The Technology Upgradation Fund (TUF) for the textile industry is in for further liberalisation following poor offtake from the industry. According to the textile commissioner Mr. B. C. Khatua, co-option of more commercial banks by nodal agency, Industrial Development Bank of India (IDBI), providing discretionary powers to banks to fix own financial norms and formulation of a scheme aimed at  relaxing stringent EPCG norms for import of used machinery under TUF are in   the offing.

The offtake of funds during the first year of operation of the TUF scheme (1999-2000 fiscal)   has been tardy with projects valued at just around Rs. 5,600 crore, involving a funding of Rs.   2,895 crore,  being given the green signal. Only 163 projects, out of the 289 sanctioned loans,   have been disbursed funds of Rs. 752 crore under the scheme.