manufacturing, support to technology upgradation in existing clusters and micro, small and medium enterprises (MSMEs).
However, beneficiaries of the production-linked incentive (PLI) scheme for textiles would not be eligible for incentives under the new programme. “The scheme is at a conceptual stage and is awaiting approvals from various levels. There might be a new name for the scheme,” said an official aware of the development. “We have done industry consultations, and the proposed scheme has two new components – textile machinery and integrated modern facilities,” stated the official.
The Ministry of Textiles has suggested 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 be incorporated in the scheme. It is also supporting thresholds and caps for the incentives.