Minutes of the Meeting of the Committee Chaired by the Secretary (Textiles) on Study by NABARD Consultancy Services (NABCONS) on committed liability under Technology Upgradation Fund Scheme (TUFS)

Circular No.ES/ 39 /2018-19 April 27, 2018

To: Members of the Council

Sub.: Minutes of the Meeting of the Committee Chaired by the Secretary (Textiles) on Study by NABARD Consultancy Services (NABCONS) on committed liability under Technology Upgradation Fund Scheme (TUFS)

Dear Member,

We would like to inform you that a Meeting of the Committee chaired by Shri Anant Kumar Singh, Secretary (Textiles) was held on 19^th April, 2018 at New Delhi to discuss and examine the issues relating to finalization of the study by NABCONS on committed liability under Technology Upgradation Fund Scheme (TUFS).

Shri Sri Narain Aggarwal, Chairman, SRTEPC and the Executive Director of the Council have attended the Meeting besides Smt. Pushpa Subrahmanyam, Special Secretary and Dr. Kavita Gupta, Textile Commissioner.

Officials from the Ministry of Textiles, RBI, Department of Financial Services (DFS), NABCONS and representatives from the other Associations were also present during the meeting.

The Committee deliberated on the roadblocks faced by NABCONS in timely completion of the study.

The relevant extract of the Minutes are given below:

NABCONS shall furnish the following two essential documents while furnishing the report on the proforma given in the MoU in respect of each case.

Sanction letter/sanction memorandum issued by the competent authority of lending agency clearly stating that the loan was sanctioned under TUFS and what was the machinery component in that.
Calculation sheet on committed liability.

The above documents would be duly signed by the NABCONS and the competent authority in the TUFS Cell of the Lending Agency.

NABCONS informed that as per the Term of Reference (ToR), only Committed liabilities of 9303 cases were to be assessed in the study. NABCONS further informed that several cases were closed after receiving full repayment of loan from the unit and subsidy from the Government. Textile Commissioner agreed to drop these cases from the study since there was no pending liability on the part of the Govt. of India.

In respect of those cases (out of 9303 accounts under ToR) where the units have represented that although the account was closed because loan was fully repaid but complete subsidy was not released, such cases would be entertained for which Textile Commissioner shall provide details of Accounts to NABCONS to verify the claims.

NABCONS informed that a few lending Agencies do not provide necessary documents despite their efforts. Secretary (Textiles) advised them to inform office of Textile Commissioner with specific details so that they would write to the Banks. In the event it does not bear result the matter the same would be referred to DFS for further action.

NABCONS was requested to furnish data of such completed cases of committed liabilities to the Textile Commissioner in batches instead of waiting for completion of assessment of all 9303 accounts.

Representatives of NABCONS suggested that the report of 100 cases completed by them be examined and accepted by the Textile Commissioner so that they would be able to proceed with the remaining cases.

After due deliberations it was felt that NABCONS shall take out the types of cases having difference of opinions and meet the Textile Commissioner on 26^th April, 2018 to resolve them.

In case they are unable to resolve some of them, it should be brought to the notice of the Secretary (Textiles) immediately so that it is resolved without any further delay.

Finally NABCONS should ensure that the report clearly and categorically establishes the eligibility and veracity of a claim under the guidelines of the respective schemes of TUFS with enough documentary proof.

Members facing the above mentioned issues may kindly pursue the matter with their Lending Agencies for submitting the documents required to NABCONS.

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR