Modified Tufs
Modified Tufs
(01-04-2007 to 31-03-2012)
(To be published in the Gazette of India Extraordinary Part I Section I )
MINISTRY OF TEXTILES
RESOLUTION
New Delhi, the ---- May , 2008.
No.6/4/2007-CT I
Objective:
In spite of a strong and diversified fibre and production base, for various historical reasons, the Indian
textiles industry has suffered from severe technological obsolescence and lack of economies of scale.
The Technology Upgradation Fund Scheme (TUFS), which was introduced on 01.04.1999, has
provided a "fresh lease of life to the textile industry." It has helped overcome technological
obsolescence and create economies of scale. It has also helped in transition from quantitatively
restricted textiles trade to market-driven global merchandise. It has infused huge investment climate in
the textiles sector and in its operational life span of eight years since 01.04.1999 till 31st March 2007,
has propelled investment of more than Rs. 1,16,981 crore.
2.
The momentum thus achieved as a result of tremendous efforts on the part of both
Government and industry needs to be further strengthened. Compared to the size and technology level
of textiles units in the competing countries, India needs to increase the capacities and go in for
modernization on continuous basis. The globalization of textiles trade mandates for financial assistance
to domestic industry to abridge prime lending rate in the country to that of the LIBOR.
3.
The Scheme off sets the global disadvantages faced by the Indian textiles industry in the field
of power, transactional cost and additional cost borne by the industry due to poor infrastructure. The
Scheme is equally crucial to attain higher level of infrastructure creation for modernization of textiles
sector. 71% of the beneficiaries under TUFS are from small scale industry sector. It is necessary to
continue the process of strengthening this sector through this Scheme. The manufacturing chain in the
textiles industry starts right from ginning of cotton till the clothing stage. Thus, TUFS is crucial for all the
inter-connecting sectors such as spinning, weaving, knitting, processing and garmenting.
4.
However, the Scheme has witnessed un-uniform benefits to the various segments of the
textiles sector. The spinning and composite segments of the textiles sector have driven maximum
benefits whereas the segments like processing, garmenting, powerlooms etc. are still the weak links in
the textiles value chain and have not realized the potential for modernization:
5.
The Government recognizes the potential of garmenting, technical textiles and processing
segments for high value addition and employment generation and accords high priority to decentralized
powerlooms segment in Small and Medium Enterprises dominated textiles economy for employment
generation and capacity building. The Working Group on Textiles and Jute Industry for XI Five Year Plan
constituted by Planning Commission has set a growth rate of 16% for the sector, projecting an investment
of Rs. 150,600 crore in the plan period.
6.
Now in the preface and recognition of the above, the Government resolves to further continue the
Technology Upgradation Fund Scheme for the textiles & jute industries with effect from 01.04.2007 upto
31.03.2012 and to provide the financial and operational parameters of the Scheme in respect of loans
sanctioned with effect from 01. 04.2007 as follows:i). The scheme will continue to provide a reimbursement of five percentage points on the interest
charged by the lending agency on a project of technology upgradation in conformity with the Scheme.
However, for the spinning machinery the reimbursement will be four percentage points.
ii). The scheme will continue to provide cover for foreign exchange rate fluctuation not exceeding 5%.
However, for the spinning machinery the coverage will be 4%.
iii). The Scheme will now provide an additional option to the powerlooms units to avail of 20% Margin
Money subsidy under TUFS in lieu of 5% interest reimbursement on investment in TUF compatible
specified machinery subject to a capital ceiling of Rs. 200 lakh and ceiling on margin money subsidy
Rs.20 lakh. A minimum of 15% equity contribution from beneficiaries will be ensured.
iv). The Scheme will now provide 15% Margin Money subsidy for SSI textile and jute sector in lieu of 5%
interest reimbursement on investment in TUF compatible specified machinery subject to a capital
ceiling of Rs. 200 lakh and ceiling on margin money subsidy Rs.15 lakh. A minimum of 15% equity
contribution from beneficiaries will be ensured. The by
v). The Scheme will continue to provide 5% interest reimbursement plus 10% capital subsidy for
specified processing machinery.
vi). The Scheme will now provide 5% interest reimbursement plus 10% capital subsidy for specified
machinery required in manufacture of technical textiles and garmenting machineries.
vii). The Scheme will now provide Interest subsidy/capital subsidy/Margin Money subsidy on the basic
value of the machineries and exclude the tax component for the purpose of valuation in view of
the decision for non-subsidizing the taxes.
viii). The Scheme will provide 25% capital subsidy on purchase of the new machinery and equipments
for the pre-loom & post-loom operations, handlooms/up-gradation of handlooms and testing &
Quality Control equipments, for handloom production units.
ix). As per para 3.2(2) of the existing Scheme, certain imported second hand machinery have been
permitted. The entire range of imported second hand machinery will now be ineligible under the
Scheme for any benefit except automatic shuttleless looms with the value cap of Rs. 8.00 lakh
per machine and 10 years vintage and with a residual life of minimum 10 years.
x). Other investments such as energy saving devices, effluent treatment plant, in-house R&D, IT
including ERP, TQM including adoption of ISO/BIS standards, CPP etc (including nonconventional sources) as mentioned in Para 3.3(2) of the existing Scheme will now be eligible for
benefits of the scheme only upto 25% of the cost of machinery.
xi). For a specific thrust to garmenting, machineries for CAD, CAM and design studios and likes will
be included in the separate heading of the guidelines of the scheme with a financial cap to be
determined by the Inter Ministerial Steering Committee (IMSC) under the Chairmanship of
Secretary (Textiles).
xii). Investments like land, factory building, pre-operative expenses and margin money for working
capital will now be ineligible for benefit of reimbursement under the scheme except meant for
apparel sector and handloom with existing 50% cap.
activity, the eligible investment under this head will only be related to plant & machinery eligible
for manufacturing of apparel.
xiii). To determine the eligibility for capital subsidy for the eligible specified machinery the
cut off date will be date of commencement of commercial production irrespective of the
date of the sanction of the loan. The date of commencement of commercial production
shall be certified by Chartered Engineer and Chartered Accountant.
xiv). On loans sanctioned during 01.04.1999 and 31.03.2007, the then existing parameters and
guidelines will apply.
7.
below:
The detailed scope of the scheme, eligibility criteria and operational parameters will be as
b)
c)
i)
ii)
iii)
iv)
Spinning.
v)
vi)
vii)
viii)
ix)
Jute industry.
II. ELIGIBILITY CRITERIA FOR ASSISTANCE
But in the widely varying mosaic of et chnology obtaining in the Indian textile
industry, at least a significant step up from the present technology level to a substantially higher
one for such trailing segments would be essential.
benchmarked in terms of specified machinery for each sector of the textile industry. Machinery
with technology levels lower than that specified will not be permitted for funding under the TUF
Scheme.
2.
ELIGIBLE MACHINERY
Installation of the following types of machinery in a new unit or in an existing unit by way of
replacement of existing machinery and / or expansion will be eligible for coverage under TUF
scheme:
2.1
Annex A.
2.2
Annex - B-1.
Annex B-2.
2.4
Annex C.
Weaving / Knitting
Annex-D1
2.6
Annex-D2
2.7
Annex E.
2.8
AnnexF
2.9
Jute industry
Annex G.
2.10
Annex-H
2.11
Annex-I
2.12
Annex-J
2.13
Annex-K
2.14
Annex-L
2.15
Machinery eligible
for CAD, CAM and design studio
Annex-M
3.
3.1
TYPE OF UNITS :
(1)
(2)
Existing units can modernise and / or expand with the appropriate eligible technology.
(3)
New units must set up their entire facilities only with the appropriate eligible
technology.
(4)
A unit can undertake one or more activities listed at I-SCOPE OF THE SCHEME
hereinbefore under the Scheme.
(5)
3.2
Under the TUF Scheme, generally only new machinery will be permitted.
(2)
However, the following imported second hand machinery are also eligible under TUFS:
a) Air jet, Projectile, Rapier and Waterjet shuttleless looms fitted with or without electronic
jacquard / electronic dobby and with or without high speed direct beam warper with
creel and/or sectional warping machine with auto stop and tension control of upto 10
years vintage and with a residual life of minimum 10 years and with the value cap of
Rs. 8.00 lakh per machine.
(3)
A certificate from a chartered Engineer of the exporting country certifying the vintage
and residual life of the imported second hand machinery must be furnished to the
lending agency at the appropriate time as determined by the lending agency. Such a
certificate is compulsory for any import of eligible second hand machinery under this
scheme irrespective of the value of such import.
(4)
(5)
Waste reduction equipment or devices will be eligible for funding under the TUFS.
(6)
Eligibility of any other textile machinery equal to or higher than the benchmarked
technology not listed in the annexures or developed in the course of the operation of
TUFS will be, suo motu or on reference, specifically determined by the Tec hnical
Advisory-cum-Monitoring Committee (TAMC) to be constituted by the Government.
(7)
The size of the technologically upgraded facilities of an existing unit or size of the new
unit must be of a minimum economic size (MES). MES for eligible segments of the
industry should be any unit which is financially viable as per viability analysis of the
financial institutions or banks. The MES for the cotton ring spinning will be decided by
the IMSC.
(8)
Machinery eligible for one segment is eligible for other segments / activity also unless
its eligibility is specifically restricted for a particular segment.
3.3
The following investments for apparel sector and handloom sector will also be eligible
to the extent necessary for the plant and equipment to be installed for Technology
Upgradation and the total of such investments will not normally exceed 50% of the total
investment in such plant and machinery:
(a)
Land and factory building including renovation of factory building and electrical
installations;
(b)
(c)
Margin money required for working capital, specifically required for the
technology upgradation;
2)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
3)
Investment in the acquisition of technical know how including expenses on training and
payment of fees to the foreign technicians.
4)
Lending in excess of the limits prescribed above in respect of the items included in
subparas (1) and (2) of this para (i.e. para 3.3) shall attract the normal lending rates.
3.4
(2)
(3)
3.6
The cut-off date under the Scheme for availing the benefits will be the date of sanction.
(b)
Whenever a new machine or equipment which is equal or superior than the bench
marked equipments or machines, already included in the existing list of items of the
GR, is made eligible under TUFS, the TUFS benefits for such equipments may be
extended for the loans disbursed after 01.04.2007. In case inclusion of any
machinery/equipment is due to relaxation of norms laid down in the GR of TUFS, the
effective date of eligibility of interest reimbursement would be applicable only from the
date of the TAMC / IMSC meeting.
