In order to overcome any possible procedural hassles and also delay and confusion over the communication to beneficiaries on the Textile Upgradation Fund Scheme, the textile ministry has decided to put every thing online. Beneficiaries can check all information from application to sanction of fund and subsidy and related matters with regard to TUF online. Once the software is ready it would be launched.

The online facility will be based on four parts: beneficiaries, bankers, the office of textile commissioner and the ministry. This will ensure no gap in the process from application to sanction. This decision is as a response to problems raised by mills on specific issues including non-receipt of subsidy and the blackout period of the scheme. Of the total sanction of Rs 19,500 crores, there is a committed liability of over Rs 9,500 crores.

Since the industry requires at least Rs 2,500 crores as fund each year, the department has sought additional allocation to meet the demand, so that more mills can be modernised and a competitive edge can be given to the Indian textile industry. Of the 23 lakh power looms, only about 1.25 lakh looms have taken advantage of TUF and other schemes.