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The Cabinet Committee on Economic Affairs (CCEA) today approved modification in the existing Technology Upgradation Fund Scheme (TUFS).
Accordingly, grant will be provided for the textile processing units, in addition to the normal interest subsidy of 5 per cent and a capital subsidy of 10 per cent for benchmarked processing machinery under TUFS prospectively. The additional capital subsidy would be admissible to the investments made in the benchmarked technology for one year from today.
An extension of the scheme beyond one year would be considered later by the Ministry, if necessary. The additional capital subsidy would be admissible for specified benchmarked processing machinery, and not for the project as a whole. It would be available to the composite units as well as to the stand-alone processing units.
The provision of additional capital subsidy of 10 per cent for textile processing units under TUFS will encourage the textile processing sector to undertake modernization so as to become competitive in the international scenario.
RK/DS/LV
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