Amended Technology Upgradation Fund Scheme (ATUFS)

ATUFS

The Amended Technology Upgradation Fund Scheme (ATUFS) is a flagship initiative by the Ministry of Textiles, Government of India, designed to accelerate modernization and technology upgradation in the textile industry. By supporting investments in state-of-the-art machinery and equipment, ATUFS aims to make Indian textiles globally competitive, generate employment, and boost exports under the “Make in India” campaign.

  • Sponsoring Agency/Dep.: Ministry of Textiles, Government of India.

Objectives

  • ☉ Promote Ease of Doing Business: Simplify processes and encourage investment in the textile sector.
  • ☉ Generate Employment: Create new jobs through modernization and expansion of textile units.
  • ☉ Boost Exports: Enhance the competitiveness of Indian textiles in global markets by adopting advanced technology.
  • ☉ Support “Make in India”: Strengthen domestic manufacturing capabilities in textiles.

Eligible Beneficiaries

All entities engaged in specified textile sectors in India, including:

  • ☉ Textile manufacturing units
  • ☉ Weaving, knitting, and processing units
  • ☉ Garment and apparel manufacturers
  • ☉ Technical textiles producers

Eligible Activities

Technology Upgradation: Investment in new, benchmarked machinery and equipment for:

  • ☉ Weaving
  • ☉ Knitting
  • ☉ Processing
  • ☉ Garment manufacturing
  • ☉ Technical textiles

Eligible Components

  • ☉ Benchmark Machinery: Only machinery and equipment specified under the scheme for various textile sectors qualify for subsidy.
  • ☉ Sector-Specific Upgradation: Each eligible sector has a list of approved technologies and machines.

Benefits

  • ☉ Capital Investment Subsidy: Credit-linked subsidy ranging from 10% to 15% of the eligible machinery cost, subject to sector-specific ceilings.
  • ☉ Financial Support: The subsidy is provided as a reimbursement after verification of investment and installation.
  • ☉ Encouragement for Modernization: Helps textile units reduce costs, improve quality, and increase productivity.

How to Apply for ATUFS

  1. ☉ Check Eligibility: Ensure your business and planned investments align with the scheme’s eligible sectors and machinery list.
  2. ☉ Prepare Project Report: Create a detailed project report outlining the modernization plan and expected outcomes.
  3. ☉ Apply Through Bank: Submit your application and project documents to a lending bank or financial institution participating in the scheme.
  4. ☉ Install Machinery: Procure and install the eligible machinery as per scheme guidelines.
  5. ☉ Claim Subsidy: Submit proof of installation and expenditure to claim the subsidy from the Ministry of Textiles via your bank.

Important Documents

  1. ☉ Business registration certificate (Company/Firm/LLP/Proprietorship)
  2. ☉ Detailed Project Report (DPR) with modernization plan
  3. ☉ Quotation/invoice for machinery and equipment
  4. ☉ Proof of machinery installation (photos, bills, etc.)
  5. ☉ PAN card and GST registration of the business
  6. ☉ Bank account details and loan sanction letter (if applicable)
  7. ☉ Audited financial statements for the last 2-3 years (if available)
  8. ☉ Any other documents specified by the Ministry of Textiles or the lending bank

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FREQUENTLY ASKED QUESTIONS

Got any questions?

All textile manufacturing entities in eligible sectors (weaving, knitting, processing, garments, technical textiles) can benefit.

The scheme offers a credit-linked capital investment subsidy of 10% to 15%, depending on the sector and subject to maximum limits

The subsidy is reimbursed after the installation and verification of eligible machinery through the lending bank.

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