R1.75bn ring-fenced for textile upgrades

He made it clear in his reply on Monday, 12 April 2010, that allocations will be based on competitiveness upgrading, including equipment, developing people, improving manufacturing processes and materials used or developing new products.

"The funds are managed by the Industrial Development Corporation through the clothing and textiles competitiveness programme unit," Patel said, adding hat a committee (comprising IDC, the DTI and independent representatives) is responsible for approval of the applications.

"The decision will be taken by the committee based on recommendations from a due diligence exercise that will consider the manufacturing value-add of a company to determine an upgrading 'credit' that is ring-fenced," he said.

Qualifying companies will also need to comply with tax, environmental, labour and FICA legislation.