Report No. 52 of 2015-Performance Audit on Technology Upgradation Fund Scheme, Union Government-Ministy of Textiles

Date on which Report Tabled:
Fri 11 Mar, 2016
Date of sending the report to Government
Government Type
Union Department
Sector Science and Technology


The Government of India (GoI) introduced Technology Upgradation Fund Scheme (TUFS) in 1999-2000 to provide a focal point for modernization efforts through technology upgradation in the Indian Textile Industry, which occupied a unique position in the Indian economy in terms of its contribution to industrial production, employment and exports. The scheme was subsequently modified in 2007 (as M-TUFS1), 2011 (as R-TUFS2) and 2013 (as RR-TUFS3).  
At the Government of India level, the Ministry of Textiles (the Ministry) was the apex authority responsible for administration of the scheme.  Ministry has appointed Office of the Textile Commissioner, Mumbai (TxC) as its nodal agency for implementing the TUFS.  The scheme was further implemented by Financial Institutions identified by the GoI and was a reimbursement scheme providing benefits to Textiles units in the form of Interest Reimbursement, Capital Subsidy and Margin Money Subsidy. All claims for the scheme, processed by Financial Institutions (FIs), are routed through the TxC. The TxC collates and forwards these claims to the Ministry for issue of sanction and release of funds. The Ministry released ` 18,580.45 crore as subsidy for the TUFS during 1 April 1999 to 31 March 2014.   
As per data provided by the office of the Textiles Commissioner, Mumbai, there were 22,998 beneficiaries who had got their loans sanctioned between 1 April 2007 to 31 March 2014. Audit selected a sample of 3,231 cases out of these beneficiary units. The sample selected for audit, covered beneficiaries’ cases pertaining to M-TUFS as well as R-TUFS. Performance Audit was undertaken to assess whether management of claims under TUFS was in accordance with relevant guidelines and requirements. The period of Performance Audit of the scheme was from 1 April 2007 to 31 March 2014, covering seven major States, namely, Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Tamil Nadu. 

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