Made-ups units in textiles to get additional 10 pc subsidy

New Delhi: Units in the made-ups segment of textiles, which includes products like bedsheets, blankets and curtains, will get additional 10 per cent capital investment subsidy of up to Rs 20 crore under the Amended Technology Upgradation Fund Scheme.

"Every eligible made-ups unit which has availed 15 per cent benefit under ATUFS will be paid an additional 10 per cent capital investment subsidy on their investment up to an additional maximum cap of Rs 20 crore," the Textiles Ministry said in a notification.

"Thus, the total cap on subsidy for such a unit is enhanced under ATUFS from Rs 30 crore to Rs 50 crore (Rs 30 crore for 15 per cent CIS and Rs 20 crore for additional 10 per cent CIS respectively)," it said.

The additional subsidy will be disbursed after a period of three years. The disbursement will be based on a verification mechanism linked to production volume, employment and turnover.

"Funds for meeting additional CIS for made-ups units will be provided for in the ATUFS budget in the respective years," said the notification.

The government last month approved reforms in the apparel made-ups sector, aimed at creating large scale direct and indirect employment of up to 11 lakh persons over the next three years and boosting exports.

The reforms, part of the Rs 6,006 crore apparel package announced earlier, include providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10 per cent for made-ups similar to that provided to garments based on the additional production and employment after a period of 3 years.

The made-ups segment of textiles include products like bedsheets, blankets, curtains, crochet laces, pillow covers, towels, zari, embroidery articles and other articles. It is the second largest employment generator after apparels in the entire textiles value chain.