The Amended Technology Upgradation Fund Scheme (ATUFS) was introduced by the Ministry of Textiles to boost investment, employment, productivity, and quality in the textile industry while promoting import and export substitution. The scheme is a credit-linked subsidy program aimed at supporting capital investment in textile manufacturing under the Government of India’s Make in India and Zero Defect and Zero Effect initiatives. It also encourages investments in the manufacturing of machinery for textiles.
Objectives
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Export and Employment Generation:
Promote exports and generate employment, with a special focus on women in the garment and apparel sector. -
Technical Textiles Promotion:
Enhance the competitiveness of technical textiles for export and domestic markets. -
Modernization:
Facilitate the conversion of existing looms to advanced technology looms to improve quality and productivity. -
Quality Improvement:
Encourage better quality in the processing industry to reduce the need for imported fabrics.
Benefits
Eligible individual entities can receive reimbursement for their Capital Investment Subsidy (CIS) based on the following categories:
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Weaving (Shuttle-less, processing silk, handloom, and jute):
CIS at 10% of project cost, subject to an upper limit of ₹20 crore. -
Technical Textiles and Garments:
CIS at 15% of project cost, subject to an upper limit of ₹30 crore. -
Multiple Composite Units (Capital Investment < 50% of Project Cost):
CIS at 10% of project cost, subject to an upper limit of ₹20 crore. -
Multiple Composite Units (Capital Investment > 50% of Project Cost):
CIS at 15% of project cost, subject to an upper limit of ₹30 crore.
Eligibility
Entities eligible for the credit-linked subsidy under ATUFS include those operating in:
- Handloom sector
- Silk sector
- Jute sector
- Technical textiles
- Made-up/garment manufacturing
- Processing of fibres, fabrics, made-up articles, garments, and yarns
- Weaving preparatory and knitting
Application Process
Online
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Inspection:
After installing the machinery, the unit/applicant must undergo a joint inspection. -
Application Submission:
Submit the ATUFS application online via the iTUFS portal. -
Verification:
The application is forwarded to different stakeholders for verification. -
UID Generation:
A Unique Identification Number (UID) is generated and provided to the applicant. -
Tracking:
Applicants can track the status of their application online and opt for SMS/e-mail updates using the UID. -
Fund Release:
Once verified and approved by stakeholders, the Ministry of Textiles releases the funds.