Scheme In-situ Upgradation of Plain Powerloom

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Technology Upgradation Fund Scheme (TUFS), which was introduced on 01.04.1999 has helped overcome technological obsolescence and created economies of scale in the Textile Sector. The decentralized powerloom sector has also derived substantial benefits under TUFS by installing shuttleless looms and automatic looms. However, some of the economically weaker powerloom units in India are still in their original shape and desire to go for In-situ modernization for their existing plain power looms.

Such requirement of Insitu upgradation by the economically weaker Powerloom units cannot be met under TUFS as

(i) The minimum benchmark is Automatic Looms

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(ii) such low-end plain power-loom owners do not find it feasible to straightaway upgrade to Auto Looms.

Therefore Government decided to provide financial assistance to economically weaker plain power looms units for the upgradation of their existing ordinary looms with additional features like weft stop motion, warp stop motion, semi-positive let-off motion, efficient breaking device, anticrack device, replacement of metallic parts by self lubricative nylon parts, dobby, jacquard etc.


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The prime objective of the scheme is to provide financial assistance to economically weaker low-end powerloom units where the benefits of the TUFS have not been reached, to improve the quality and productivity of the fabric being produced by upgrading existing plain looms with certain additional attachments, and to enable them to face competition in domestic and international markets.


  1. Govt. of India shall provide financial assistance to the extent of 50% of the cost of the upgradation attachments/kits, dobby and jacquard subject to a maximum subsidy of Rs. 15,000/- per powerloom, and the maximum subsidy to a powerloom unit holding eight powerlooms would be Rs. 1,20,000/-.
  2. The office of TXC would prescribe maximum rates for these admissible attachments from time to time on enrolling/registering the manufacturers of the attachments/kits.
  3. The above subsidy will be extended for both credit-linked or otherwise.
  4. A beneficiary who is already covered/has availed benefits under the scheme would be eligible to get fresh benefits of the scheme for subsequent looms owned by the unit only after a period of three years.


  1. A powerloom permit/acknowledgment against the Information Memorandum issued by the Regional Office of the Textile Commissioner for installation of the Powerlooms is a pre-requisite for availing of assistance under the scheme.
  2. The size of the powerloom unit as per the Powerloom Permit / Acknowledgement for availing the benefit under the scheme is a maximum of eight existing plain powerlooms. Preference would be given to those units having a maximum of two to four looms in household units and/or within one shed among the eligible units.
  3. A unit should have an electricity bill in its name or in the name of the owner of the unit/power-sharing agreement between the lessor and lessee if the premises are on a rent basis.

Application Process


  1. New indigenous attachments, dobby and jacquard purchased from indigenous manufacturers empanelled/registered with the Office of the Textile Commissioner or their authorised distributers / dealers shall be eligible under this scheme. The right of the Textile Commissioner is reserved for the selection criteria for empanelling / registering the attachment / kit manufacturers. A list of eligible machinery manufacturers is at Appendix- I. (will be included as soon as it is ready)
  2. The above attachments, on which subsidy has been availed under this scheme, shall not be eligible for any other subsidy provided by the Government of India under any other scheme.
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