3.7
3.8
3.9
3.10
If a loan is not fully covered under TUFS, i.e., it consists of both the TUFS and non-TUFS
components, then disbursements and repayments are required to be apportioned
proportionately between the TUFS and Non- TUFS components, for the purpose of
working out interest reimbursements payable.
b)
If eligible investment in a project works out to lower than loan amount and promoters have
incurred expenditure more than their contribution before approach date for the loan, then
loan to the extent of eligible investment minus expenditure incurred over and above
promoters contribution, is declared eligible for interest reimbursement.
c)
If eligible investment in a project works out to more than loan amount and promoters have
incurred expenditure more than their contribution before approach date for the loan, then
loan to the extent of total loan amount minus expenditure incurred over and above
promoters contribution, is declared eligible for interest reimbursement.
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4.
4.1
Ordinarily, only composite (cotton ginning with pressing) units will be eligible for
coverage under the Scheme. However, independent ginning or pressing units will be
eligible to modernise under the scheme provided they forward - integrate or backward integrate with the pressing and ginning facility respectively, of eligible technology level.
b)
c)
Baling Press Standards should be in conformity with the amended BIS specifications.
d)
A unit with existing 2-stage manual bale pressing machine will not be compelled to
replace it, while going for other mondernisations, as per TUFS. However, a unit
replacing the bale pressing machine or installing bale pressing machine for the first
time will be required to install only single stage automatic bale pressing machine.
e)
The cotton ginning & pressing units will have the option to avail of benefits either under
TUFS or under TMC but not both.
4.2
In the cotton ring spinning system, new units, capacity expansion and
modernisation of the units with eligible MES will be permitted. The MES will
be decided by the IMSC under the Chairmanship of Secretary (Textiles).
(ii)
(iii) (a) The cotton ring spinning units are permitted to install back-up facilities for debottlenecking, viz., cone winding machine, cards, draw frame, speed frame,
blow room etc. without increase in the spindleage, provided the unit is at or
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above the MES level, viable and such investments brings up the unit to the
desired benchmark technology level as a whole.
(b) Auto doffer system for ring frame as a retrofit is covered under the scheme
which may be retrofitted / installed as a new or existing frame irrespective of
any make / manufacturer.
(iv)
(v)
b)
c)
(ii)
Independent wool scouring and combing units will also be eligible for funding
under the TUFS.
d)
(ii)
e)
(ii)
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f)
g)
Carpet industry:
Technology upgradation of existing capacity and expansion / new units with
appropriate eligible technology will be permitted.
4.3
(ii)
4.4
ii)
II.
2.
3.
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Handloom sector is eligible for taking the benefits of TUFS for all machinery
already listed in the GR on TUFS as amended from time to time and permitted
for other sectors including powerloom and mill sector. In handloom sector only
weaving activity is different from powerloom and mill sector while other
activities particularly processing are same.
2.
b)
ii)
In-house weaving preparatory at least matching with the weaving capacity (in
the case of SSI units, weaving preparatory is not essential).
iii)
c)
d)
Knitting units :
Replacement of existing obsolete machinery, capacity expansion or installation of new
units with appropriate technology is permitted under TUFS.
e)
TUFS.
(b)
Since some of the machinery of technical textiles are common the technical
textile units intending to avail of 10% capital subsidy will have to obtain a
registration number from Office of the Textile Commissioner prior to becoming
eligible for 10 percent capital subsidy. To obtain registration number technical
textile units have to submit the information in prescribed format TR I.
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4.5
b)
4.6
DESIGN STUDIO:
(a)
Design studio set up by the textile, readymade garment and jute industry with eligible
machinery / equipments, software and testing equipment is covered under TUFS.
4.7
Processing machinery including essential quality control equipments listed in Annex - F for
fibre / yarn / fabrics / garment / made-up processing and finishing will be eligible.
4.8
JUTE TEXTILES
a)
(ii)
b)
Eligibility conditions for units spinning jute blends will be the same as for cotton
spinning system detailed in para 4.2.
(ii)
Eligibility conditions for units weaving/knitting jute blended fabrics will be the
same as for non-woollen weaving and knitting as detailed in para 4.4.
c)
d)
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(ii)
Quality control and pollution control equipment eligible for TUFS funding will
also be eligible as listed in Annex - G.
e)
f)
Material handling :
The machinery for material handling as listed in Annex - G are essential for
modernising jute units.
5.
(2)
Amendment in the list of machinery in terms of addition / deletion will be done by the
TAMC.
(3)
(4)
The TAMC will also monitor and review the progress of the scheme and apprise the
Ministry and IMSC periodically.
III. LOANS UNDER THE SCHEME
1.
Under the Technology Upgradation Fund Scheme, loans will be provided subject to terms and
conditions given below :
a) Amount of loan :
The assistance will be need-based. There will be no minimum or maximum limit for individual
loans.
b) Promoters contribution :
To be decided by the lending agency on the basis of its existing normal norms.
c)
Rate of Interest :
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(i)
Rupee loan :
Effective rate of interest to the concerned borrower will be five percentage points lower
than the prevailing commercial rates of interest charged by the lending agencies
concerned; the Ministry of Textiles will reimburse the five percentage points under the
scheme. In case of spinning machinery, the interest reimbursement will be limited to
four percentage points.
(ii)
(iii)
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(b)
d)
Other conditions, viz., period of loan, security, conversion option, Debt-EquityRatio etc.
Eligible units will be of minimum economic size. Other conditions will be such as
determined by the lending agency as per its existing normal norms.
e)
f)
Contingency provisions:
The contingency provision ( non-firmed up cost) to the extent of 5% maximum (on
actual basis) may be covered under TUFS in respect of plant and machinery and other
investments eligible under T UFS.
g)
Assistance under TUFS for loan sanctioned by the consortium banks when
some banks of the consortium are not co-opted by the Nodal Agencies:
In cases of consortium finance, the entire project is to be covered under TUFS even if
some of the consortium FIs/banks are not co-opted by the Nodal Agencies. In such
cases the interest reimbursement claim to the Nodal Agencies may be routed through
the co-opted bank including the claim in respect of the loan disbursed by non co-opted
banks. The co-opted bank would ensure that the project was meeting the technology
and other norms prescribed under the Scheme.
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h)
Transferring the TUFS loan from one bank / FI to another bank / FI as well as
closing down one term loan account under TUFS and availing of fresh term loan:
The outstanding principal amount under TUFS loan account from one bank / FI can be
transferred to another bank / FI subject to the condition that portfolio (i.e. balance
principal amount) remains unchanged and the overall repayment period does not
exceed 10 years. However, this facility will be provided three times during the tenure
of the loan.
i)
Conversion of rupee term loan into foreign currency loan and vice-versa:
Conversion of rupee term loan (RTL) into foreign currency loan (FCL) and vice-versa
on annual basis is permitted under TUFS. The base rate of exchange will be the rate
prevailing on the date of conversion of rupee term loan into FCL. The tenure of the
loan amount will remain the same subject to the 10 years repayment period and
availability of foreign currency line of credit with the lending agency.
j)
k)
l)
subscribed by NAs / co-opted PLIs and covered under the TUFS to another nodal
agency/co-opted PLI once in the life time of the NCDs has been permitted. The nodal
agencies must however ensure that NCDs are transferred to NAs or co-opted PLIs and
NCDs transferred to other investors in the market should not be given interest
reimbursement.
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m)
n)
o)
Approval of nodal agency for the loan sanctioned by co-opted PLI with their own
prudential norms without effecting the technology norms under TUFS:
The projects under TUFS which are sanctioned by co-opted PLIs as per their own
prudential norms and in compliance with the technology norms of TUFS should be
approved by Nodal Agencies.
p)
Coverage of weak but potentially viable textile and jute units under TUFS:
Relaxation in norms for cash profit, promoters margin, debt equity ratio and
revaluation of assets could be considered by Financial Institutions and Banks while
preparing restructuring proposals for textile and jute units.
q)
r)
The banks/FIs which have advanced loans to textile units eligible for 5% / 4% as the
case may be interest reimbursement will accept the repayment of loan if made with in
the prescribed date without the 5% / 4% as the case may be interest reimbursement
which it will get from the nodal agency. On the amount reimbursed, the Banks/FIs
may, however, charge interest at PLR from the unit till it is received from the nodal
agency.
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s)
t)
u)
Margin Money Subsidy @ 15% under TUFS (MMS@15% -TUFS) for SSI Jute &
Textile sector Operational Guidelines:
MMS-TUFS@15% for SSI Jute & Textile sector will be now operationalised by Office of
the Textile Commissioner in addition to lending agencies and detailed operational
guidelines are at Annex - Q.
v)
Additional incentive in the form of 10% capital subsidy for the processing
machinery, garmenting machinery and technical textile machinery under TUFS:
The detailed operational guidelines are at Annex - R.
w)
One of the main requirements for sanction of assistance under the TUF Scheme will be the
availability of competent management to the unit concerned to carry out the modernisation programme
and also to manage the operations of the unit efficiently. Towards this end, Lending agencies may
stipulate conditions relating to broad-basing of the Board, appointment of senior technical/financial
executives, professionalisation of the management and constitution of such committees as may be
considered necessary.
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Nodal Agencies
- IDBIL
- SIDBI
2. The nodal agencies have co-opted other All India Financial Institutions (AIFIs)/ state financial
corporations (SFCs) / state industrial development corporations (S IDCs) and commercial /
cooperative banks in the scheme for sanction and disbursement of loan so as to have a better
reach. However, there will be no erosion in the rate of the interest reimbursement available to the
borrower on account of such linkages. A list of co-opted lending agencies is at Annex S.
3. Applications for assistance under the Fund Scheme may be submitted in the prescribed form
available from the concerned nodal agencies or co-opted AIFIs/SFCs/SIDCs/ commercial/cooperative banks, as the case may be.
4. A special cell will be set up by the financing institutions for expeditiously processing loan
applications.
5. The nodal agencies will furnish periodically information in respect of sanction and disbursement of
the loans and other related information to the Textile Commissioner. Such information in respect of
the co-opted AIFIs/ SFCs / SIDCs/ commercial/co-operative banks will be co-ordinated and
furnished by the nodal agency concerned to the Textile Commissioner.
6. Government has approved the placement of funds with the Nodal Agencies towards reimbursement of 5% interest to the borrowers other than that of spinning sector and 4% interest for
spinning sector under the scheme on a quarterly basis in advance but not earlier than 15 days of
the due date. In respect of foreign currency loan, exchange rate erosion not exceeding 5% p.a. or
4% p.a. as the case may be will be covered. This will ensure the full reimbursement of 5% interest
or 4% interest as the case may be to the borrower without any dilution/erosion due to delay.
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7. In respect of the co-opted financing institutions, nodal agencies will be responsible for verifying the
interest reimbursement claims of the co-opted AIFIs/SFCs, SIDCs and commercial/co-operative
banks and actual disbursement thereof.
VII. NODAL BANKS
(i)
Additional 13 nodal banks have co-opted under TUFS for the cases financed by them. The
identified 13 banks have consented to become nodal banks under TUFS. The names of the 13
banks are as under :
(ii)
1)
2)
Bank of India
3)
EXIM Bank
4)
5)
6)
Andhra Bank
7)
8)
9)
Bank of Baroda
10)
ICICI Bank
11)
Canara Bank
12)
13)
Indian Bank
The nodal banks will determine the eligibility and release the TUFS benefit in respect of all the
cases financed by them under TUFS including non-SSI, SSI and 10% capital subsidy for
specified processing machinery / garmenting machinery / technical textile machinery.
The
State Bank of India will also function as nodal bank for its seven associate banks.
(iii)
The Nodal Banks shall examine eligibility of cases from TUFS-angle before a project becomes
eligible to the benefit of interest reimbursement under TUFS.
(iv)
In case of consortium financing, the consortium leader shall assess eligibility of the project
under TUFS for itself and also for other members of the consortium, provided the consortium
leader is a nodal bank.
In case consortium leader is not a nodal bank, the nodal bank with
major share of term loan shall assess the eligibility of the project and also determine eligibility
of 10% capital subsidy for specified processing /garmenting / technical textile machinery.
(v)
In case of financing by multiple banks, the bank with major share of term loan shall assess
eligibility of the project under TUFS for itself and also for other banks, provided the said bank is
a nodal bank.
In case bank with a major share of term loan is not a nodal bank, the nodal
bank with major share of term loan shall assess the eligibility of the project and also determine
eligibility of 10% capital subsidy for specified processing /garmenting / technical textile
machinery.
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(vi)
In case of consortium financing / financing by multiple banks, the individual banks shall
administer interest reimbursement to their assisted units, provided the banks are nodal banks.
However, IDBIL / SIDBI shall administer interest reimbursement to those banks of the
consortium / multiple banking arrangement which are not nodal banks, for which purpose IDBIL
/ SIDBI shall be endorsed / forwarded a copy of eligibility certificate by the nodal bank, issued
to such banks.
(vii)
Nodal Banks shall submit annual forecast of funds required, about 6 months in advance of
budget, to Ministry of Textiles (MoT), Government of India (GoI), New Delhi, for necessary
budgetary allocation, followed by submission of quarterly interest reimbursement claims to
MoT, GoI, New Delhi, 1-1/2 to 1 month in advance of due date (viz., 1st July / 1st October / 1st
January / 1st April) based on principal outstanding amount in respect of their assisted cases, for
actual release of funds by MoT, GoI, New Delhi.
(viii)
Nodal Banks shall submit utilisation certificate to MoT, GoI, New Delhi in prescribed formats on
monthly / quarterly basis before submission of next quarterly claim in the prescribed format.
The co-opted PLIs will submit the utilization certificate to Nodal Agencies and to Office of the
Textile Commissioner before submission of next quarterly claim in the prescribed format.
(ix)
As funds will be placed by MoT, GoI, New Delhi, with Nodal Banks in advance, they shall open
a dedicated account for keeping the funds so released by MoT, GoI, New Delhi.
(x)
Nodal Banks shall maintain requisite database of company / project-wise eligibility established /
pending references for TUFS-eligibility / interest reimbursement effected, etc. for information to
Office of the Textile Commissioner, Mumbai / MoT, GoI, New Delhi, and parliament questions,
if any.
(xi)
The Nodal Banks will implement an on-line system for expeditious clearance of the TUFS
cases and releasing of TUFS subsidy to the beneficiary.
(xii)
IDBIL / SIDBI would render advisory services to Nodal Banks during the formative stage and
will organise work shops for the benefit of the nodal banks on demand basis.
(xiii)
In case of any doubts regarding eligibility of a case or any other related issue nodal banks may
contact IDBIL / SIDBI or office of the Textile Commissioner for guidance / assistance.
(xiv)
The nodal banks will decide the TUFS eligibility of a case within 4-6 weeks of sanction of the
loan, subject to the condition that interest reimbursement is released to the TUFS beneficiary
within one / two days of payment of interest.
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VIII. RELEASE OF FUNDS TO THE NODAL AGENCIES / NODAL BANKS / CO-OPTED PLIs
(i)
The release of funds under TUFS has been linked to the submission of data in the Format (I to
IV) prescribed by the Office of the Textile Commissioner. The funds will not be released until
the unit-wise data in the prescribed format is submitted to the Office of the Textile
Commissioner.
(ii)
All the Nodal Agencies / Nodal Banks / co-opted PLIs receiving funds under TUFS shall
maintain a separate Bank Account for the purpose.
(iii)
Balance amount available with the Banks may be indicated and the interest accrued thereon
may be credited to the Bank Account opened for the purpose.
(iv)
Interest accrued by the banks under the Scheme may be deposited every quarter by the Banks
to the Pay and Account Office, Ministry of Textiles. The Demand Draft for such an amount may
be drawn in favour of the Pay and Accounts Officer, Ministry of Textiles, New Delhi.
(v)
Next release of funds will be made only after the receipt of the Utilisation Certificates from the
concerned Banks.
(vi)
Funds to the nodal banks will be paid only through the Electronic Clearing Service(ECS)/Real
Time Gross Settlement(RTGS). For this each nodal bank will provide details such as name of
the bank, branch, account no., MICR code of the bank etc. to the Ministry of Textiles.
(vii)
The above guidelines for release of funds are also applicable to the co-opted PLIs of the SIDBI
and IDBIL.
IX. MONITORING/APPRAISAL MECHANISM
The Inter-ministerial Steering Committee under the Chairmanship of Secretary (Textiles) will lay
down norms for a monitoring and appraisal mechanism for effective implementation of the scheme and
may set up an appropriate machinery therefore.
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ANNEX - A
LIST OF THE GINNING & PRESSING MACHINERY ELIGIBLE UNDER TUF
SCHEME
Sr.
No.
Item
1.
Ginning machines
Precleaner
Lint Cleaner
Kapas Conveyor
System
Lint Conveyor
System
Minimum requirement
Large Unit
Small Unit
24 DRs of normal size/22 extra- 12 DRs of normal size / 11
long DRs /18 jumbo DRs with extra-long DRs /9 jumbo DRs
Autofeeder/3 saw gins (90 saws ) with Autofeeder/ 1 or 2 saw gins
or equivalents with a processing with
equivalents
processing
capacity of 6-8 bales per hour.
capacity of 3-4 bales per hour.
Cleaner with 4 or more beater Cleaner with 4 or more beater
cylinders/rolls with capacity to cylinders /rolls with capacity to
suit the processing speed of the suit the processing speed of the
ginning machines.
ginning machines.
Cleaner with 3 or more beater
cylinders/rolls with capacity to
suit the processing sped of
ginning machines
Mechanical
/
Pneumatic
Conveyor
(i) from Gins to Lint cleaner;
(ii) from Lint cleaner to each
Pala Hall and
(iii) from each Pala Hall to
a) Bale Press Hall in case
of existing conventional
Bale Press
b) Bale Press box through
Lint slide and Pusher
Mechanisms in case of
modern Bale Press
(direct feeding of cotton from
Lint Cleaner to Press box
permitted)
26
Sr.
No.
Item
Bale Press
Conveyor for
Seed
Humidifier/
Moisturizer
Minimum requirement
Large Unit
Small Unit
Single
stage
of
hydraulic, Single
stage
of
hydraulic,
autotramping Bale Press with autotramping Bale Press with
Lint slide and Pusher mechanism Lint
slide
and
Pusher
for direct feeding of lint into the mechanism for direct feeding of
press box,. Conventional water lint into the press box,.
hydraulic,
two-stage
presses Conventional water hydraulic,
without auto tramping facility two-stage presses without auto
will, however, be permitted if tramping facility will, however,
they already exist.
be permitted if they already
exist.
Automatic
Automatic
Conveyor from gins to Seed
Conveyor from gins to Seed
Platform
Platform
In Gin Hall
In case of Central Platform,
2 Benson fans or adequate
number of nozzles.
In Pala Halls
2 Benson fans in each Hall or
adequate number of nozzles.
In Gin Hall
In case of Central Platform,
2 Benson fans or adequate
number of nozzles.
In Pala Halls
2 Benson fans in each Hall or
adequate number of nozzles.
In case of unit not having tube In case of unit not having tube
well in the premises:
well in the premises:
Overhead tank and / or sump
(capacity 1.25 lakh litres) / water
tank (1.50 lakh litres) with a
minimum
of
10
hydrants
strategically located, hose pipes
with nozzles and a standby
diesel pump besides an electric
pump.
9.
27
Sr.
No.
10
11
12.
Item
Underground Wiring
Weigh Bridge
Minimum requirement
Large Unit
Small Unit
All high tension and low tension All high tension and low tension
wires/cables to be under-ground
wires/cables to be under-ground
Capacity;
20
tons/5
tons
depending on local need (Not
required if the facility is available
nearby)
Capacity;
20
tons/5
tons
depending on local need (Not
required if the facility is
available nearby)
Optional machinery
All foreign fibre detectors / removers.
13.
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
28
ANNEX B-1
29
(a)
(b)
machines.
Sauter Automatic Plant Controls for the Humidification Plant for controlling
(c)
(d)
doff according to a set pattern, so that yarn breakages are minimized etc.
Premier Ring Eye under Information Technology, since the equipment
monitors the yarn breaks in a Ringframe, identifies rogue spindles which give
more number of breaks, indicates the production of the Ringframe through
computer.
21. Air Compressor 15 H.P. and above.
22. Direct double yarn twisting attachment at Ring Frame (e.g. Elitwist attachment for
spinning machine).
b. MACHINERY FOR FLAX SPINNING
1. Flax hackling machine
2. Drawing Machine for Flax
3. Roving machine for Flax
4. Wet ring frame for Flax
5. Auto Winding machine for Flax
c. MACHINERY FOR SILK REELING AND TWISTING.
1. Multiend silk reeling machine (Automatic or Semi Automatic).
2. Silk twisting machine (Two for One or Three for One or up twisters).
3. Winding machine.
4. Conveyer cooking machine.
d. MACHINERY FOR SILK WASTE PROCESSING / SPINNING
1. Silk Waste processing .
i) Cocoon opener.
ii) Computerised silk waste cutting machine.
iii) Degumming machine.
iv) Drying chamber.
v) Carding machine.
vi) Preparatory machine.
2. Silk opener.
3. Automatic hopper feeder / Blending hopper feeder/ Feeder with automatic quality
contorl (either with automatic quality weight or volume control / combined
automatic weight ) and volume control for silk card.
