"Some instances of banks charging higher interest rates on financial assistance to TUF beneficiaries have come to our notice and we are taking steps to curb such practices," textile commissioner BC khatua said. The scheme offers interest rate concession of 5 per cent on loans to textile industries for upgradation of their plant and machinery. He assured the industry to redress their grievances of this nature and asked them to compare interest charges applied on their TUF loans to their previous loans to ascertain any difference.

"Under TUF, we have made sanctions worth Rs 1,188 crore to 91 applicants by October-end, this would have crossed Rs 1,300 crore by November end," he said adding disbursals touched Rs 190 crore by October.

He also said scheme was "going on well", and they received 162 applications for loans worth Rs 4,277 crore by October-end. Against sanctions to various sectors-Rs 265 crore for processing, Rs 247 crore for composite mills, Rs 429 crore for spinning mills and Rs 175 crore for weaving sectors, the disbursals were Rs 81 crore, Rs 52 crore, Rs 19 crore and Rs 17 crore respectively, he said. Low disbursals for spinning mills when compared to sanctions was due to their failure to meet the conditions set by banks at various stages of disbursal, he added.