Applications under TUFs falls in 08-09, project cost zooms

The Government of India under the aegis of the Ministry of Textiles had introduced the Technology Up-gradation Fund Scheme (TUFS) to help the beleaguered textile sector modernise its technology and equipment and which turned out to be one of the highly successful schemes implemented by the Government of India.

In this second part of this series, Fibre2fashion brings forth the number of projects for which applications were received and the amount of funds sanctioned under the scheme from the date of its inception till the current fiscal year. In the first part of this exclusive series on TUFs, we had covered disbursals done by 122 banks to the textile and its allied sector from the inception of the scheme in 1999.

The TUF scheme which saw the light of the day in the fiscal year 1999-2000 received applications for 407 projects totaling to a project cost of Rs 5,771 crores, out of which Rs 2,421 crores was sanctioned for 309 projects, again of which 179 projects received disbursals amounting to Rs 746 crores in that fiscal year.

Fiscal year 2006-2007 witnessed receipt of the highest number of applications and which stood at half of the number of total applications received till June 2009. The project cost of these applications totaled to one-third of the project cost of all applications received since the inception of the scheme.

In fiscal year 2008-09, the figures for which are provisional, though the number of applications were just half of those received in 2006-07, the project cost was just under one-third of the overall project cost of all applications received since 1999, which implies that the applicants invested in latest and high technology and equipment which could have raised the project cost to these levels.

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