Amended Technology Upgradation Fund Scheme (ATUFS) is a government scheme aimed to support the textile industry of the country with capital investment subsidies.
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Replace outdated equipment with benchmarked machinery standards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
The subsidy rate varies significantly based on the type of investment and the specific segment of the textile industry you operate in. The higher subsidy rates aim to incentivise niche, high-value-added sectors like garments and technical textiles. Understanding this structure is crucial for maximising your benefit under the ATUFS.
| Sector / Category | Subsidy Rate | Cap on Subsidy |
|---|---|---|
Garmenting and Apparel |
15% |
₹30 Crore |
Technical Textiles |
15% |
₹30 Crore |
Weaving, Knitting, Spinning, Processing, Jute |
10% |
₹20 Crore |
Composite units with > 50% investment in Garmenting & Technical Textiles |
15% |
₹30 Crore |
Composite units with < 50% investment in Garmenting & Technical Textiles |
10% |
₹20 Crore |
This specific structure ensures that the subsidy is weighted toward sectors offering maximum employment generation and technical advancement. The Amended Technology Upgradation Fund Scheme provides a substantial financial cushion for your modernisation project.
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.
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
Benchmark-certified weaving and processing machinery
Garmenting and apparel automation equipment
Modern textile testing and quality assurance systems
Machinery listed under official ATUFS guidelines
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 Indian government offers several programs to support the growth and efficiency of Indian entrepreneurs with financial benefits. The benefits include subsidies, loan assistance, and promotional grants.
| Scheme Name | Purpose | Application Type |
|---|---|---|
Coir Vikas Yojana - Export Market Promotion Scheme |
Export expansion for coir units |
Support |
Swachhta Udyami Yojana |
Business support for sanitation equipment |
Loan |
Sanitary Marts Scheme |
Assistance for sanitation business units |
Loan |
National Livestock Mission (Rural Poultry Entrepreneurship) |
Breed development and poultry infrastructure |
Loan/Subsidy |
Industrial R&D Promotion Programme |
Support for R&D units |
Recognition/Support |
Production Linked Incentive Scheme (Auto) |
Technology improvement and manufacturing support |
Subsidy |
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) |
Cluster development for traditional sectors |
Grant |
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.
The subsidy rate depends on your specific sector of operation. You can receive a Capital Investment Subsidy (CIS) of either 10% or 15% on the eligible machinery cost. For high-priority segments like garments and technical textiles, the rate is 15%, capped at ₹30 Crore per entity. Other core weaving, silk, or jute segments receive 10%, capped at ₹20 Crore.
Yes, the Amended Technology Upgradation Fund Scheme is specifically a capital investment subsidy linked directly to the purchase and installation of new, benchmarked machinery. The scheme’s primary function is to help you acquire modern technology. You cannot claim this subsidy for second-hand equipment, or for routine maintenance or repairs.
The ATUFS scheme supports a wide array of textile projects. These include investments in weaving, weaving preparation, and knitting. Additionally, it covers the processing of fibre, yarn, fabric, and garments. Crucially, the scheme emphasises high-growth areas like technical textiles and specialised sectors such as handloom, silk, and jute.
You can easily track your application status online after submission on the iTUFS portal. Once you submit the required forms and documents, the system generates a Unique Identification Number (UID). You can use this UID to log in and monitor the progress of your application through the verification and joint inspection stages until the final fund release.