4. Carding Set.
5. Rectilinear-comber.
6. Vogoroux top / Silver printing machine.
7. Top to fibre / Top converting machine
8. Top bump press.
9. Draw frame / Roving frame/ Automatic rubbing frame / bobbiners / Finisher.
30
10. Self twist spinning machine / Sirospinning (2 ply spinning ) machine / Core Spinning
Machine.
11. Fancy Yarn twisting and pattern machine.
12. Jumbo hank reeling machine.
13. Yarn brushing machine.
14. High speed inter-setting rotary / Chain pin drawing sets / Gill boxes.
15. Fibre opening and blending machine.
16. Raising / Brushing Machine.
17. Automatic and semi-automatic reeling machinery for mulberry and tassar.
18. Machines for twisting, Reeling, Brushing of yarn samples and small quantities of
plain and fancy yarn.
19. Two Chamber stenter for processing of silk fabrics.
e.
f.
31
j.
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
32
ANNEX B-2
LIST OF MACHINERY ELIGIBLE UNDER TUF SCHEME FOR WOOL
SCOURING, COMBING AND CARPET INDUSTRY
a. WOOL SCOURING, COMBING AND SPINNING MACHINERY FOR WORSTED
SYSTEM OF SPINNING.
1. Sophisticated wool scouring machine with or without carbonizing plant / line .
2. Fibre opening/blending/cleaning/dusting machine.
3. High production worsted cards capable to give above 50 kg. production per hour.
4. High speed intersecting Gill box/Chain Gills/Rotory Gills/vertical Gill box of
delivery speed of minimum 400 mtrs. per minute.
5. Drawing set /Roving frame /Rubbing frame of delivery speed of 200 mtrs. per
minute.
6. High speed worsted ring frames of 12000 rpm & above with or without siro spinning
attachment /or auto doffers.
7. Jumbo Spinning Frames.
8. High speed rectilinear comber of 210 nips per minute and above.
9. Two-for-one/Three-for-one twisters operating at speeds of minimum 8000 rpm &
5000 rpm respectively.
10. Yarn conditioning machine.
11. Assembly winding machine with micro process control.
12. Precision cone winding machine.
13. Air Splicers.
14. Automatic waste extraction system for card, gill box, comber and ring frame with or
without waste recovery/recyling machinery.
15. Baling press for wool combing.
c. MACHINERY FOR WOOLLEN SPINNING SYSTEM.
1. Wool scouring machine.
2. High production carding machine.
3. Gill Box for semi-worsted yarn.
4. Speed frame.
5. Ring frame.
6. Modern spinning system (DREF).
7. Winding machine.
8. Automatic waste extraction system for card with or without waste recovery / recyling
machinery.
d. MACHINERY FOR SHODDY SPINNING SYSTEM.
1. Continuous garneting, rag tearing & pulling and carding machine.
2. Ring frame.
3. Winder.
e. MACHINERY FOR CARPET INDUSTRY.
I.
33
(i)
III.
Steam dryer
Spectrophotometer
Space Dyeing
Chem-set machine / twistset
Tape scour
Sample dyeing machine
Ancillary items
a. Water Treatment / Softening Plant
b. Carving/ Embossing/ Shearing equipment
c. Vacuum suction for cleaning of carpet
Machinery for woven carpet
(1) Axminster weaving
a. Spool gripper
b. Jacquard gripper
(2) Wilton weaving
a. Wireloom weaving / Brussels weaving
b. Face to face weaving
IV.
Pass tufting
Needle felting
Fusion bonding
Carpet shearing & J box / J scrays
Carpet back coating / coating & drying line for latexing & finishing of
carpets
Carpet overlocking / overedging machine
Carpet label machine
Carpet winding / baling machine
Carpet inspection / rubbing machine
Carpet fringing machine
Carpet printing machine
Carpet tile backing / coating / latexing & cutting line
M-tuft (Modra-tuft)
Kibby
Ned graphic
Weave link
34
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
35
ANNEX - C
a. LIST OF MACHINERY ELIGIBLE UNDER TUF SCHEME FOR VISCOSE
FILAMENT YARN AND VISCOSE STAPLE FIBRE MANUFACTURING .
1.
2.
3.
4.
5.
Portable systems for injection of pigments for viscose dope complete with stirred
vessel, metering pumps, instruments and control panel.
6.
7.
8.
9.
STATIMAT-4
or
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
Portable density meter.
19. Eco Label Certification - Testing equipment for eco parameters :
(i)
(ii)
(iii)
Perspirometer.
Wash wheel machine.
36
(iv)
(v)
(vi)
(vii)
(viii)
37
38
Any other machine considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
39
ANNEX - D-1
LIST OF MACHINES ELIGIBLE FOR WEAVING/KNITTING UNITS UNDER TUF
SCHEME
a.
40
450 mtrs. per minute and above for other shuttleless looms. For SSI units, the
weft ni sertion rate of Rapier shuttleless looms may be 250 mtrs. per minute
and above.
3. Automatic shuttle loom.
4.
5.
6.
7.
8.
9.
10.
FOR KNITTING :
1. High speed circular knitting machine.
2. High speed socks knitting and gloves knitting machines with or without electronic
jacquard.
3. Computerised flat bed knitting machine with minimum speed of 11 revolutions
per minute.
4. Warp/Raschel knitting machine.
5. High speed computerised warping machine for knitting.
6. Computerised label making machine.
7. Computerized Strap (Collar/Cuff) Flat Bed Knitting Machine.
8. Modern industrial humidification system for controlling relative humidity &
temperature.
9. Air Compressor 15 H.P. and above.
d.
1.
HANDLOOM:
Semi-automatic /ordinary frame handloom with minimum width of 52, with
or without dobby / jacquard and benchmarked technology features, viz., takeup motion, smooth sley movement, bigger shuttle and bobbin (minimum 4),
negative let-off motion. It may include attachments such as multiple weft
butta mechanism, pick & pick sliding shuttlebox, solid border weaving
41
3.
Fly shuttle frame loom fitted with let off motions like lever and weight let off
motion/special spring motion/rope let off motion/weight system/spring system.
4.
Fly shuttle frame loom fitted with take up motion like ratchet & pawl motion/3
wheel Ichalkaranji
type motion/5 wheel take up motion without emery
roller/7 wheel take up motion.
5.
Note: In addition, handloom units may also be provided with piano card punching
machine/electronic card punching machine.
6. Winding machine with multi spindle for preparation of pirns/bobbins/drums
operated by hand/peddle/power.
7.
High Speed Doubling machine having spindle fitted on bolster with ball
bearing.
8.
The mobile textile quality testing equipment only for handloom sector and
capable of testing all of the following :
Colour fastness to washing at about 40 degree celsius.
Colour fastness to crocking/rubbing
Shrinkage
Ends-Picks per inch
Count of yarn
Percentage crimp of yarn
Fabric width, and
Grams per Square meter etc.
e.
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
42
ANNEX -D-2
LIST OF MACHINERY / EQUIPMENT ELIGIBLE UNDER TUF SCHEME FOR
NONWOVENS / TECHNICAL TEXTILES
a. Spinning
1)
2)
Friction spinning
Accessories for spinning specialty yarns like aramide
and high performance yarns
Doubling or twisting machine for industrial yarn
3)
b. Weaving Preparatory
1)
d. Knitting
compression
43
e. Processing
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
g. (i)
44
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45
(ii)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
(iii)
(iv)
h. Finishing machines:
1.
Hot melt cold glue applicators for coating
2.
Ultrasonic slitting machines/edge sealer
3.
Brazing machine with torch(for hot air)
4.
PLC operated system with servo drives for measurement/control of tension
and temperature
5.
Stitching machines of all types
6.
Film calendering machine
7.
Automatic packing and inspection machines
8.
Heatset oven with stenter facility
9.
Clicking press
10.
Pilot/lab coating line
11.
High pressure pump for water jet cutting system
12.
Robotic waterjet cutting system
13.
Robot for water jet cutting system
46
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
i.
13.
14.
15.
47
16.
17.
Machine to compress
Abdominal sponge making machine
18.
Note : The above machinery is only eligible for non-wovens and convertors of
non-wovens into finished products.
j. Testing and Evaluation machinery:
1.
Speciality testing equipments and rigs for T.T. (Technical Textiles) and
T.T.P. (Technical Textile Products)
2.
Universal textile testing machine 10 tonnes/20 tonnes
3.
Index puncture resistance tester
4.
Co-efficient of friction apparatus
5.
Particle size determination apparatus
6.
Gradient ratio test apparatus
7.
Long time flow apparatus
8.
Feltperm
9.
Point paper design system with EWE
10.
Weatherometer
11.
Yarn shrinkage and shrinkage force testing machine
12.
Viscometers
13.
Data loggers for machine monitoring and flex resistance tester
14.
Tear testing machine
15.
Cold crack resistance testing
16.
Thickness gauge
17.
Water repellency testing machine
18.
Waterproofing testing machine
19.
Fire resistance testing equipments
20.
Accelerated ageing testing oven
21.
Rainwater tests equipment continuous water spray test and I.R. spectrometer
etc.
22.
All types of weighing balances / scales
23.
Abrasion testers
24.
Colour matching cabinets
25.
Colour fastness testers
26.
Accelerated creep tester
27.
Air permeability tester
28.
Hydro static puncture test for geo membrane
29.
Hydraulic grip
30.
Projection microscope
48
Any other machine considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
49
ANNEX - E
LIST OF MACHINERY ELIGIBLE UNDER TUF
SCHEME FOR RMG/MADE-UPS UNITS
a.
50
51
78.
79.
80.
81.
82.
83.
84.
85.
c.
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TMC).
52
ANNEX F
LIST OF PROCESSING MACHINERY ELIGIBLE FOR 5% INTEREST SUBSIDY
UNDER TUF SCHEME
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
53
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
54
ANNEX - G
55
3.
4.
5.
6.
7.
f. FOR FINISHING
1.
2.
3.
4.
5.
6.
7.
8.
9.
Cutting machine
Lapping & Measuring machine
Sewing machine
Branding/Printing machine
Baling press
High Pressure Roll Up Machine
Calender M/c
Crisping M/c.
Automatic bag making M/c
Feed lattice
Conveyor system
Turn table.
Fork lifter.
Tractor.
Jib Crane
EOT (Electrically Operated Track) Crane
Beam lifter
(ESSENTIAL) :
56
i. PROCESSING MACHINE S
1.
Singeing machine
3.
Pressure Kier/Jumbo jigger
5.
Pad batch / Mangle
7.
Semi-automatic / automatic Jiggers
9.
Soft flow dyeing
11.
High temperature and high pressure
dyeing
13.
Multicylinder
drying
range/
15.
