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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