CII demands Rs.50 bn for Technology Upgradation Fund Scheme

CHENNAI - The Confederation of Indian Industry-Southern Region (CII-SR) Tuesday asked the government to provide Rs.5,000 crore (Rs.50 billion) towards the Technology Upgradation Fund Scheme (TUFS) and scrap the import duties on man made fibre.

“We hope the finance minister to allocate around Rs.5,000 crore to TUFS which will be sufficient to pay not only the backlog dues of last two quarters but also for four quarters of the next fiscal,” CII-SR Policy Sub-Committee chairman Manikam Ramaswami told reporters here.

Thanking union Textiles Minister Dayanidhi Maran for getting the arrears under TUFS settled, Ramaswami said the interest subsidy for the last two quarters of around Rs.1,200 crore is due.

He also asked the central government to scrap the import duties on man made fibres like polyester, viscose and acrylic so that they are accessible to the masses.

“While crude oil is exempt from duties, its by-product and the input for polyester is subject to duties which needs to be scrapped so that the cost of poor man’s textiles come down,” Ramaswami added.

While asking the government to continue with the stimulus package for the textile sector, he said the textile units in Tamil Nadu face severe power shortage forcing the units to use generators powered by liquid fuel.

“The fuel used for generating power should not be subject to excise duty,” he added.