A. RRTUFS- FREQUENTLY ASKED QUESTIONS (FAQs)
Q1: What is TUFS ?
Ans. It is Technology Upgradation Fund Scheme (TUFS) for textiles and Jute industry.
Q2. What are the variants/ schemes under TUFS?
Ans: TUFS (Technology Upgradation Fund Scheme) 01.04.1999 - 31.03.2007.
MTUFS(Modified Technology Upgradation Fund Scheme)-01.04.2007-26.06.2010.
RTUFS,(Restructured Technology Upgradation Fund Scheme ) 28.04.2011-31.03.2012
RRTUFS(Revised Restructured Technology Upgradation Fund Scheme) 01.04.2012 31.03.2017
ATUFS(Amended Technology Upgradation Fund Scheme) – 13/01/2016 to 31/03/2022.
Q3. Whether TUFS (RR-TUFS) is in operation at present ?
Ans. Yes.
Q4. What were the salient features of the TUFS? How many products/sub- sectors have been approved under the TUFS
Ans. The unit falling in the eligible sectors can avail both capital and interest reimbursement subsidy. As per Government Resolution (GR) No. 6 / 19 / 2013-TUFS dated 04/10/2013, the RRTUFS covers the following eligible sectors :-
Sr. No. / Name of Segment / Sector / Interest Reimbursement (IR) Subsidy / Capital Subsidy (CS) / Margin Money Subsidy (MMS) / Remarks1 / Stand alone spinning units / 2% / --
2 / For units having spinning capacity with forward integration having matching capacity in weaving / knitting / processing / garmenting / 5% / --
3 / Weaving
a) Brand new shuttleless looms or 30% Margin Money Subsidy (MMS) on brand new shuttleless looms for powerloom sector / 6% / 15% / 30% / 6% IR and 15% CS or 30% Margin Money Subsidy on Brand New Shuttleless Looms for powerloom sector
b) second hand imported shuttleless looms with 10 years vintage and with a residual life of minimum 10 years / 2% / 8% / 2% IR or 8% MMS
c) capital ceiling caps of RS. 5 crore and subsidy cap of Rs. 1.5 crore would be adhered to for encouraging adequate investments by the MSME sector. / -- / -- / 30% / --
4 / Processing / 5% / 10% / -- / Specified processing machinery. CETP/ETP will not be considered for support under TUFS.
5 / Garmenting / 5% / 10% / -- / subsidy on specified machinery for garmenting units.
6 / Technical Textiles (including non-wovens) / 5% / 10% / -- / subsidy on specified machinery required in manufacture on technical textiles.
7 / Handloom and silk sector / 5% / 30% / -- / subsidy on benchmarked machinery.
8 / MSMEs including jute sector – 5% IR or / 5% / -- / 15% / 5% IR or 15% MMS– subsidy ceiling to be Rs. 75 lakh.
9 / Other segments – i.e., i) cotton ginning and pressing; ii) wool scouring; combing and carpet industry; iii) synthetic filament yarn texturising, crimping and twisting; iv) viscose staple fibre and viscose filament yarn; v) knitting and fabric embroidery; vi) weaving preparatory machines; vii) made-up manufacturing; viii) CAD, CAM and design studio and ix) jute industry / 5% / -- / -- / --
a) Investments like factory buildings, pre-operative expenses and margin money for working capital are eligible for benefit of reimbursement under the scheme only for apparel and handloom sector with 50% cap of total new eligible investment under RR-TUFS. Land is altogether excluded from eligible investments under TUFS. This benefit, however, shall not be available for textile units under the Scheme for Integrated Textile Park (SITP).
b) Period of interest reimbursement – Interest reimbursement will be for a period of 7 years including 2 years of moratorium / implementation.
c) Eligibility of restructured / rescheduled cases – subsidy in restructured cases will be restricted to the quantum approved of subsidy as given in the initial loan repayment schedule.
Q5. How can I get benefit under the Scheme?
Ans. Brief process of RRTUFS
1. The eligible unit approaches the banker with its loan proposal along with the project report
2. The loan is sanctioned with the eligibility clause under TUFS
3. The borrower applies for the UID, through its bank.
4. Thereafter the UID is generated by OTxC and communicated to the Bank / Unit.
5. The project is implemented and claim for subsidy is lodged online by the bank in i-TUFS.
6. The claim request for subsidy is forwarded from the nodal branch to GSC and is in turn forwarded to OTxC.
7. Thereafter the subsidy is released by MoT to GSC, SIDBI wherefrom it is remitted to SIDBI BOs / PLIs for onward release to beneficiary units.
Q6. Which are the Nodal Agencies for implementation of TUFS (RRTUFS)?
Ans. 3, IDBI for large industry, IFCI for Jute Industry and SIDBI for MSME Units.
Q7. Whether all the banks are covered under the Scheme?
Ans. Most of the Scheduled Commercial Banks are covered under the Scheme either as nodal banker or as Prime Lending Institute (PLI) to SIDBI, IDBI or IFCI.
Q8. Whether TUFS is applicable for medium scale Enterprises also?
Ans. Yes.
Q9. What are the new steps that have been taken by the Ministry for effective implementation' of TUFS ?
Ans. For effective implementation and transparency, new software i-TUFS have been launched for online Application and Tracking.
Q10. Whether individual MSMEs can directly apply for subsidy?
Ans. No. The online applications / claims are lodged only by the lending bank to Nodal Agency for onward submission to Office of Textile Commissioner (OTxC), Mumbai.
Q11. What is the time limit for applying for subsidy?
Ans. Eligible quarter-wise claim along with the prescribed certificates should be lodged in the i-TUFS by 15th of the following quarter.
Q12. What is the mechanism for disbursement of subsidy to the unit?
Ans. Release of funds will be effected only after the receipt of the prescribed certificates viz. utilisation certificate, no excess claim certificate, certificate that bank is not involved in corrupt practices / unfair means and acceptance of the sanction order of MOT from the concerned Banks. Subsidy under TUFS is in the form of Capital Subsidy and / or Reimbursement of Interest paid by the unit concerned to the Lending agencies for the loan disbursed and therefore the units are eligible for subsidy only in cases where loan has been disbursed and interest has been paid by the unit to the Lending Agency. Lending agencies shall submit the claims based on actual claims received from their branches.
The release of funds to the TUFS beneficiaries would be effected within 3 working days of receipt of funds from MOT.
Q13. What is the role of GoI, PLI and Nodal Agency?
Ans.: 1. Role of GoI-The MOT is the authority to sanction or reject the cases. The guidelines and all procedures are laid down by the OTxC / MoT.
2. Role of Nodal agency- The role of SIDBI is limited to implementation of the scheme where final decision regarding sanction/release/cancellation of subsidy lies with respective GoI.
3. Role of Prime Lending Institution (PLI) - The ultimate responsibility of authority of facts & figures in context of subsidy lies with PLI.They are accountable for the proper end use of sanctioned subsidy.
Q14. What is to be done if the account becomes NPA during the process involving release of subsidy ?
And. In case the account becomes NPA during the process of release of subsidy then the entire subsidy released in this account has to be recovered from the respective beneficiary unit and refunded to OTxC / MoT immediately.
Q15. Is there any web-site where from I can get more details of the TUFS?
Ans. Yes; Web-site is www.txcindia.gov.in .
IMPORTANT
· The above process flow may be read in conjunction with circulars and guidelines issued by GoI / GSC from time to time.
· GoI is the final authority in the subsidy matter.
· In addition to above, information / guidelines at OTxC web-portal i.e. http://www.txcindia.gov.in may be scrupulously followed.
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