Amended Technology Upgradation Fund

Description
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.

Exclusions
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Benefits
• Weaving, weaving preparatory, and knitting
• Processing of fibres, yarns, fabrics, garments, and made-ups
• Technical textiles
• Garment/made-up manufacturing
• Handloom sector
• Silk sector
• Jute sector
• Capital Investment Subsidy (CIS) is provided as per segment and rates below:

Eligibility Criteria
1. > **Eligible Entities**
2. - Units must be registered under the Companies Act or as per MSME definitions.
3. - Units must have an acknowledgment of IEM (Industrial Entrepreneur Memorandum) or be registered with the respective State Directorate.
4. - Both existing and new units are eligible, subject to overall subsidy caps.
5. - If a unit has availed benefits under previous schemes like RRTUFS, only the remaining subsidy amount under ATUFS will be available.
6. > **Eligible Machinery**
7. - Only new benchmarked machinery from notified manufacturers or their authorized agents is eligible.
8. - A list of eligible machines is updated every year on April 1st by the Textile Commissioner.
9. - Second-hand machinery is not permitted.
10. - Accessories, attachments, and sample machines up to 20% of the machine cost are also eligible.
11. - Machines may be eligible for multiple segments unless restricted.
12. - Other essential machinery may be included later upon recommendation.
13. - UIDs (Unique Identification Numbers) are required for all eligible machines.
14. - Machinery must be purchased directly from authorized manufacturers or agents; certain cases of domestic purchases from authorized stockists may also qualify.
15. - The purchase date is determined by the commercial invoice date.
16. - Machine Identification Code (MIC) must be visibly inscribed on machines.
17. <br>
18. > **Eligibility for Assistance**
19. - Units must be registered and must be producing textiles as per the registered product line.
20. - Machinery must be verified during Joint Inspection Team (JIT) visits to claim benefits.

Application Process
Step 1: Step 1: A unit/applicant can apply for ATUFS after the machinery is installed for undergoing a joint inspection.
Online
Step 1: A unit/applicant can apply for ATUFS after the machinery is installed for undergoing a joint inspection.

Step 2: Step 2: The applicant can submit the ATUFS application online on the iTUFS online portal.
Online
Step 2: The applicant can submit the ATUFS application online on the iTUFS online portal.

Step 3: Step 3: Once the application is submitted, it will be forwarded to different stakeholders for verification.
Online
Step 3: Once the application is submitted, it will be forwarded to different stakeholders for verification.

Step 4: Step 4: A Unique Identification Number (UID) is generated and provided to the applicants.
Online
Step 4: A Unique Identification Number (UID) is generated and provided to the applicants.

Step 5: Step 5: Applicants can track the application online and can opt to get SMS/e-Mail updates about the application status through the UID.
Online
Step 5: Applicants can track the application online and can opt to get SMS/e-Mail updates about the application status through the UID.

Step 6: Step 6: After the stakeholders approve, the Ministry of Textiles will release the funds.
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Step 6: After the stakeholders approve, the Ministry of Textiles will release the funds.

Required Documents
• Company Registration & Eligibility
• Machinery Details
• Loan-Related Documents
• UID and i-TUFS Portal
• Joint Inspection Documents
• Declarations and Undertakings

Frequently Asked Questions
Q: What is the Amended Technology Upgradation Fund Scheme (ATUFS)?
A: **ATUFS** is a **credit-linked Capital Investment Subsidy** (CIS) scheme launched by the **Ministry of Textiles** to encourage investment, employment generation, quality improvement, and export promotion in the textile and garment industry.

Q: Who is eligible to apply for the ATUFS scheme?
A: **Eligible entities include:**

- Handloom sector
- Silk sector
- Jute sector
- Technical textiles
- Garment/made-up manufacturing
- Units involved in processing fibre, fabric, garments, or yarn
- Weaving preparatory and knitting units

**Note: Only individual entities, not individual units, are eligible.**

Q: What is the subsidy rate under the ATUFS scheme?
A: **The Capital Investment Subsidy (CIS) is available at:**

- **10% (up to ₹20 crore)** for **weaving** using new shuttle-less looms, silk, handloom, jute, etc.- **15% (up to ₹30 crore)** for **technical textiles** and **garments**- **10% (up to ₹20 crore)** for **composite units** where tech textiles/garments are &lt;50% of the cost- **15% (up to ₹30 crore**) for **composite units** where tech textiles/garments are &gt;50% of the cost

Q: What are the key objectives of ATUFS?
A: - Promote exports and employment, especially **for women**- Encourage **technical textiles**- Upgrade **loom technologies** to improve quality/productivity- **Reduce import dependency** by enhancing domestic textile quality
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Q: Is ATUFS applicable to machinery purchase?
A: **Yes**, the scheme is linked to **capital investment**, **particularly** **the installation of new machinery** in textile manufacturing, processing, and garmenting units.

Q: What is the process to apply under the ATUFS scheme?
A: - Install the eligible machinery
- Apply online via the [**iTUFS portal**](https://ipowertexindia.gov.in)- Application is verified by stakeholders
- **UID** is generated- Track progress and receive updates **via SMS/email**- **Post-approval**, funds are released by the Ministry
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Q: Is there any fee or document required for applying?
A: No **documents are required** at the initial application stage. However, machinery installation and **inspection by stakeholders** are mandatory for fund release.

Q: What kind of textile projects are supported under ATUFS?
A: **The scheme supports projects related to:**

- Weaving and knitting
- Technical textile production
- Fibre, fabric, and garment processing
- Apparel and made-up manufacturing
- Loom modernization in silk, handloom, and jute sectors

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Q: Can I apply for the scheme before installing machinery?
A: **No**. The application process can be initiated **only after machinery installation**, as it requires **joint inspection** by stakeholders before approval.

Q: How can I track my ATUFS application status?
A: Once submitted, a **Unique Identification Number (UID)** is generated. This UID can be used to **track your application online** and opt for **SMS/e-mail alerts** about its progress.