The Amended Technology Upgradation Fund Scheme (ATUFS), under the Ministry of Textiles, aims to facilitate employment, investment, quality, productivity, as well as import and export substitution in the textile industry while also indirectly promoting investments in the manufacturing of machinery for textiles.
This is a credit-linked subsidy scheme for capital investment in the manufacturing and textiles sector under the Make in India as well as Zero Defect and Zero Effect initiative of the Government of India.
Features & Benefits of ATUFS
Eligible individual entities (not units) are entitled to avail reimbursement of the Capital Investment Subsidy (CIS) according to the rates that are given below:
|Segment||Rate of CIS|
|Weaving using new looms that are shuttle-less processing handloom, silk, and jute (includes knitting and weaving preparatory)||10% subject to Rs.20 crore upper limit|
|Technical textiles, garmenting||15% subject to Rs.30 crore upper limit|
|Multiple segments/composite unit where the capital investment for garmenting and technical textiles is less than 50% of project cost||10% subject to Rs.20 crore upper limit|
|Multiple segments/composite unit where the capital investment for garmenting and technical textiles exceeds 50% of project cost||15% subject to Rs.30 crore upper limit|
The following entities are eligible for this scheme:
- Silk sector
- Handloom sector
- Technical textiles
- Jute sector
- Madeup/garment manufacturing
- Processing fabrics, fibres, garments, madeup, and yarns
- Weaving preparatory, weaving, and knitting
After the machinery is installed, the applicant can submit an online application for undergoing a joint inspection.