Addressing a seminar on "TUF scheme for the textile and jute sectors", Ghosh said the industries required extensive use of on-line facilities to interact with other agencies and government for faster production process.

The scheme, launched on April 1, 1999 and valid till March 31, 2004, would also give loans for importing new equipment(except special cases) with a minimum residual life of 10 years in the cotton ginning and pressing, textiles and jute industries.

Stating that the scheme had evoked good response from the industry, ghosh said, so far the three nodal agencies IDBI, IFCI and SIDBI have received 77 applications with a loan amount of Rs 2,500 crore.

The TUF scheme, which would also provide cover for exchange rate fluctuation not exceeding five per cent per annum, however, would not reimburse the interest support amount if an account became a non-performing asset, ghosh said.

He further said the scheme was not targetted to revival of sick units and would not entertain such applications.

P V Narashimham, Chairman, IFCI, said while the interest subsidy was being given by government, credit risk had to be borne by the financial institutions.

For the scheme to be fully operational, it would take another one year when a significant part of sanctioned amounts would be disbursed, he said.Earlier, S K Chakrobarty, ExecutiveDirector, IDBI, said the institution has so far received 44 applications worth Rs 1,850 crore out of which 16 applicant worth Rs 800 crore have been sanctioned.