ATUFS is a wonderful scheme: AEPC

Ahmad Shariq Khan & Aamir H Kaki

“I think ATUFS (Amended Technology Upgradation Funds Scheme) is a wonderful scheme. If it is efficiently implemented as it was announced then we exporters don’t need anything,” said Ashok G Rajani, Chairman, Apparel Export Promotion Council (AEPC).

Replying to a query regarding ceiling on capital investment, Rajani said, “we want the government to increase the Rs.30 crore ceiling on capital investment so that large factories, of Rs.100 crores, would be established and help in generating more employment. We have flagged this issue but we are not sure if the government will change the policy”, Rajani was speaking to the media and The Dollar Business Bureau on the sideline of the inauguration ceremony of the IIGF 2016 on Monday.

Under the revised ATUFS, the apparel, garment and technical textile industries are entitled to get 25 percent subsidy for Rs.30 crore capital investment. This was earlier 15 percent, for over a period of five years.

On being asked about the competitiveness of Indian textile exporters, Rajani said that the special package of Rs.6000 crore announced by the government would help the textile exporters in becoming more competitive.

“I have never seen such a package before, in which all the relevant Government Departments including Finance, Revenue, Labour, Commerce, and Textile have come together to give one package. Everything is now integrated, there is no need to run in between several departments,” he added.

The current government is taking initiatives to boost exports and in generating employment. The special package would create major employment for women, said Rajani.

On the question of outcome and implementation, he stated that a special package has been announced but we’re still waiting for the notification. We have to see how it works out during the implementation stage. “Establishing a factory is not a day’s job. It requires process and time to gather resources, machinery, etc. It may take 5-7 months to see the effects of the special package,” he added.

Replying to the question on Free Trade Agreement (FTA) between India-EU, he said that the FTA between India and EU is much needed and would help in promoting exports to the region. We are requesting the government to take necessary steps and expedite the negotiations.

Commenting on the impact of Brexit, Rajani said Indian exporters need not be concerned as of now. There is still confusion prevailing on the issue as Brexit has not happened yet. The process of UK’s exit from the EU may take 2 years as per Article 50 of the Lisbon Treaty.

“However, if it happens then we have to deal with UK separately, he added.