The government is delaying to issue notification for Technology Up-gradation Fund Scheme (TUFS), hindering the industry from undertaking BMR and fresh investment initiatives for textile industry.
The federal government has withheld the notifications of initiatives under the Textile Policy 2014-19, to avail the terms of Technology Up-gradation Fund Scheme (TUFS). Consequently, serious structural imbalances have occurred across the textile value chain, as 25% of the basic textile worth $4 billion is being exported annually without converting into garments due to the non-existence of backward and forward linkages to add value up to $15 billion exports.
It is worth noting that only 15% of the previous textile policy 2009-14 could be implemented due to paucity of funds. Moreover, refunds relating to investment mark-up support and technology up-gradation fund (TUFS) have not been cleared till date.
Chairman APTMA SM Tanveer apprehended that the new scheme may also witness a similar fate in case no timely steps are taken by the government. He urged the Prime Minister, Finance Minister and Commerce Minister to take immediately stock of the situation and issue directions for notifying the Textile Policy 2014-19, in particular the TUFS, to ensure investment for undertaking initiatives under BMR and green field projects.