Higher TUF outlay cheers

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: The textile industry is upbeat about the finance minister P Chidambaram’s announcement of an increased provision of technology upgraded fund (TUF) for integrated textile parks from Rs 911 crore in the current year to Rs 1,090 crore in 2008-09.

Under the TUF scheme, textile companies receive the required finance at the subsidised interest rate of 5% from the special fund created by the government. However, textile exporters, who had expected substantial tax deductions due to the rupee appreciation, are downhearted.

The apparel textile community seemed unhappy for being neglected from the budget proposal.

Amit Goyal, president, Confederation of Indian Apparel Exporters (CIAE), said, “The appreciation of the rupee has eaten into the profit margins of exporters. We had anticipated constructive and immediate relief measures from the finance ministry for the revival of the sector.”

He added that the finance minister did not express concern about difficulties faced by the exporters. The budget completely neglected cuts in customs and excise duties, corporate tax, and refund of transaction costs.

BK Goenka, vice chairman and managing director, Welspun Group welcomed the increase of technology upgradation fund (TUF) scheme to Rs 1,090 crore. “This will give fillip for modernisation and bring in advanced textile technology to the country, which will directly help the country achieve its textile export targets.”

Industry analyst Fasiha Sheikh from Parsoli Corporation, too, said that though the FM in his budget speech mentioned that special attention will be given to exporters who are hit by the rupee appreciation, nothing substantial in this regard was announced as expected before the announcement of the budget.

However, on the positive side, the minister, during the budget speech, specified that an additional 250 handloom clusters will be developed across the country.