Incentive Scheme for Technology Upgradation

The Corporation is acting as an agent for the Technology Upgradation Fund Scheme for Small Scale Textile and Jute Industries.� The scheme has been promoted by Ministry of Textile, Government of India and SIDBI/IDBI has been designated as Nodal Agency. Under the scheme, option is available to small scale textile industries to avail either One Time 12% (revised to 15%) Credit Linked Capital Subsidy or 5% interest reimbursement on loan eligible under TUF.� The scheme is operative from 1st January, 2002 and has been extended upto 31st March, 2007.� The scheme covers Cotton Ginning and Pressing, Textile Industry (specified) and Jute Industry.� The capital subsidy would be admissible only on the eligible investment under TUFs and would be released to the beneficiary unit on prorata basis alongwith disbursement of loan sanctioned for Technology Upgradation.� The amount of capital subsidy will be treated as non-interest bearing term loan and it would be adjusted in the term loan account of the beneficiary after a lock-in period of three years on a prorata basis in terms of release of capital subsidy.� The unit availing capital subsidy should at lease function for a period of minimum of three years from the date of disbursement of capital subsidy otherwise the unit is liable to refund the same alongwith interest.