Textiles Minister Santosh Kumar Gangwar said in Lok Sabha to give emphasis on decentralized power loom sector, interest reimbursement and capital subsidy for new shuttle less looms have been raised from five per cent to six percent and 10 percent to 15 percent respectively.
The margin money subsidy has also been increased from 20 percent to 30 percent with an increase in subsidy cap from Rs 1 crore to Rs 1.5 crore, he said.

The Minister said a pilot project has also been envisaged under the power loom sector which aims at providing subsidy for developing infrastructure, common facilities, and construction of factory buildings and for shuttle less looms on hire purchase basis to improve their quality and production and to face the competition from domestic market as well as export market.
"Capital subsidy has been increased from 25 percent to 30 percent for handloom and silk sector, margin money subsidy cap is increased from Rs 45 lakh to Rs 75 lakh for MSME and jute sector," he said.
Gangwar said the scheme has been evaluated thrice in 2003, 2006 and 2010 and all evaluations found the scheme beneficial for the textile industry and recommended its continuation.

"These evaluations have found improvement in quality, turn over productivity, profitability, exports etc and a decline in cost, wastage, maintenance and labour costs etc," he said.

The Minister said the scheme was last reviewed by the Expenditure Finance Committee in March 2013 and it was recommended to continue the scheme in the 12th Five Year plan. A subsidy of approximately Rs 2,60,000 crore attracted under TUFS.

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