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Amended Technology Upgradation Fund

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.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

ATUFS benefit is available for investment in benchmarked machinery in the following segments: | - 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: | S. NoSegmentCIS RateCIS Cap per Entity1Garmenting, Technical Textiles15% on eligible machines₹30 crore2Weaving (Shuttle-less looms, preparatory, Jute, Silk, Handloom)10% on eligible machines₹20 crore3(a)Composite units (Garmenting + Technical Textiles) > 50% investment in those segments15%₹30 crore3(b)Composite units with < 50% investment in Garmenting & Technical Textiles10%₹20 crore

Who can apply

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

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common 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

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.