In order to correct the “skewed implementation” of the textile ministry’s flagship programme, Technology Upgradation Fund Scheme (TUFS), Union Textile Minister K S Rao is mulling over imposition of a ceiling on the benefit given under the scheme. A Parliamentary Standing Committee report on Labour submitted in the Budget session of Parliament had said that the reach of TUFS was limited, with mostly industrialised states benefiting from it.
“It is true (that wealthier states have benefitted more from TUFS). In Andhra Pradesh, for example, each mill has 7,000 to 25,000 spindles while in some states in north India, each mill has 7 lakh spindles. When the benefit is given (under TUFS), there is no ceiling. We want to encourage a ceiling so that if we find that we are reaching saturation (in a state), then we will review the situation,” Rao said to this newspaper.
The Standing Committee report had said that “there has been a skewed technology upgradation so far”. At least Rs 16,399 crore has already been spent by the government following the inception of TUFS. “On perusal of the data regarding state-wise subsidy sanctioned under restructured TUFS, it is clear that already industrialised states like Gujarat and Maharashtra top the chart while poor states like Bihar, Assam, Uttar Pradesh etc lag far behind,” the report added.
While Gujarat and Maharashtra led the charts with subsidy of Rs 179.70 crore and Rs 74.09 crore respectively, Bihar, Assam, Chhattisgarh and Uttar Pradesh had received mere Rs 8.8 lakh, Rs 15 lakh, Rs 2 lakh and Rs 7 crore respectively. The Committee has recommended that “it is high time that the TUFS be given a focussed approach since there has been a skewed technology upgradation so far”.
While accepting that there were glitches in the implementation of TUFS, Rao, however, claimed that the programme had helped bring in at least Rs 2,43,000 crore by way of new investments in the last couple of years.
Speaking on the dismal performance of the populist ‘Revival, Reform and Restructuring Package for Handloom sector’ which according to the Standing Committee report “did not take off as expected”, Rao said that the ministry had failed to identify the correct beneficiaries. “The scheme is there but the ministry couldn’t identify the right beneficiaries and borrowers. Now the department is trying to get the statistics correctly, not only of individual weavers but also weavers who are members of primary and apex societies. Once the statistics comes, we’ll approach the cabinet to sanction it,” Rao added.
- The Sunday Standard