Stenter
Semi-automatic /Automatic
17.
19.
21.
Calendering
Thermo Pac with all type of fuels /
flat
2.
4.
6.
8.
10.
12.
Shearing/croping
Cloth/yarn mercerising
Winch
Jet dyeing
Cabinet dyeing machine (for yarn)
Macro extracter
1.
2.
3.
4.
5.
6.
7.
8.
57
9.
10.
11.
12.
13.
14.
15.
16.
k.
Modern
Industrial
Humidification
system
Count balance
Laundero meter
Yarn twist tester
Yarn appearance tester
(manual/automatic)
Ballistic raw jute strength tester
Fire retardancy tester
Latexing tester
Water proofing
for
controlling
relative
humidity
and
temperature.
l.
58
ANNEX H
LIST OF MACHINERY ELIGIBLE UNDER TUF SCHEME FOR ENERGY SAVING
PROCESS CONTROL EQUIPMENTS FOR VARIOUS SECTORS
a. Energy saving and process improvement instruments / attachments:
1. Auto cono : - Multichannel Pre-set yarn length monitoring and controlling system for
ring spinning, open end spinning, drawing frames, winders, twisters, texturising and
crimping machines.
2. Loom Data Monitor
3. Fabric defect analyzer (Micro processors based system to record all types of defects in
the fabrics).
4. Cotton contamination analyzer
5. Online / Offline Moisture indicator and automatic controller for textile units.
6. Online system for monitoring quality and quantity of steam water and power for
qualitative and economical consideration in various manufacturing processes.
7. Knitting data and defect monitoring system.
8. Web guiding system
9. Stop Motion for carding, comber machine, roving frames / speed frames, drawing
frames and knitting frames.
10. Weft Accumulator for shuttleless weaving machines
11. Warp Stop Motion, Yarn Inspector for yarn break / faults during warping and weaving
process.
12. Production Data Monitor having electronic multi shift counter with predetermining
measured length, control and pre-signal warning, designed for spinning machines both
for ring and open-end, draw frame, twisters doublers and cards, knitting machine,
shuttleless loom, warping machine, sizing machine, shearing machine and fabric
processing machines.
b. Promise Pro-Win range of online production monitoring and speed systems for
spinning machines
c. Any other machinery considered appropriate by the Technical Advisory -cumMonitoring Committee (TAMC).
59
ANNEX I
a.
Main machinery
S.No.
b.
1.
2.
3.
Dobby
4.
Jacquard
5.
Pirn Winding
6.
7.
Warping Machine
8.
Sizing Machine
c.
Type of Machinery
Accessories
Warp Beam (1)
Cloth Roller (1)
Motor (1)
Heald Frame (6 Nos. for tappet
and 16 for dobby)
Heald Wires (8000)
Drop Pins (6000)
Shuttle (1 No.)
Price (Rs.)
6000.00
1000.00
10000.00
12900.00 (for tappet)
34400.00 (for dobby)
6666.00
5000.00
1500.00
Accessories
Warp Beam (1)
Cloth Roller (1)
Heald Frame (6 Nos. For
tappet and 16 for dobby)
Heald Wires (8000)
Drop Pins (6000)
Price (Rs.)
6000.00
1000.00
12900.00 (for tappet)
34400.00 (for dobby)
6666.00
5000.00
60
d.
Other equipments
New Humidification Plant/ Air Compressor/ De-mineral Plant or Reverse Osmosis Plant,
beam gaiting and knotting machine are also eligible subject to a maximum of 10% of the
total cost of the eligible machinery for a project. However, subsidy for a project under the
scheme will be restricted to Rs.20 lakh.
61
ANNEX J
LIST OF PROCESSING MACHINERY ELIGIBLE UNDER TUF SCHEME FOR
10% CAPITAL SUBSIDY AND 5% INTEREST REIMBURSEMENT
1)
2)
Process house and dye Kitchen management system for whole process house.
3)
4)
PLC based yarn / fabric Singeing machine with auto mixing of air & fuel for
temperature and flame control with or without pre and post brushing and desizing
unit.
5)
6)
7)
8)
Fully automatic Yarn / fabric mercerizing machine with Caustic Recovery Unit
(without caustic recovery unit if unit already has it)
9)
10)
Baloon Padder
11)
Slit opener with open width squeeze mangle for knitted fabric.
12)
13)
14)
15)
16)
PLC based Package Dyeing machines (cheese, cone. Tops, fibres, dyesprings, yarn
beam)
17)
PLC controlled Fully Automatic Flat Bed Printing machine with pneumatic blanket
control
18)
19)
20)
21)
Compact continuous dyeing and finishing machine for tapes / narrow width woven
fabric
62
22)
Open width Pad-dry and / or Pad-Steam continuous dyeing range with micro
processor based energy control and water monitoring
23)
24)
25)
Digital / laser / len engraving / screen making system for rotary screens
26)
PLC based fully automatic Rotary screen printing machine with magnetic / air flow
squeegee system, on-line washing arrangement, quick change over facility, automatic
design setting
27)
28)
29)
30)
31)
32)
33)
34)
35)
Continuous weight reduction machine through micro wave technique (for Polyester
goods only)
36)
37)
Multi cylinder drying range with individual cylinder drives with or without padding
mangle
38)
39)
40)
41)
42)
43)
44)
45)
46)
47)
48)
63
49)
50)
51)
AC invertor driven
report generator
52)
53)
PLC based oil / gas fired boiler (Steam /Thermic fluid) with automatic control on
combustion efficiency
54)
Effluent Treatment Plant (ETP) upto secondary and / or tertiary treatment facilities
55)
56)
On line/Off line Chemical concentration indicator & controlling system for textile
processing machines.
57)
Fabric Profile System to monitor and control the speed of stenter machine while heatsetting/drying/finishing for process and quality improvement.
58)
59)
60)
61)
On line monitoring system for treated liquid effluent quality and quantity.
62)
63)
64
ANNEX -K
LIST OF MACHINERY / EQUIPMENT ELIGIBLE FOR 10% CAPITAL SUBSIDY
UNDER TUF SCHEME FOR TECHNICAL TEXTILES INCLUDING
NONWOVENS
a. Spinning
1)
2)
Friction spinning
Doubling or twisting machine for industrial yarn
b. Weaving Preparatory
1)
1)
2)
3)
4)
5)
6)
7)
d. Knitting
e. Processing
1)
2)
3)
4)
5)
6)
compression
machine
and
65
table).
6. Back Coating Lines
7. Braiding machinery
8. Machinery for manufacture of clay liner
9. Machinery for manufacture of prefabricated vertical
drains / prefabricated wick drains
g. (i)
Non-woven textile manufacturing machines:
Complete production lines or the component / parts forming the production
line for the manufacture of following non-wovens upto rolled goods
preparation and packing, viz.,
(a) Chemically bonded non-woven
(b) Stitch bonded non-woven
(c) Spun bonded non-woven
(d) Melt blown non-woven
(e) Spun bond melt blown non-woven (SMS non-wovens)
(f) Needle punch non-woven
(g) Thermal bond non-woven
(h) Spun lace non-woven
h. Finishing machines:
1. Hot melt cold glue applicators for coating
2. Ultrasonic slitting machines/edge sealer
3. Brazing machine with torch(for hot air)
4. PLC operated system with servo drives for measurement/control of tension and
temperature
5. Film calendering machine
6. Automatic packing and inspection machines
7. Heatset oven with stenter facility
8. Pilot/lab coating line
66
12.
13.
14.
67
15.
16.
Machine to compress
Abdominal sponge making machine
17.
Note : The above machinery is only eligible for non-wovens and convertors of
non-wovens into finished products.
j. Testing and Evaluation machinery:
1. Speciality testing equipments and rigs for T.T. (Technical Textiles) and T.T.P.
(Technical Textile Products)
2.
Universal textile testing machine 10 tonnes/20 tonnes
3.
Index puncture resistance tester
4.
Co-efficient of friction apparatus
5.
Particle size determination apparatus
6.
Gradient ratio test apparatus
7.
Long time flow apparatus
8.
Feltperm
9.
Point paper design system with EWE
10.
Weatherometer
11.
Yarn shrinkage and shrinkage force testing machine
12.
Viscometers
13.
Data loggers for machine monitoring and flex resistance tester
14.
Tear testing machine
15.
Cold crack resistance testing
16.
Thickness gauge
17.
Water repellency testing machine
18.
Waterproofing testing machine
19.
Fire resistance testing equipments
20.
Accelerated ageing testing oven
21.
Rainwater tests equipment continuous water spray test and I.R. spectrometer
etc.
22.
Abrasion testers
23.
Colour matching cabinets
24.
Colour fastness testers
25.
Accelerated creep tester
26.
Air permeability tester
27.
Hydro static puncture test for geo membrane
28.
Hydraulic grip
29.
Projection microscope
k. Any other machine considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
Note : Since some of the machinery eligible for technical textiles can also be used by the
other segments of the industry, the technical textile entrepreneurs intending to avail of 10%
68
capital subsidy under TUFS will have to get themselves registered with Office of the Textile
Commissioner and obtain a registration number. In other words, the registration with Office
of the Textile Commissioner will be the pre-requisite for availing of 10% capital subsidy by
technical textile units.
69
ANNEX L
4.
sewing
5.
6.
7.
8.
70
71
Any other machinery considered appropriate by the Technical Advisory-cumMonitoring Committee (TAMC).
Note : The readymade garment units are only eligible to avail of the benefit of 10%
capital subsidy on the above machinery.
72
ANNEX M
73
Testing equipment
1. Loop length tester
2. Digital twist tester
3. Abrasion tester
4. Fabric checking machine
5. Pilling tester
6. Tearing strength tester
7. Stiffness tester
8. Colour matching cabinet
9. Light fastness tester
10. Computer colour matching system
11. Polarizing projection microscope
vendors,
74
Any other machine considered appropriate by the Technical Advisorycum-Monitoring Committee (TAMC).
75
ANNEX N
COMPOSITION AND FUNCTIONS OF TECHNICAL ADVISORY-CUMMONITORING COMMITTEE (TAMC)
1. Composition of the Committee
1.
Chairman
2.
Member
3.
Member
4.
Member
5.
Member
6.
President,
Mumbai
(ISA),
Member
7.
Member
8.
Member
9.
Member
10.
President,
Kolkata
Member
11.
12.
Indian
Indian
Spinners
Jute
Mills
Association
Association
(IJMA),
of
Member
Export
Member
13.
Member
14.
Chairman, Apparel
(AEPC),Gurgaon
Council
Member
15.
Member
16.
Fashion
Member
17.
Member
18.
Member
19.
Member
Export
Association
and
Promotion
Institute
of
76
Member
21.
