TUFS benefits stoppage irks units

LUDHIANA: Withdrawal of benefits under Technology Upgradation Fund Schemes (TUFS) has come as a big shock for the hosiery industry. Already on the target of pollution control board and facing shortage of labour, hosiery units have demanded restoration of the scheme as soon as possible.
The ministry of textiles had introduced TUFS in 2002 to help textile industry units become industry-savvy.TUFS was to last till 2007, but government had extended the schemes till 2012. From this June, government suddenly discontinued these schemes and banks have been told to not give any exemptions under TUFS.
The spokesperson of the Knite Wear Club Narinder Miglani said, "Textile industry is facing lots of problems due to shortage of labour. After the implementation of NREGA scheme, various industrial cities like Ludhiana are facing shortage of labour. Whatever labour is available is too costly to be a profitable venture for the industry."
He further said, "The textile industry was trying to save itself by upgrading its technology and automating the processes, so that the requirement of labour is minimized. Way back in 2007, government withdrew subsidy from reconditioned machines, due to which the textile industry was almost ruined. Now when the textile industry is trying to revive itself by infusing more and more capital with the support of TUF Scheme, the withdrawal of the said scheme will adversely effect the textile industry and it may not be possible to revive the same."
According to industrialists, lots of investment, which was in the pipeline, has been put on hold as no industry can compete globally after paying annual interest as high as 12% to 13.5% without TUF incentive. Further, it shakes the confidence of the industrialists at large in the stability of the policies of government. In case the incentives are denied further, the overseas buyers could turn to suppliers in other countries like China and BanglaDesh, which would result in irreparable loss to the industry and country at large.