Most of these units are MSMEs, and are facing issues related to TUFS scheme. FIASWI has also raised concern over high rejection rates of applications under TUFS.
The Federation of Indian Art Silk Weaving Industry (FIASWI) has requested the ministry of textile to expedite financial assistance to weaving units in Surat under Technological Upgradation Fund Scheme (TUFS). “More than 1,500 such applications are pending to avail support from TUFS. Delay in release of funds under TUFS is hampering expansion plans of these units, which could generate thousands of jobs,” says Bharat Gandhi, chairman of FISWI, adding that the Centre has reduced subsidy under the scheme from 30% to 10%, which should again be restored to 30%. There are 22,000 weaving units in Surat with more than 4.50 lakh power-looms. These units are providing employment to more than 2.50 lakh people in Surat and the surrounding areas. Most of these units are MSMEs, and are facing issues related to TUFS scheme. FIASWI has also raised concern over high rejection rates of applications under TUFS.
“on account of inconsequential reasons like machine number not mentioned in invoice that too without giving opportunity to rectify.” The federation wants sympathetic approach, Bharat says, adding that hig- end embroidery machines are removed under the scheme and, as a result, a plethora of applications automatically became ineligible. “We want the textile ministry should reconsider its decision,” he added.
According to him, the textile industry is providing highest employment after agriculture in the country. Especially, Surat is producing 90% man-made fabric. The industry requires support from the Centre through TUFS, Group Work Shed Scheme, and simplification in processes to avail benefits of these schemes to enhance productivity and to make the industry compatible in international market, he said.
Already textile industry is facing goods and services tax (GST) related issues ranging too much paper work and problems related to credit refunds, he said, adding that hopefully the new government would solve issues on priority basis in coming days.