Shares of textile companies hogged limelight after the government on Wednesday approved an Amended Technology Upgradation Fund Scheme (A-TUFS) in place of the existing Revised Restructured TUFS for technology upgradation of the textiles industry. The move is expected to boost job creation and exports in the sector.
Cheering the news, shares of textile companies such as Lakshmi Machine Works and Indian Card Clothing closed 7.86 per cent and 12.70 per cent up at Rs 3,796.60 and Rs 252, respectively.
The amended scheme would give a boost to Make in India initiatives in the sector and is expected to attract investment to the tune of Rs 1 lakh crore and create over 30 lakh jobs.
A budget provision of Rs 17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS.
Under the new scheme, there will be two broad categories — apparel, garment and technical textiles — where 15 per cent subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years.
The remaining sub-sectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crore on similar lines.