FICCI representatives met the Finance Minister Arun Jaitley to discuss issues related to the textiles sector and urged for an increase in funds allocation under Technology Upgradation Fund Scheme (TUFS) and interest subvention for exporters.
FICCI said, “With the exports incentives been rationalised, TUFS is the support system for the sector. However, for the current year, the budget allocation for TUFS has been reduced as against last year from Rs. 1,840 crore to Rs. 1,520 crore. This is grossly inadequate for the sector given the pending and future demands of the industry. We requested the Finance Minister to consider increasing the allocation under the scheme to Rs. 5,000 crore.”
The body also urged to cut excise duty on man-made fibres to 8 per cent from the current 12.5 per cent to reduce the gap between man-made fibres and cotton.
