Amended Technology Upgradation Fund Scheme (ATUFS)

Amended Technology Upgradation Fund Scheme (ATUFS)

Launched by: Ministry of Textiles, Government of India
Implementing Agency: Office of the Textile Commissioner, Mumbai
Scheme Category: Capital Investment / Technology Upgradation Scheme
State / UT: All India
Beneficiary Type: Textile and Apparel Industry Units
Subsidy Type: Capital Investment Subsidy (CIS)
Application Mode: Online (iTUFS Portal) & Offline (via Lending Institutions)

🏛️ About the Scheme

The Amended Technology Upgradation Fund Scheme (ATUFS) was launched by the Ministry of Textiles on 13 January 2016 to promote ease of doing business, boost employment generation, exports, and encourage “Zero Defect – Zero Effect” manufacturing in India’s textile value chain.

The scheme provides one-time Capital Investment Subsidy (CIS) for modernization and technology upgradation in textile and garment manufacturing units.
It replaces the earlier Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) and is effective for 7 years (up to 31 March 2022).

It aims to support investments in employment-intensive and technology-intensive segments of the textile value chain, including weaving, knitting, processing, garmenting, jute, silk, and handloom sectors.

🎯 Objectives

• To facilitate technology upgradation and modernization of the textile industry.
• To promote investment, employment, and export competitiveness.
• To encourage energy-efficient, eco-friendly, and quality-enhancing manufacturing.
• To promote import substitution and global competitiveness of Indian textiles.

📅 Application Window

• Scheme effective from 13 January 2016 to 31 March 2022.
• Application open for approved term loans sanctioned during scheme period.
• Claims must be filed within 6 months of machinery installation.

🏁 Scheme Summary Table

👥 For Whom is the Scheme

• Units registered under Companies Act / MSME Act or with the Directorate of Industries / State Textile Departments.
• Textile and Apparel sector entrepreneurs investing in:
  • Garmenting and Technical Textiles
  • Weaving (including shuttleless looms)
  • Processing, Jute, Silk, and Handloom sectors
  • Composite units operating across multiple segments.

🚫 Who Cannot Apply

• Units not registered under the Companies Act / MSME Act or State Industrial Directorate.
• Applicants not taking term loans for eligible machinery.
• Units seeking repeat assistance under ATUFS (one-time subsidy only).
• Defaulters of previous TUFS loans or ineligible machinery importers.

✅ Eligibility Criteria

• The unit must be legally registered under Companies Act, MSME Act, or State Industrial Department.
• Must avail term loan from a Notified Lending Agency (Public Sector Bank / NBFC).
• Must purchase new, eligible machinery listed under ATUFS guidelines.
• Must submit Unique Identification Number (UID) from Office of Textile Commissioner after approval.
• Each unit is eligible for one-time subsidy only.

Documents Required

1. Company registration certificate (CIN / Udyam Registration).
2. Copy of sanctioned term loan.
3. Machinery invoice and installation certificate.
4. Chartered Engineer’s certificate for eligible investment.
5. PAN, GSTIN, and Aadhaar details.
6. Factory license / land ownership proof.
7. Bank details for subsidy disbursement.
8. Proof of submission of claim through iTUFS Portal.

💻 How to Apply Online

• Visit the iTUFS Portal: https://itufstextiles.gov.in
• Register your textile unit using company details and Udyam ID.
• Upload loan sanction, machinery purchase, and installation documents.
• Apply for UID (Unique Identification Number).
• Submit the claim form online within 6 months of machinery installation.
• After verification by the Office of Textile Commissioner, subsidy is released through PFMS to your bank account.

How to Apply Offline

• Submit project proposal and application to your lending bank / financial institution.
• Attach documents proving eligibility, term loan sanction, and machinery procurement.
• The bank forwards application to Office of the Textile Commissioner.
• UID and claim processing follow through official verification.

💰 Payout / Subsidy Pattern

Note: If a unit has availed subsidy under RR-TUFS earlier, it is eligible only for the balance subsidy under ATUFS.

Maximum total subsidy per entity: ₹30 crore.

💎 Benefits (Detailed)

🔹 1. Financial Benefits

• Up to 15% capital subsidy on investment in new machinery.
• Financial support to reduce cost burden of technology upgradation.
• Access to low-interest term loans through government-notified lenders.

🔹 2. Technological Modernization

• Encourages purchase of modern, energy-efficient, and pollution-control machinery.
• Helps replace obsolete equipment with high-speed, automated systems.
• Boosts productivity, quality, and export readiness.

🔹 3. Employment Generation

• Creates large-scale employment, particularly for women and rural workforce.
• Promotes Make in India through localized textile value chains.

🔹 4. Export Competitiveness

• Enhances export potential through quality improvement and productivity gains.
• Reduces dependence on imports by encouraging domestic production.

🔹 5. Sectoral Inclusivity

• Benefits all sub-sectors: garmenting, weaving, knitting, processing, jute, silk, and handloom.
• Special focus on employment-intensive units like garmenting and technical textiles.

🔹 6. Ease of Doing Business

• Simplified claim and verification through online iTUFS portal.
• Transparent subsidy release mechanism via Direct Benefit Transfer (DBT).

Status Check

• Visit https://itufstextiles.gov.in
• Login using your registered UID and password.
• Navigate to “Application Status / Claim Tracking.”
• Check claim approval, payment date, and transaction ID under PFMS.

🗂️ Follow-up & Escalation

If your claim is pending or rejected:

• Contact your lending institution’s TUFS cell.
• Email: atu.fs@nic.in / / textilecommr-mum@nic.in
• Write to:
  • Office of the Textile Commissioner
  • Ministry of Textiles, Government of India
  • Navi Mumbai – 400703.
• Helpline: 022-2850 1653 / 2850 1695

☎️ Contact

Nodal Ministry: Ministry of Textiles, Government of India
Implementing Agency: Office of the Textile Commissioner, Mumbai
Address: NTC House, 15 N.M. Marg, Ballard Estate, Mumbai – 400001
📞 Phone: +91-22-2850 1653 / 2850 1695
📧 Email: atu.fs@nic.in

💬 FAQs

Q1. What is ATUFS?
It is a credit-linked capital subsidy scheme for textile units investing in new technology.

Q2. Who implements ATUFS?
The Office of the Textile Commissioner, Mumbai, under the Ministry of Textiles.

Q3. How much subsidy can a unit get?
Up to ₹30 crore as a one-time capital investment subsidy.

Q4. Is the scheme open to MSMEs?
Yes. MSME units registered under Udyam / State Directorates are eligible.

Q5. Can used or refurbished machinery be included?
No. Only brand new eligible machinery as per scheme list is covered.

Q6. How long does claim settlement take?
Typically within 90–120 days after submission of complete documents.

Q7. Can one company apply for multiple projects?
Yes, if under distinct units, but total subsidy cannot exceed ₹30 crore.

Q8. Is this scheme still active?
It covered investments made up to 31 March 2022. For new proposals, ATUFS extension and new TUFS guidelines (2022–27) are under review.