Launched under the Ministry of Textiles, Amended Technology Upgradation Fund Scheme (ATUFS) is a credit linked subsidy scheme for capital investment in the textiles and manufacturing sectors. ATUFS is an initiative by the Government of India with aim of the ‘Make in India’ and ‘Zero Defect and Zero Effect’ campaigns. This scheme aims to promote investment in textile machinery manufacturing. ATUFS shall facilitate enhancement of employment, productivity, investment, exports and import substitution in the textile industry.
ATUFS – Eligibility Criteria
Entities that come under the following sectors are eligible to avail ATUFS:
- Garment/Made-up Manufacturing
- Processing of fibres, yarns, fabrics, garments and Made-up
- Technical Textiles
- Weaving, Weaving Preparatory
ATUFS – Features & Benefits
Every eligible individual entity (not the unit) will be entitled for reimbursement of Capital Investment Subsidy (CIS) under this scheme, as per the following rates:
|Segment||Rate of Capital Investment Subsidy (CIS)|
|Composite Unit/ Multiple segments*||10% subject to an upper limit of 20 crore|
|Composite Unit/ Multiple segments**||15% subject to an upper limit of Rs 30 crore|
|Garmenting, Technical Textiles||15% subject to an upper limit of Rs. 30 crore|
|Weaving for brand new Shuttle less looms (including weaving preparatory and knitting), processing jute, silk and handloom||10% subject to upper limit of Rs 20 crore|
* If the eligible capital investment in respect of Garmenting and technical textiles category is less than 50% of the project cost.
** If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost
Note: Second hand machineries will not be eligible under this scheme. The maximum subsidy of overall investment by an individual entity has been restricted to Rs. 30 crore under this scheme.
Steps to Apply for TUFS via iTUFS
If an individual entity wants to apply for TUFS, he/she can simply visit iTUFS online portal introduced by the ministry of Textiles and can fill in and submit the application form online
After the applicant submits the application, it shall proceed for verification to different stakeholders (Ministry of Textile, Textile Commissioner Office, Bank and others)
After the stakeholder’s approval, the Ministry of Textiles shall release the funds
Once the application process is initiated, a Unique Identification Number (UID) is generated and provided to the applicant
Applicant can use this UID to track the application online and can opt to get regular SMS/Email updates regarding the process or status
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