NEW DELHI:  In a bid to boost 'Make in India' flagship programme, the government today approved a revised scheme for textile sector.

In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet approved the Amended Technology Upgradation Fund Scheme (ATUFS). The revised scheme will replace the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS). The upgraded scheme will focus on technology upgradation in the textile sector.

The amended scheme is expected to generate investment of 1 lakh crore and create over 30 lakh jobs.

"A budget provision of 17,822 crore has been approved, of which 12,671 crore is for committed liabilities under the ongoing scheme, and 5,151 crore is for new cases under ATUFS," a cabinet communique said.

The new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India's share in global exports.

It also aims to promote technical textiles, a sunrise sector, for export and employment and also promote conversion of existing looms to better technology looms for improvement in quality and productivity.

Encouraging better quality in processing industry and checking need for import of fabrics by the garment sector is another target.

The office of textile commissioner is being reorganised with its offices to be set up in each state. Officers of the textile commissioner shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the state government agencies.

Under the new scheme, there will be two broad categories - apparel, garment and technical textiles, would get 15 percent subsidy on capital investment, subject to a ceiling of 30 crore 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 20 crore on similar lines.

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