Technology Upgradation Fund (TUF) provision increased to Rs 1,090 crore

The two principle schemes for Textiles – the Scheme for Integrated Textile Parks (SITP) and the Technology Upgradation Fund (TUF) – will be continued in the Eleventh Plan period. All 30 integrated textile parks have been approved and 20 units in four parks have commenced production. It has been proposed to maintain the provision for SITP at Rs. 450 crore in 2008-09. The provision for TUF is proposed to be increased from Rs. 911 crore in the current year to Rs. 1,090 crrore in 2008-09.

The cluster approach to the development of the handloom sector has made rapid progress. 250 clusters are being developed. 443 yarn banks have been established. By March 2008, over 17 lakh families of weavers will be covered under the health insurance scheme. It has been proposed to increase the allocation to Rs. 340 crore in 2008-09.

In order to scale up both infrastructure and production, it is proposed to take up six centres for development as mega-clusters. Varanasi and Sibsagar will be taken up for handlooms, Bhiwandi and Erode for powerlooms, and Narsapur and Moradabad for handicrafts. Each mega-cluster will require about Rs. 70 crore. It has been proposed to start the process with an initial provision of Rs. 100 crore in 2008-09.

Source : Press Information Bureau

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