The Cabinet Committee on Economic Affairs of India has approved the continuation of the Technology Upgrade Funding Scheme (TUFS) for the 12th Plan Period, which ends in March 2017. The total budget for TUFS during the 12th five year plan will be approximately $2 billion dollars.
India has allocated $400 million for this fiscal year, which acts as a subsidy for the textile industry, primarily in the weaving sector.
In order to promote domestic manufacturing of textile machinery, interest reimbursement on imported second-hand shuttleless looms has been reduced from 5% to 2%.
The one-time capital subsidy for new shuttleless looms has been raised from 10% to 15%. The continuation of TUFS is expected to help with an additional employment development of 15.81 million workers.
TUFS was launched in 1999 and has attracted about half a billion US dollars in investments so far.