The technology modernisation subsidy for the textile sector would continue in the twelfth Plan with an enhanced allocation of 15,886 crore rupees.Talking to newsmen in New Delhi Commerce and Textile Minister Anand Sharma said,government is also working on a package for powerloom and silk sectors.

The outlay for Technology Upgradation Fund Scheme, TUFS, in the eleventh Plan was 12,000 crore rupees. Under the scheme, government provides subsidies to the industry for modernisation by installing new machinery and adopting upgraded technology. The scheme is very popular among textiles segments such as spinning, cotton ginning and pressing, garments and weaving.
Our correspondent reports,the industry has been hit by high raw material prices, high interest rates, besides demand slowdown in major markets such as Europe and the US.The government had announced a 35,000-crore rupee debt restructuring package for the ailing textile industry, which has been faced with massive unemployment and shutdown of business.