Amended Technology Upgradation Fund Scheme (ATUFS)

ATUFS is a government-backed financial support programme designed to promote technology upgrades in the textile value chain. You receive capital subsidy benefits when you invest in benchmarked machinery or modern manufacturing equipment. The primary goal of the scheme is to improve global competitiveness, efficiency, and export capacity of players in the Indian textile ecosystem. You can apply online and receive support for eligible machinery once your investment is verified.

The core purpose of the ATUFS is to drive growth and efficiency in the textile sector. The scheme intends to:

• Encourage technology advancement in the textile and jute sectors

• Promote global competitiveness in manufacturing and exports

• Replace outdated equipment with benchmarked machinery standards

• Improve labour productivity and energy efficiency

• Support capital-intensive textile manufacturing operations

• Strengthen the value chain from fibre to finishing

The ATUFS scheme provides targeted financial assistance, reducing the burden of capital expenditure on your business. You receive a direct Capital Investment Subsidy (CIS) upon successful project completion and verification.

• Capital subsidy on eligible machinery investments 

• Support for technical textiles and apparel manufacturing 

• Improved production quality with advanced technology

• Faster processing and reduced operational wastage

• Incentives for both new and existing units

• Strengthened export opportunities due to improved compliance

You must meet strict criteria regarding your entity status, machinery acquisition, and project execution to qualify for the ATUFS scheme. Careful adherence to these guidelines streamlines the application and approval process.

Eligible Entities

• Existing textile manufacturing units

• New units investing in benchmarked machinery

• Registered MSMEs and large enterprises

• Units engaged in weaving, spinning, processing, apparel, or jute manufacturing

Eligible Machinery

• Benchmark-certified weaving and processing machinery

• Garmenting and apparel automation equipment

• Modern textile testing and quality assurance systems

• Machinery listed under official ATUFS guidelines

Eligibility for Assistance

• Machinery being purchased must be new and not second-hand

• The invoice and payment proof must match your claimed investment

• Machinery installation must occur within the scheme timeline

• Your unit must register on the iTUFS portal for verification

Gathering the required documents early speeds up your claim process. The following list covers critical proofs related to your entity, financing, and machinery installation.

• Company Registration Proof

• Industry Registration

• Loan Sanction Letter

• Loan Disbursement Proof

• Purchase Invoice(s)

• Proof of Payment

• Machinery Details

• Installation/Commissioning Report

• Online Application Form

• Declarations

The application process is entirely online through the iTUFS portal, managed by the Ministry of Textiles. You must complete the installation stage before initiating the claim.

1. Visit the official iTUFS portal

2. Register your manufacturing unit and upload the required documentation

3. Fill in your machinery details and submit technical certificates

4. Upload invoices, payment details, and installation proof

5. Submit the application for scrutiny by the designated authority

6. Track application progress through the portal until approval

7. Once verified, the subsidy will be processed as per the eligibility rules

After successful verification and approval from all stakeholders, the Ministry of Textiles authorises release of the Capital Investment Subsidy (CIS). The subsidy amount is then typically released to your lending institution.

The Amended Technology Upgradation Fund Scheme enables you to upgrade machinery and improve operational efficiency without bearing the full cost of it. The subsidy reduces your financial burden, while helping enhance production standards, and strengthen export readiness.

However, subsidy disbursement follows verification timelines, and many businesses require working capital before approval. In such cases, you can explore and compare instant business loan options on Bajaj Markets to secure timely funding. Multiple lending partners offer competitive interest rates, flexible repayment terms, and collateral-free financing up to ₹80 Lakhs at a starting interest rate of 14% p.a., to bridge the gap and ensure continuous cash flow.