ANNOUNCEMENT 01 Apr 2013In April 2013, the government of India announced a change to private-sector financial support.
NUMBER OF INTERVENTIONS
The Technology Upgradation Fund Scheme (TUFS) is a subsidy program of the Indian Ministry of Textiles. The TUFS was introduced in 2009, and restructured in 2010. It wasfurther revised with effect from 01 April 2013. This revised schemeshall be in place until 31 March 2017.
The TUFS provides reimbursements for interest payments as well as other financial subsidies. The amounts vary for each textile sector. In lieu of interest reimbursement, margin money, additional capital subsidy or reimbursement for exchange-rate fluctuations in foreign-currency-denominated loans may also be provided. The scheme also funds the development of common infrastructure, manpower restructuring, and in some cases, purchase of land.
The Scheme is available to both domestic-owned and 100% foreign-owned entities.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.