The government of India has approved the revamp of a scheme that has been running for many years to modernize the textile sector in a bid to attract more investments. The amended scheme is expected to generate investments of Rs. 1Lakh Crore and create over 30Lakh jobs. In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet Committee on Economic Affairs Modi on Wednesday approved the Amended Technology Upgradation Fund Scheme (ATUFS).
Originally introduced by the government in 1999, the scheme aims to help the industry upgrade operational technology and provides fixed subsidies to entrepreneurs investing in this regard.
The new scheme will be implemented across two broad categories. For the sub sectors of apparel, garment and technical textiles, upto 15 percent subsidy would be provided on capital investment, subject to a ceiling of Rs 30Crore for entrepreneurs over a period of five years. The other category is the remaining sub-sectors, who would be eligible for subsidy at a rate of 10 percent, subject to a ceiling of Rs. 20Crore on similar lines.
“A budget provision of Rs. 17,822Crore has been approved, of which Rs. 12,671Crore is for committed liabilities under the ongoing scheme, and Rs. 5,151Crore is for new cases under ATUFS,” a cabinet communique said.
The Union Cabinet Committee approved the signing and ratification of a tax information exchange agreement with the Maldives, which is expected to help curb tax evasion and avoidance.
The cabinet also approved the signing of a protocol to amend the convention between India and Slovenia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion.