The nodal agencies under the scheme for different segments are as follows:-

(i) Industrial Development Bank of India Limited (IDBI)

(ii) Small Industries Development Bank of India (SIDBI)

(iii) Industrial Finance Corporation of India (IFCI)

(iv) State Bank of India (SBI)

(v) Export-Import Bank of India (EXIM BANK)

(vi) Punjab National Bank(PNB)

(vii) Union Bank of India(UBI)

(viii) Bank of Baroda(BoB)

(ix) Canara Bank (CB)

(x) Bank of India(BoI)

(xi) Central Bank of India (CBI)

(xii) Andhra Bank(AB)

(xiii) Indian Overseas Bank(IOB)

(xiv) ICICI Bank

(xv) National Cooperative Development Corporation(NCDC)

(xvi) Indian Bank (IB)In order to provide a network of financial organisations for sanction and disbursement of loan so as to have a wider reach to the industry in the country, the nodal agencies(IDBI, SIDBI and IFCI) have co-opted various institutions such as All India Financial Institutions, Scheduled Commercial Banks, Co-operative banks, State Finance Corporations, State Industrial Development Corporations, National Cooperative Development Corporations etc.

(i) The Scheme mainly provides for reimbursement of five percent interest charged by the financial institutions/banks for technology upgradation projects in

      conformity with the Scheme. However, the rate of interest reimbursement on spinning machinery has been reduced to 4%.

(ii) In addition to this the Scheme provides coverage of exchange rate erosion not exceeding 5% points per annum in respect of foreign currency loans instead

       of 5% interest support. However, for the spinning machinery the coverage is 4%.

(iii) The Scheme provides an additional option to the powerlooms units to avail of 20% Margin Money subsidy under TUFS in lieu of 5% interest

        reimbursement on investment in TUF compatible specified machinery subject to a capital ceiling of Rs. 200 lakh and ceiling on subsidy Rs.20 lakh.

(iv) The Scheme provides 15% Margin Money subsidy for SSI textile and jute sector in lieu of 5% interest reimbursement on investment in TUF compatible

        specified machinery subject to a capital ceiling of Rs. 200 lakh and ceiling on subsidy Rs.15 lakh.

(v) The Scheme provides 5% interest reimbursement plus 10% capital subsidy for specified processing machinery, garmenting machinery and machinery

       required in manufacture of technical textiles.

(vi) The Scheme provides 25% capital subsidy on purchase of the new machinery and equipments for the pre-loom & post-loom operations, handlooms/up-

       gradation of handlooms and testing & Quality Control equipments, for handloom production units.

(vii) The Scheme provides Interest subsidy/capital subsidy/Margin Money subsidy only on the basic value of the machineries.

Any textile unit, which is eligible as per the normal lending norms of the concerned financial institutions and fulfils the benchmark criteria of the scheme, can avail of funds under the Scheme. However, the following types of units are eligible under the scheme.

(i) Existing unit with or without expansion and new units.

(ii) Existing units can modernise and / or expand with the state-of-the-art technology.

(iii) New units must set up their entire facilities only with the appropriate eligible technology.

(iv) An unit can undertake one or more activities in an integrated manner as specified in the scheme.

Contact

Ministry of Textiles, Udyog Bhavan , New Delhi-110011
Ph.No. 91-11-23061338/ 18/14
Fax- 91-11-23063711 / 23063681