The textile and clothing industry in Coimbatore and Tiruppur districts are waiting for payment of ₹1,000 crore subsidy arrears under the Technology Upgradation Fund Scheme (TUFS), said K. Shanmuga Sundaram, Member of Parliament for Pollachi.

Mr. Shanmuga Sundaram raised two major issues related to the industry during the question hour in Parliament on Friday. One was the pending subsidy for beneficiaries under the TUFS and another was including yarn and fabric for benefits under Remission of State and Central Taxes and Levies (RoSCTL) scheme.

 

He told The Hindu over phone that 25,000 units were covered under TUFS and ₹10,000 crore was the arrears to be paid under the scheme to these units in the country. It included ₹1,000 crore for units in Coimbatore and Tiruppur districts. The disbursement had not been regular for the last two years. Even the existing beneficiaries, who were receiving the subsidy under the scheme, were not getting it properly now. This was causing financial stress in the industry.

 

Under the RoSCTL scheme, the export benefit was available only for garments and made-ups. It should be extended to yarn and fabric too, he said. It would encourage export of value added yarn and fabrics and would not affect the domestic industry. Hence, the government should extend the scheme, which included remission of embedded taxes, for yarn and fabric too.

 

Published On : 29-06-2019

 

Source : The Hindu