Amended Technology Upgradation Fund
Capital subsidy for benchmarked machinery · textile manufacturers · India
Textile manufacturers across India can receive a Capital Investment Subsidy (CIS) of 10–15% on new benchmarked machinery for garment, technical textile, weaving, processing, silk, jute, or handloom production under the Amended Technology Upgradation Fund Scheme (ATUFS). The subsidy cap is ₹30 crore per entity for garmenting/technical textiles and ₹20 crore for weaving sectors. Apply online through the iTUFS portal after machinery installation and joint inspection.
About This Scheme
Textile manufacturers across India can receive a Capital Investment Subsidy (CIS) of 10–15% on new benchmarked machinery for garment, technical textile, weaving, processing, silk, jute, or handloom production under the Amended Technology Upgradation Fund Scheme (ATUFS). The subsidy cap is ₹30 crore per entity for garmenting/technical textiles and ₹20 crore for weaving sectors. Apply online through the iTUFS portal after machinery installation and joint inspection.
Full official 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.
Benefits
- 15% Capital Investment Subsidy (CIS) for garmenting and technical textile units, capped at ₹30 crore per entity
- 10% CIS for weaving (shuttle-less looms), jute, silk, and handloom sectors, capped at ₹20 crore per entity
- Accessories and attachments up to 20% of machine cost are also eligible for subsidy
- Subsidy disbursed in stages after Joint Inspection Team (JIT) verification and stakeholder approvals
- Composite units (with mixed segments) are eligible at the rate applicable to their dominant investment segment
💡 Why Startups Should Care
Modern textile machinery dramatically improves productivity and quality, but capital costs are steep. ATUFS subsidizes that upgrade across the entire textile value chain — from handloom to technical textiles — making technology modernization financially achievable for manufacturers of all sizes.
Who Can Apply (Eligibility)
- Must be registered under the Companies Act or meet MSME definitions
- Must have an IEM (Industrial Entrepreneur Memorandum) acknowledgment or state Directorate registration
- Both new and existing textile manufacturing units are eligible
- Only new benchmarked machinery from notified manufacturers or their authorized agents qualifies — second-hand machinery is not permitted
- Units that previously received RRTUFS benefits can only claim the remaining subsidy balance under ATUFS
How to Apply
- Install the benchmarked machinery and arrange for a joint inspection.
- Apply for ATUFS after installation is complete and inspection is scheduled.
- Submit Certificate of Incorporation/MSME registration and IEM documentation.
- Undergo the joint inspection process to verify machinery installation.
- On verification, the capital subsidy is disbursed as per the applicable segment rate.
Frequently Asked Questions
What is the Amended Technology Upgradation Fund Scheme (ATUFS)?
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.
Who is eligible to apply for the ATUFS scheme?
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.
What is the subsidy rate under the ATUFS scheme?
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 <50% of the cost- **15% (up to ₹30 crore**) for **composite units** where tech textiles/garments are >50% of the cost
What are the key objectives of ATUFS?
- 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
Is ATUFS applicable to machinery purchase?
Yes, the scheme is linked to capital investment, particularly the installation of new machinery in textile manufacturing, processing, and garmenting units.
What is the process to apply under the ATUFS scheme?
- Install the eligible machinery
- Apply online via the iTUFS portal- Application is verified by stakeholders
- UID is generated- Track progress and receive updates via SMS/email- Post-approval, funds are released by the Ministry
Is there any fee or document required for applying?
No documents are required at the initial application stage. However, machinery installation and inspection by stakeholders are mandatory for fund release.
What kind of textile projects are supported under ATUFS?
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
Can I apply for the scheme before installing machinery?
No. The application process can be initiated only after machinery installation, as it requires joint inspection by stakeholders before approval.
How can I track my ATUFS application status?
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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Certificate of Incorporation under Companies Act or MSME Registration (Udyam Certificate)
- IEM (Industrial Entrepreneur Memorandum)
- Machinery purchase invoices and specifications