Indian textile sector yet to receive stimulus package funds

The textile industry is yet to receive the Rs 1,400 crore promised in last month’s stimulus package to clear the backlog of reimbursements under the Technology Upgradation Fund Scheme (Tufs).

The industry, which has complained of widespread job losses along with a sharp decline of about 30 per cent in its expected export target for the current fiscal, wants a quick action from the government. Industry sources say that even if the government releases the funds, the banks would take another month to disburse them.

According to a senior textile ministry official, the money would be released within a few days. “Within a week’s time, the ministry will issue cheques to banks,” said the official, adding that there were last-minute procedural formalities to be done before releasing the money.