Indian government is giving out funds worth Rs.3546 crore to the textile industry within three days

For the first time, Indian government is disbursing a large fund worth Rs. 2546 crore to the domestic textile mills to clear up their dues upto June 30, 2009. The textile industry of India had been badly affected by the economic recession. The money will be released under the Technology Upgradation Fund Scheme (TUFS) and it will be released in three days. Under the TUFS, the government provides 5% subsidy for modernization and installation of new machineries and 10% capital subsidy.

The news was announced at a conference by Union Textile Minister, Mr. Dayanidhi Maran. He said that for the first time, the government had released such a large amount of subsidy in one go.

Out of this amount, the 3286 applicants from Tamil Nadu will receive Rs.643 crores, 1,186 applicants of Maharashtra will receive 637 crores, 1,543 applicants of Punjab will receive Rs.352 crores and 4,051 applicants from Gujarat will receive Rs275 crores. The funds will be transferred to 121 financial institutions around the country. In FY 2008-2009, the government released Rs. 2,632 crore under the scheme.

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