Amended Technology Upgradation Fund

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Details

The Ministry of Textiles introduced the Amended Technology Upgradation Fund Scheme (ATUFS). This scheme aims to facilitate investment, employment, productivity, quality, and import and export substitution in the textile industry. It also indirectly promotes investments in the manufacturing of machinery for textiles. It is a credit-linked subsidy scheme for capital investment in textile manufacturing under the Government of India’s Make in India and Zero Defect and Zero Effect initiatives.

Objectives

  • Export and employment generation, especially to women, by encouraging the garment and apparel industry and increasing India’s share in global exports.
  • Promotion of technical textiles for export and employment.
  • Promotion of converting existing looms to better technology looms to improve quality and productivity.
  • Encourage better quality in the processing industry and check the need for the import of fabrics by the garment sector.

Benefits

The eligible individual entities (not units) are entitled to get reimbursement of the Capital Investment Subsidy (CIS) according to the below rates:

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  • Weaving using new looms that are shuttle-less processing silk, handloom, and jute (includes weaving and knitting preparatory) at the rate of CIS 10% subject to the upper limit of Rs.20 crore
  • Technical textiles and garments at the rate of CIS 15% subject to the upper limit of Rs.30 crore.
  • Multiple composite units/segments where the capital investment for technical textiles and garments is less than 50% of the project cost at the rate of CIS 10% subject to the upper limit of Rs.20 crore.
  • Multiple composite units/segments where the capital investment for technical textiles and garments exceeds 50% of the project cost at the rate of CIS 15% subject to the upper limit of Rs.30 crore.

Eligibility

The following entities are eligible to get the credit-linked subsidy under this scheme:

  • Handloom sector
  • Silk Sector
  • Jute Sector
  • Technical textiles
  • Madeup/garment manufacturing
  • Processing fibres, fabrics, made-up, garments and yarns
  • Weaving preparatory and knitting
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