The 12th Plan allocates Rs. 12,077.80 crores for the Technology Upgradation Fund Scheme (TUFS) with its focus on the weaving sector. TUFS assistance of interest subvention or for margin money is bank led, and in the 12th Plan it is available to any industrial unit from spinning, weaving, processing, silk, jute, wool, cotton ginning & pressing, technical textiles or garmenting industries desiring to invest in technology upgradation.
State-wise allocation and releases are not made under the scheme. Against an 11th Plan allocation of Rs. 15,404 crores, an expenditure of Rs. 12,383.40 crores was incurred.
The investment target for the Modified TUFS was Rs. 1,50,600 crores for the 11th Plan. For Restructured TUFS (April 2011 – end of 11th Plan), the investment target was Rs. 46,900 crores.
The provisional figures available for investments catalyzed in the last three years are given below:
Year Investment (Rs. in crores)
2009-10 28005
2010-11 397
2011-12 25030
Slowdown in the global economy leading to a deacceleration in demand and the hiatus between the termination of MTUFS and sanction of RTUFS (i.e., 29.6.2010 to 27.4.2011) contributed to the fall in investment under TUFS during 2010-11.
In 2009-10, 2,352 new cases were sanctioned. A total of 256 new cases were sanctioned in 2010-11 and 1,249 new cases in 2011-12. TUFS subsidy allocations in 2009-10 were Rs. 2,900 crores, in 2010-11, Rs. 3,100 crores and in 2011-12 Rs. 3,700 crores.
No sanction is refused assistance if it is okayed by the bank as per the norms and guidelines of the scheme. The Government compiles bank-wise, beneficiary-wise sanctions which are to be reimbursed under the scheme. Funds are reimbursed bank-wise/beneficiary-wise.