Amended Technology Upgradation Fund Scheme (ATUFS)

What is the Amended Technology Upgradation Fund Scheme (ATUFS)?

The Amended Technology Upgradation Fund Scheme (ATUFS) is a Central Sector industry-incentive scheme of the Ministry of Textiles, administered by the Office of the Textile Commissioner. ATUFS is the latest version of the long-running Technology Upgradation Fund Scheme (TUFS), first launched in 1999, which has supported modernisation across India's textile value chain for more than two decades.

ATUFS provides a one-time Capital Investment Subsidy (CIS) to textile manufacturing units that install eligible, modern, benchmarked machinery. The goal is to make Indian textile production more competitive, boost exports and create employment by reducing the cost of upgrading old equipment to world-class technology.

Subsidy structure

According to the Ministry of Textiles, ATUFS reimburses part of the cost of eligible machinery through two segments:

• Segment 1 to garmenting and technical textiles: a 15% Capital Investment Subsidy, subject to a ceiling of Rs 30 crore per entity.
• Segment 2 to other textile segments such as weaving, weaving preparatory, knitting, processing, jute, silk and made-ups: a 10% Capital Investment Subsidy, subject to a ceiling of Rs 20 crore per entity.

The overall subsidy that a single entity can draw is capped at Rs 30 crore. The subsidy is paid once, after the machinery is installed and verified. It is not a recurring grant or an interest subsidy.

Key features

• ATUFS is a credit-linked scheme: the unit must take a term loan from a notified lending agency for the upgradation.
• Only benchmarked machinery on the scheme's approved list qualifies.
• The scheme was framed for the period 2015-16 to 2021-22 with a defined budget outlay; new machinery registrations under it have since closed while sanctioned cases are settled.

Who is eligible for ATUFS?

A unit can apply if:

• It is a registered textile manufacturing entity. A company, partnership firm, LLP, co-operative or society engaged in textile production.
• It invests in eligible benchmarked machinery under one of the covered segments.
• It has a term loan sanctioned by a notified lending agency for the investment.
• It completes machinery installation and passes joint inspection.

You cannot apply if:

• You are an individual citizen, household or handloom weaver seeking a personal benefit — ATUFS is an industry incentive, not a citizen scheme, and individuals cannot apply for a personal subsidy.
• Your investment is in second-hand machinery or equipment outside the benchmarked list; such investment is not eligible.
• Your unit self-funds the machinery without a term loan from a notified lending agency, which breaks the credit-linked requirement.

Because ATUFS is a firm-level incentive, the "beneficiary" is the manufacturing enterprise, and the wider benefit, modern jobs and competitive exports: flows to the sector rather than to any one person.

What documents are required for ATUFS?

How to apply for ATUFS

1. Confirm the current status of the scheme and the benchmarked machinery list on the i-TUFS portal under txcindia.gov.in.
2. Arrange a term loan for the technology upgradation from a notified lending agency (a bank or financial institution recognised under the scheme).
3. Register the unit and the investment on the i-TUFS platform, obtaining a Unique Identification (UID) for the eligible machinery.
4. Purchase and install the benchmarked machinery, keeping all invoices and payment proofs.
5. Have the installation verified by joint inspection and a chartered accountant, and submit the claim through the lending agency to the Office of the Textile Commissioner.
6. On approval, the Capital Investment Subsidy is released to the unit's bank account.

How much benefit does ATUFS provide?

ATUFS provides a one-time Capital Investment Subsidy of 15% (up to Rs 30 crore) for garmenting and technical textiles, or 10% (up to Rs 20 crore) for other segments, on eligible benchmarked machinery, with an overall cap of Rs 30 crore per entity. Because it is credit-linked and paid only after verified installation, the actual amount depends on the size of the investment and the segment.

Help and where to verify

• Office of the Textile Commissioner: 022-22001050
• Portal: txcindia.gov.in (i-TUFS)

ATUFS has fixed scheme periods and revised guidelines over time, so verify whether new registrations are open and confirm the exact subsidy rates and caps on txcindia.gov.in before committing to any machinery purchase.