Member
22.
Member
23.
Member
24.
Member
25.
Member
26.
Member
27.
Member
28.
Member
29.
Member
30.
Member
31.
Member
32.
Member
33.
Member Secretary
Any other technical expert, industry representative or the representatives of the coopted banks/SFC/SIDCs/twin function IDCs may be invited as special invitees as and
when required.
2. Functions:
The functions of the Technical Advisory Committee will be as follows:
i) Determine eligibility of the machinery under TUFS.
ii) To interpret and clarify the various provisions of the GR on TUFS.
iii) To review the progress of the scheme and critically analyse the operation
thereof, at a macro-level and sort out administrative and operational
bottlenecks.
iv) To coordinate and sort out the inter bank and PLI-Nodal Agency issues.
v) To keep the Inter-Ministerial Steering Committee (IMSC) apprised of the
direction and extent of the implementation of the scheme.
3.
4.
The Committee would keep the Government apprised of the decisions taken by
them regarding technical and other issues relating to the scheme.
5. Miscelleneous :
i)
77
78
ANNEX O
OPERATIONAL GUIDELINES FOR DEFERRED PAYMENT GUARANTEE (DPG)
SCHEME
(i)
The assistance under DPG will cover major equipments and also cases involving both
DPG and normal term loan in a single project. In all cases, however, the project perse has to meet the technology and other eligibility norms of the TUFS.
(ii)
The margin money in case of equipment exclusively under DPG, shall be assumed as
20% for the purpose of interest subsidy under TUFS. However, in respect of cases
involving both DPG and term loan, margin money may be taken based on project cost
excluding DPG component.
(iii)
The period of the deferred payment will be from the date of execution of the
bills/promissory
(iv)
Only rupee loan will be covered under the TUFS and buyers bank who is giving the
guarantee has to be bank co-opted under TUFS.
(v)
(vi)
The bills drawn by the seller will be accepted by the purchaser/user and guaranteed by
the purchaser/users bank.
(vii)
These bills/promissory notes are then delivered to the seller, who gets them
discounted with his banker, thus realising the cost of the machinery;
the discount
payable by him to his banker is included in the amounts of the bills by way of interest
for the period of deferred payment.
(viii) The buyers bank will retire the bills on the respective dates by debiting the account of
the buyer and for the full face value of the bill including principal amount and interest
79
on deferred payment.
agency, the reimbursement amount will be refunded by the buyers bank to the buyer.
(ix)
After ensuring compliance with all the provisions of TUFS, the buyers bank will
approach respective nodal agencies for interest reimbursement. The buyers bank will
be required to furnish complete details i.e., invoice value of equipment, discounting
rate (%), usance period (months) for each bill, periodicity and entire repayment
schedule indicating break-up of principal components for the entire period of
repayment.
80
ANNEX P
OPERATIONAL GUIDELINES FOR IMPLEMENTING 20% MARGIN MONEY
SUBSIDY UNDER TUFS (MMS@20%-TUFS) FOR POWERLOOM SECTOR
1. An option has been provided to the powerloom units to avail of 20% Margin Money
Subsidy under TUFS (MMS@20%-TUFS) in lieu of 5% interest reimbursement / 15%
Margin Money Subsidy. The operational guidelines of the MMS@20%-TUFS are as
follows:
2. Duration of the scheme
2.1 The operation of MMS@20% -TUFS will be co-terminus with modified TUFS, i.e.,
from 1st April, 2007 to 31st March, 2012.
3. Eligible units
3.1. The scheme is applicable to powerlooms in Micro & SSI sector only i.e., the units having
investment in plant & machinery as per Micro, Small & Medium enterprises
development Act 2006. However, filing of Entrepreneurs Memorandum with concerned
District Industries Centre is a pre -requisite for availing of assistance under the scheme.
3.2 The eligibility of the powerloom unit is subject to a capital ceiling of Rs.200 lakh and
ceiling on margin money subsidy of Rs.20 lakh. SSI units exceeding capital ceiling of
Rs. 200 lakh would not be eligible for assistance under 20% MMS- TUFS. Such units
are advised to avail of 5% interest reimbursement under TUFS.
4. Quantum of subsidy
4.1 20% margin money subsidy will be available on investment in TUF compatible
specified machinery subject to a ceiling of Rs. 20 lakh on subsidy amount to each unit.
Proviso :- (i)
(ii)
(iii)
81
82
subsidy to ensure that repayment period including moratorium period for the term loan
should be minimum of three years.
9. Release of subsidy
Following mechanism will be adopted for the release of
Manufacturers/ Entrepreneurs/ Banks.
9.1.
subsidy to Machinery
Machinery Manufacturers
9.1.1.
The powerloom unit will approach the lending agency for a term loan with their
project proposal. The lending agency would advise the office of the Textile
Commissioner of the sanction of the loan in the prescribed format as at Appendix
- III.
9.1.2.
The powerloom entrepreneur would release his initial advance of minimum 15%
contribution directly to the machinery manufacturer for the cost of the machine.
The lending agency would release the loan to the machinery manufacturer when
machinery are ready for dispatch. In case, with the loan amount, 80% of the cost
of the machinery is not met, the powerloom weaver would make good the
remaining amount to the machinery manufacturer from his own resources.
9.1.3.
9.1.4.
In case of imported machinery, the powerloom weaver would inform the office of
the Textile Commissioner after commissioning of the looms.
9.1.5.
9.1.6.
The 20% subsidy would be released by the office of the Textile Commissioner ot
the machinery manufacturers/ units Bank Account after receipt and examination
of certification from the inspection team.
9.1.7.
9.1.8.
83
9.1.9.
In case powerloom entrepreneur avails of bridge finance from the lending agency
for the 20% margin money subsidy to be given, the 20% subsidy would be
released by the Textile Commissioner directly to the lending agency.
9.1.10.
9.2.
Banks
9.2.1.
The Powerloom units may avail of 20% Margin Money Subsidy (MMS) on front
ended basis along with bank finance. The operational guidelines for releasing of
20% subsidy are as follows:
9.2.2.
The powerloom unit will approach the lending agency for term loan and bridge
finance for 20% MMS with their project proposal. After sanctioning of the loan
the lending agency shall advise the O/o the Textile Commissioner the sanction of
the loan in the prescribed format at Appendix - IV.
9.2.3.
Under the scheme, the lock in period for term loan would at-least be of 3 years.
9.2.4.
9.2.5.
The lending agency would release the term loan as well as bridge finance to the
machinery manufacturers when machinery is ready for dispatch.
The machinery manufacturer would continue with casting / engraving of the ninedigit identification code for each machinery.
9.2.6.
9.2.7.
9.2.8.
Lending agencies visits the unit either before or after disbursement of the loan.
During this visit, the lending agency would ensure the casting/engraving of the
nine-digit identification code on the indigenous machinery as per the guidelines.
9.2.9.
After this visit, the lending agency will inform the O/o the Textile Commissioner
that the party has installed the machinery and they have released the payment
including the bridge finance on account of the 20% margin money subsidy in the
prescribed format . The lending agency, along with this declaration will also
send the copies of all related documents , which should invariably have all the
specification of the machinery and also the 9-digit identification code to the
office of the Textile Commissioner.
9.2.10.
Based on the documents so received from the lending agency, the O/o the Textile
Commissioner would release the margin money subsidy to th e lending agency.
9.2.11.
20% margin money subsidy will be worked out on the basis of invoice price
exclusive of all taxes, in respect of indigenous machinery. The lending agency
should provide bridge finance to the extent of 20% of eligible investment.
84
9.2.12.
In respect of brand new imported machinery, the 20% margin money subsidy will
be worked out on the basis of CIF price, while in respect of second hand imported
machinery, the 20% margin money subsidy will be worked out on the basis of
benchmarked price as fixed by Textile Commissioner from time to time or CIF
price whichever is lower.
9.2.13.
In case the lending agencies give bridge finance more than the eligible 20%
margin money subsidy, the excess amount will have to be recovered from the
powerloom weaver or it can be converted into a normal term loan by the lending
agency.
9.2.14.
To prevent mis-utilisation of the scheme, casting of a unique mill no, machine code
no, and engraving of the running serial number would be done on each machine.
There would be a nine-digit identification code for each machinery. The nine-digit
identification code will include the following:
The first three digits (000) of the identification code will indicate unique three
digit mill No. for each manufacturer which has been allotted by the Textile
Commissioner. The unique three digit mill no. will be casted in the specified
cast components by the machinery manufacturers.
The next two digits (00) of the identification code will indicate the type of the
machinery. The two digit number for different type of machinery has been
specified by the Textile Commissioner. The details of the two digit numbers
are given in the Appendix - V. The two digit number is to be casted /
engraved besides three digit unique mill number on each machinery.
The next four digits (0000) will indicate number of machinery of that
manufacturer produced under the scheme. The four digit running serial No. for
each type of machinery will be given by the respective machinery
manufacturer and is to be engraved besides three digit unique mill number and
two digit machine code specified by the Textile Commissioner for that
machinery.
For example the nine digit identification code for Automatic Pirn Changing
loom produced under the scheme by M/s ABC Works Ltd, would be 024-03-0001.
The first three digits 024 indicate the unique mill number of M/s ABC Works Ltd
,the next two digit 01 indicate the type of machinery i.e., Automatic Pirn Changing
loom, the next four digit 0001 indicate the first Automatic Pirn Changing loom
produced by M/s ABC Works Ltd, under the Scheme. Likewise the nine-digit
identification code for 1st rapier loom produced under the scheme by M/s XYZ
Works Ltd would be Rapier loom 001-04-0001. The first three digits 001
indicate the unique mill number of M/s XYZ Works Ltd ; the next two digit
85
04 indicate the type of machinery i.e., rapier loom; the next four digit 0001
indicate the first rapier loom produced by M/s XYZ Works Ltd under the Scheme.
The machine serial no. will be in continuity from the earlier number as given under
CLCS.
10.2.
The identified machinery manufactures would cast the 3 digit unique mill No. on the
select cast components as specified by the Textile Commissioner. The item-wise
specified components for casting are at Appendix - VI. The two digit machinery No.
specified by the Textile Commissioner will be casted / engraved while the four digit
running S.No. would be engraved on the machine on such cast component so that mill
code, machine code and running serial no of machine are in alignment to make a row.
10.3.
For specified machinery which have no cast components engraving of unique mill no.
instead of casting of such no. is permitted by the Textile Commissioner.
10.4.
For the existing stock of the machinery manufacturers, the stock declaration statement
as on date of enlisting under scheme would be submitted by the machinery
manufacturers to Office of the Textile Commissioner, Powerloom Development Cell.
