Tirupur Exporters' Association (TEA) today urged union textile minister Dayanidhi Maran to continue with the Technological Upgradation Fund (Tuf) scheme subsidy, which had given a new lease of life to the textile industry.

TEA expressed shock over the Circular from the office of Textile Commissioner, informing the decision of Expenditure Finance Committee and in pursuance of this, Nodal Agencies and Nodal Banks have been advised not to issue any new sanctions under TUFs till additional allocations were approved by Cabinet Committee on Economic Affairs

The lending agencies have also been advised to freeze all new proposals in pipeline till additional allocations were made, TEA president, A Shaktivel, said in a letter to Maran.

The exporters, who have shelved their proposals to go for modernisation and capacity increase since 2008, decided to revive their plan under TUF scheme, existing till 2012. A few exporters have given their proposal to the banks and many of the exporters are contemplating to give their proposal of modernization/increasing their factories capacity, he claimed.

When the production of manmade fibre get increased, the consumption of fibres could be increased only by increasing the capacities in garment units, with latest machinery. As there was a good market for manmade fibre garments throughout the year in global market, the knitwear garment units have planned to manufacture manmade fibre garments, who were manufacturing almost 95% of cotton based garments which has a market for only three months.

In order to fulfill the objectives, Apparel Export Promotion Council has set up Knitwear Technology Mission in Tirupur, to provide all kinds of technical support for manufacturing of manmade fibre garments, Shakivel said.

More importantly, it was essential for the knitwear garment exporters to go for new capacities with special machineries and the subsidy under TUF cheme was needed otherwise, the real objective of National Fibre Policy will not be fulfilled.

Considering all these aspects and fact, TEA requested the minister to take up the matter with Finance Ministry and ask them to not to freeze the projects in pipe line and to continue the sanctions for the benefit of entire textile industry.