Based on the quantum of such stock, the Textile Commissioner would take a decision
regarding coverage of such stock under scheme by permitting engraving of the unique
mill nos. on such stock.
10.5.
In respect of imported (new & 2nd Hand machinery), the serial nos of the machineries
and Year of Make should be visible, by way of casted / engraved/ affixing the plate as
the case may be, on the machines.
Grievance of the beneficiaries after purchase of machinery under the scheme would
be considered by a grievance committee under the chairmanship of the Textile
Commissioner and comprise of such members as Textile Commissioner deems fit.
86
Appendix - I
BENCHMARKED PRICE FOR THE ELIGIBLE SECOND HAND MACHINERIES (LOOMS) UPTO
10 YEARS VINTAGE
(W.E.F 1/ 4/2007 TO 31/3/2012)
S. No
Specifications/
Model
Non EU
Countries
1.
Rs.8.00 lakh
2.
Irrespective of
speed/width
Rs.8.00 lakh
3.
Rs.4.00 lakh
Rs.2.50 lakh
Rs.3.00 lakh
Rs.1.50 lakh
Rs.8.00 lakh
Rs.4.50 lakh
Rs.6.00 lakh
Rs.3.50 lakh
Rs.8.00 lakh
Rs.4.50 lakh
4.
Note:
Rapier loom
Subsidy will be admissible on actual CIF price (subject to above ceiling) exclusive of duty and taxes.
87
Appendix - II
LIST OF IDENTIFIED / BENCH MARKED MANUFACTURERS ALONG WITH
BENCHMARKED MACHINERY UNDER CLCS @ 20% - TUFS
Sr.
NO.
1
Unique
Code
No.
001
002
003
004
005
006
Dobby
88
Sr.
NO.
7
Unique
Code
No.
007
009
011
10
012
11
015
12
017
13
018
14
020
15
024
Warping Machine
Sizing Machine
Shuttleless Rapier Loom
Jacquard
Jacquard
Warping Machine
Sizing Machine
89
Sr.
NO.
16
Unique
Code
No.
030
17
050
18
054
19
065
20
084
21
085
M/s. A. M. Industries,
9, Tejandra Ind. Estate, Nr. Ajit Mills
Tolnaka, Opp. Bharat Bobbins,
Rakhial, Ahmedabad 380 023
Tel (F) 274 5786, (R) 274 0786
Fax 273 2786, Mob. 98250 38786
Ishak Khan M. Pathan
Email- export@superdobby.com
Dobby
22
095
Rapier Loom
Waterjet Loom
23
111
24
113
90
Sr.
NO.
Unique
Code
No.
25
114
26
119
Sizing Machine
Sizing Machine
Direct Warping Machine
27
121
28
122
91
Sr.
NO.
29
Unique
Code
No.
123
30
31
Sectional Warping
124
Shuttleless Flexible
Rapier Loom
128
32
129
33
130
34
131
35
132
Sizing Machine
Warping Machine
Jacquard (Computerised
pattern maker machine)
92
Sr.
NO.
36
Unique
Code
No.
133
93
94
Appendix III
FORMAT FOR SUBMITTING THE DATA UNDER MMS@20%-TUFS FOR POWERLOOM SECTOR
Dated : _______________
Name & Address of the Lending Agency
Sr. No
(1)
(2)
1.
Sub Total
2.
Sub total
3.
Sub total
Grand total
Date
Amount
(Rs)
Date
Amount
(Rs)
(7)
(8)
(9)
(10)
Appendix IV
Format to be submitted by the lending agencies for claiming subsidy from the
Office of the Textile Commissioner.
Dated : _______________
Name & Address of the Lending Agency:
(a)
(b)
(c)
(d)
6
(ii) Existing
(a)
Sr.
No.
Indigenous machinery
Description of
machinery
No. of
machine
s
Nine digit
code
number(s)
Invoice Price
(Rs.)
Description
of machinery
No. of
machines
Brand
New or
second
hand
Machine
Sr.No.
Date
of Bill
of
Entry
Invoice
Price
Speed
of
loom
Width
of
loom
CIF price
Documents to be enclosed:
Sr.
No.
1
Please tick if
enclosed and write
N.A. if not
applicable
Description of document
Invoice with full details including accessories and also indicating 9 digit
code number.
Declaration from the borrower that he has not exceeded the subsidy limit of
Rs.20 lakh since inception of the scheme.
8.
It is certified that the unit has commissioned machinery and the payment has been
released for the same including the bridge finance on account of 20% margin money subsidy
as per the guidelines issued by office of the Textile Commissioner vide circular no. 7 (20032004 series) dated 23rd Jan., 2004 and further amendments issued from time to time by the
Government of India and the unit has not availed of 5% interest subsidy / 15% CLCS
under TUFS.
Authorised signatory
Place :
Date :
Name :
Designation:
Seal
Appendix -V
Two Digit code for different type of machinery specified by the Textile Commissioner.
S.No.
Type of Machinery
2 digit code
1.
03
2.
04
3.
Dobby
05
4.
Jacquard
06
5.
Pirn Winding
07
6.
08
7.
Warping Machine
09
8.
Sizing Machine
10
9.
Waterjet looms
13
Annexure VI
Jacquard
The side frames (Left & Right)
Warping Machine
Creel Part
Frame Holders
Yarn Tensioners
Cone Frame
Head Stock
Drive Shaft Housing
Girt Bars
SECTIONAL WARPING
Brake Flange for Warping Drum
(RH)
Brake Flange for Warping Drum
(LH)
Reed Table Body
Beam Donning Doffing Set
Gear Box for Traversing the
Machine
Gear Box for Warping Table &
Beam
Arm Traverse
Dobby
The side frames (Left & Right)
Sizing Machine
Creel
Creel Bracket
Creel Frame
Size Box
Rubber Roller Housing
Main frame
Dryer
Cylinder Bearing Housing
Cylinder Dish End
Head Stock
Nip Roller Housing
Main Frame
In case of the castings, the unique manufacturers code No. should be inserted during the casting of the
components. The running serial No. should be engraved on the components besides the code No.
ANNEX Q
OPERATIONAL GUIDELINES OF MARGIN MONEY SUBSIDY @ 15% UNDER
TUFS FOR SMALL SCALE TEXTILE AND JUTE UNITS
1. An option has been provided to the small scale textile and jute units to avail of 15%
Margin Money Subsidy under TUFS (MMS@15%-TUFS) in lieu of 5% interest
reimbursement / 20% Margin Money Subsidy for powerloom sector. The operational
guidelines of the MMS@15%-TUFS are as follows:
Duration of the scheme
2. The operation of MMS@15%-TUFS will be co-terminus with modified TUFS, i.e., from
1st April, 2007 to 31st March, 2012.
Eligible units
3. The scheme is applicable to SSI units of eligible segments mentioned in I. SCOPE OF
THE SCHEME in GR of TUFS. The definition of small scale industry would be as per
Micro, Small & Medium enterprises development Act 2006. However, SSI registration is
not a pre-requisite for availing of assistance under MMS@15%-TUFS.
4. The eligibility of the SSI unit is subject to a capital ceiling of Rs.200 lakh and ceiling on
margin money subsidy of Rs.15 lakh. SSI units exceeding capital ceiling of Rs. 200 lakh
would not be eligible for assistance under 15% MMS TUFS. Such units are advised to
avail of 5% interest reimbursement under TUFS.
Quantum of subsidy
5. 15% margin money subsidy will be available on investment in TUF compatible machinery
subject to a ceiling of Rs.15 lakh on subsidy amount.
6. SSI units availing of 15% subsidy will not be eligible for 10% capital subsidy in specified
processing, garmenting, and technical textile machinery.
Norms and eligible m achinery
7. Technology and other norms of TUFS are equally applicable to MMS@15%-TUFS cases
for determining the eligibility under the scheme.
8. The eligible machinery under MMS@15%-TUFS are at Annex A to H of GR of TUFS.
Eligible value for subsidy
9. The margin money subsidy will be worked out on the basic value of the machinery and
exclude the tax component for the purpose of valuation. In other words, for indigenous
machinery the basic price and for imported machinery CIF price would be considered for
working out subsidy.
10. In respect of imported second hand shuttleless loom the price fixed as per the
MMS@20%-TUFS should be considered for working out the subsidy.
Lending Agency
11.
All Nodal Banks, SIDBI and its all co-opted PLIs are eligible for funding under the
scheme.
Financial norms
12.
13.
Financial norms like security debt-equity ratio, previous years profit position,
networth etc. will be as per existing norms of lending agency. However, they should not be
stricter than TUF norms.
Mechanism for release of subsidy
14.
The scheme would be operated by Office of the Textile Commissioner as well as the
lending agencies. The entrepreneur will have the option to choose either the route of
Office of the Textile Commissioner or the lending agency.
15.
The entrepreneur which chose the route of lending agency, the procedure as existed in
erstwhile TUFS will continue and lending agency will submit the information in format
III to the Office of the Textile Commissioner for release of funds. However, the
entrepreneur which chose the route of Office of the Textile Commissioner the
following procedure will be applicable.
Through Office of the Textile Commissioner
16.
The eligible SSI unit will approach the lending agency for a term loan with their project
proposal. The lending agency would advise the Office of the Textile Commissioner
after sanction of the loan in the prescribed format as at Appendix-I.
17.
The SSI entrepreneur would release his promoters contribution of 15% directly to the
machinery manufacturer. The lending agency would release the loan to the machinery
manufacturer when machinery are ready for dispatch. In case, with the loan amount,
85% of the cost of the machinery is not met, the SSI entrepreneur would make good the
remaining amount to the machinery manufacturer from his own resources.
18.
The machinery manufacturer would install and commission the machinery on receiving
85% of the cost of the machinery. After satisfactory commissioning of the machinery,
the machinery manufacturer / SSI entrepreneur would inform the Office of the Textile
Commissioner.
19.
In case of imported machinery, the SSI entrepreneur would inform the Office of the
Textile Commissioner after commissioning of the machinery.
20.
21.
The 15% subsidy would be released by the Office of the Textile Commissioner to the
machinery manufacturers after issue of certification from the inspection team. The
Office of the Textile Commissioner would ensure that 15% subsidy is released within
one month of issue of the certificate by the Certification Committee.
22.
In respect of TUFS compatible imported machinery, the SSI entrepreneur will need to
open a LC in Bank to make the purchase. In such cases, the 15% subsidy would be
released directly to the SSI entrepreneurs bank account after receiving installation and
commissioning report of the imported machinery.
23.
In case SSI entrepreneur avails of bridge finance from the lending agency for the 15%
margin money subsidy to be given, the 15% subsidy would be released by the Textile
Commissioner directly to the lending agency.
24.
26.
After sanction of the assistance lending agencies will get an agreement executed by the
small scale unit on behalf of Government of India. A copy of the draft agreement to be
executed by the eligible PLI with SSI unit is at Appendix- II.
27.
Textile Commissioner would also constitute a team comprising of senior officers of the
Head office to periodically inspect on random basis, the machinery installed /
commissioned.
Grievance Committee
29.
Grievance of the SSI entrepreneurs after purchase of machinery under the scheme,
would be considered by a grievance committee under the chairmanship of the Textile
Commissioner comprising of representatives of industry associations and FITEI.
****
Appendix - I
Dated : _______________
Name & Address of the Lending Agency
Machinery covered under the scheme
Sr.
No.
(1)
1.
Name &
Address of
borrower
(2)
Sub total
2.
Sub total
3.
Sub total
Grand total
Name of the
machinery
alongwith
specification
(3)
Basic price
/ CIF price
of the
machinery
excluding
all taxes
(Rs.)
(6)
Total amount
sanctioned under
MMS-15% TUFS
Date
(7)
Amount
(Rs)
(8)
10
Appendix II
(To be stamped as an Agreement)
Agreement for availing of Credit Linked Margin Money Subsidy under
Technology Upgradation Fund Scheme (CLMMS-TUFS) for
Small Scale Textile and Jute Industries
This Agreement made at _________________on this______________day of ___________in the year
___________ between M/s _____________________ ___________________________ a public /
private Limited Company/ proprietary concern, incorporated under the Companies Act of 1956 and
having its Registered Office at __________________ and being an industrial concern hereinafter
called the Beneficiary (which expression shall unless repugnant to the context or meaning thereof
include its successors and assigns) of the One part:;
OR
FOR PARTNERSHIP FIRM
(i)
Shri _______ son of _________ age _______years residing at _______
(ii)
Shri _______ son of _________ age _______ years residing at ______
(iii)
Shri _______ son of _________ age _______ years residing at _______ carrying on business
in partnership in the firm name and style of _________ and having their office at ___________
(hereinafter referred to as 'Beneficiary' which expression shall, unless it be repugnant to the subject or
context thereof, include its/his/her/their legal representatives, heirs, administrators, successors and
assigns) of the One part.
AND
____________________________________________ (hereinafter referred to as the financing
institution/Bank) [ which expression shall unless repugnant to the context or meaning thereof include its
successors and assigns] of the Other part.
WHEREAS
1. Government of India has appointed Small Industries Development Bank of India (SIDBI) as Nodal
Agency or __________________________ as nodal bank (hereinafter referred to as the Agent) for
channelising Credit Linked Margin Money Subsidy for Technology Upgradation of the Small Scale
Textile and Jute Industries under Technology Upgradation Fund Scheme (TUFS) of Ministry of
Textiles, Govt. of India (hereinafter referred to as the Scheme) and permitting the financial institution /
Bank under the Scheme for claiming margin money subsidy on the term loan sanctioned and
disbursed by the financing institution/bank to the beneficiary.
2. The beneficiary has requested the financing Institution/ Bank for providing assistance under the
Scheme
to
the
extent
of
Rs.
____________________
(Rupees
_____________________________________________________ only) for setting up a project under
small scale industries, which the financing Institution / Bank has agreed to lend in proportion to the
11
eligible investment made or to be made in purchase of machineries under TUFS by the Beneficiary
as per the terms and conditions provided in the Agreement executed between the financing institution /
Bank and the Beneficiary.
3. The Agent has agreed to act as nodal agency for Government of India for channelising
disbursement of capital subsidy sanctioned to the Beneficiary by the financing institution/ Bank, and
the parties hereto desire to enter into an agreement for the said purpose, being these presents
providing for the terms hereinafter appearing.
NOW THESE PRESENTS WITNESS AND IT IS HEREBY AGREED BY AND BETWEEN THE
PARTIES HERETO AS FOLLOWS:1.
a)
That the Beneficiary will comply with and faithfully observe all the terms and conditions of the
said Scheme and also all the subsequent amendments and modifications and additions thereto
together with the conditions of the sanction of the said financial assistance.
b)
That the Beneficiary will allow the officers of the Agent and / or the Government of India or any
other person or persons authorised, by the Agent or by Government of India or by the Technology
Advisory-cum-Monitoring Committee (TAMC) / Inter-Ministerial Steering Committee (IMSC) to
inspect the work for which the margin money subsidy has been granted and also the machines, plant
appliances, tools, equipments, etc., for the procuring of which the subsidy has been granted and will
furnish such information concerning the machines, plant, implements, etc., for procuring of which the
margin money subsidy has been granted or concerning the matters connected with the margin money
subsidy or incidental thereto as the Agent or th e TAMC/IMSC or their nominees may, from time to time
require.
c)
That the Beneficiary will not change the place or location of the industrial unit entirely or partly,
nor enter into partnership with any one, or change its constitution by merger, amalgamation or in any
manner nor the Beneficiary will effect disposal of fixed capital investment without the express prior
permission of the Agent in writing.
2. It is further hereby agreed and declared by and between the parties thereto, that in any of the
following cases namely,
a) where the Beneficiary has obtained the margin money subsidy by misrepresentation as to an
essential fact, or by furnishing of false information; or,
b) where the industrial unit goes out of production within three years from the date of
disbursement of margin money subsidy except in cases where the unit remains out of
production for short periods not exceeding three months (six months in case of ginning and
pressing factories and not to any other manufacturing activity of the textile industry) due to
reasons beyond its control such as shortage of raw material / power etc.; or
c) where the Beneficiary fails to furnish the prescribed statement or information which it is called
upon to furnish.
If the Beneficiary commits breach of any one of the covenants herein contained or of the terms
and conditions of the Scheme as amended from time to time, the Beneficiary shall refund the same
forthwith to the financing institution / bank together with interest at the then prevailing prime lending
rate of financing institution/bank. The bank/FI shall take all steps for recovery of the margin
money subsidy to the Beneficiary as it is provided by the Agent and all the expenses incurred
12
by the bank/FIs/Agents for recovery shall also be recoverable from the beneficiary. The margin
money subsidy along with interest so recovered shall be transferred to the Govt.
3. The interpretation/clarification/decision of agent or TAMC/IMSC regarding the eligibility, subsidy
and any other benefits of an unit/borrower under the scheme, either before or after release of the loan
facility by the financing institution/bank shall be binding on the beneficiary and the beneficiary will not
raise any objection either against agent or bank/financing institution.
4. It is hereby further agreed and declared that the stamp duty chargeable on these presents shall
be paid and borne by the Beneficiary and that the Beneficiary will also be liable to bear the expenses,
if any, incurred by enforcing the terms and conditions of these presents.
IN WITNESS WHEREOF the Beneficiary has caused its common seal to be affixed hereto
and to a duplicate hereof on the day, month and year first hereinabove written and Bank has caused
these presents and the said duplicate to be executed by the hand of Shri
________________________ (Name & Designation) of Bank, as hereinafter appearing.
THE COMMON SEAL OF _____________________________ LIMITED has pursuant to the
Resolution of its Board of Directors passed in that behalf on the ___________ day of
____________________ hereunto been affixed in the presence of Shri ______________ and Shri
_____________ Shri ________________________, Director who have signed these presents in token
thereof and Shri _____________________________ Secretary* / Authorised* person who has signed /
countersigned the same in token thereof
SIGNED AND DELIVERED BY the within named Bank
by the hand of Shri _______________________________________
(Name & Designation), an authorised official of Bank.
OR
IN WITNESS WHEREOF the partners of the Benefi ciary have set their respective hands hereto and to
a duplicate hereof on the day, month and year first hereinabove written and Bank has caused these
presents and the said duplicate to be executed by the hand of Shri _______________ (Name &
Designation) of Bank, as hereinafter appearing.
1)
SIGNED
AND
______________________,
named Partnership Firm.
DELIVERED
BY
the
within
named
Shri
Partner of __________________________, the within
2)
SIGNED AND DELIVERED BY the withinnamed Shri
_______________________, Partner of ___________________________, the within
named Partnership Firm.
13
14
ANNEX R
OPERATIONAL GUIDELINES OF CAPITAL SUBSIDY @ 10% UNDER TUFS FOR
PROCESSING, GARMENTING AND TECHNICAL TEXTILES
capital subsidy for the eligible specified machinery the cut off date will be date of
commencement of commercial production irrespective of the date of the sanction of the
loan.
common the technical textile units desirous of availing of 10% capital subsidy will have
to obtain a registration number from Office of the Textile Commissioner prior to
becoming eligible for 10 percent capital subsidy.
Quantum of subsidy
7. The 10% capital subsidy will be available on the specified machinery and will be worked
out on the basic value of the machinery and exclude the tax component for the purpose of
15
valuation.
In other words, for indigenous machinery the basic price and for imported
continue to be eligible for 5 percent interest incentive on the TUF compatible investment.
Release of capital subsidy
9. The capital subsidy would be released by the lending agencies at the time of disbursement
of term loan for the specified machinery.
10. The capital subsidy can also be adjusted against promoters contribution.
16
Format TR-I
Format for obtaining the registration number for 10% capital subsidy
under TUFS for technical textile units
1.
4.
PTO
17
7
Sr.
No.
Place:
Date:
Authorised Signatory
18
ANNEX S
a.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
b.
28.
29.
30.
31.
c.
Allahabad Bank
Bank of Maharashtra
Bank of Nova Scotia
Bank of Rajasthan Ltd.
Catholic Syrian Bank Ltd.
Citi Bank
Corporation Bank
Dena Bank
Jammu & Kashmir Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Lakshmi Vilas Bank Ltd.
Oriental Bank of Commerce
Punjab and Sind Bank
South Indian Bank Ltd.
Standard Chartered Bank
Syndicate Bank
UCO Bank
UTI Bank Ltd.
HongKong and Shanghai Banking Corporation.
Indusind Bank
Kumbakonam City Union Bank Ltd.
Centurion Bank of Punjab Ltd.
Federal Bank Ltd.
Tamilnadu Mercantile Bank Ltd.
Vijaya Bank
ING Vysya Bank Ltd.
Co-opted by SIDBI only.
19
32.
33.
34.
35.
HDFC Bank
ING Bank NV
Yes Bank Ltd.
ABN Amro Bank N. V.
II.
Co-operative Banks
a.
Co-opted by IDBI
36.
b.
37.
38.
39.
40.
41.
42.
43.
44.
45.
c.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
III.
a.
64.
20
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
IV.
a.
78.
79.
80.
81.
82.
83.
84.
85.
V.
a.
86.
VI.
a.
Co-opted by IDBI
87.
88.
89.
90.
VII.
Others
a.
Co-opted by SIDBI
91.