Amended Technology Upgradation Fund in Varanasi
ATUF
Ministry of Textiles
Guidance for businesses in Varanasi
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.
At a glance
- Garmenting, Technical Textiles
- 15% on eligible machines
- Weaving (shuttle-less looms, preparatory, Jute, Silk, Handloom)
- 10% on eligible machines
- Composite units (Garmenting + Technical Textiles) > 50% investment
- 15%
- Composite units < 50% investment in Garmenting & Technical Textiles
- 10%
Benefits
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:
Garmenting, Technical Textiles:
- 15% on eligible machines, CIS cap ₹30 crore per entity.
Weaving (shuttle-less looms, preparatory, Jute, Silk, Handloom):
- 10% on eligible machines, CIS cap ₹20 crore per entity.
Composite units (Garmenting + Technical Textiles) > 50% investment in those segments:
- 15%.
Composite units with < 50% investment in Garmenting & Technical Textiles:
- 10%.
Eligibility
- Eligible Entities:
- Units registered under the Companies Act or as per MSME definitions, with an IEM acknowledgment or registration 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.
- Eligible Machinery:
- Only new benchmarked machinery from notified manufacturers or authorized agents (list updated annually on April 1st by the Textile Commissioner); second-hand machinery is not permitted. Accessories, attachments, and sample machines up to 20% of machine cost are eligible. UIDs are required for all eligible machines; a visible Machine Identification Code (MIC) must be inscribed; the purchase date is the commercial invoice date.
- Eligibility for Assistance:
- Units must be registered and producing textiles as per the registered product line. Machinery must be verified during Joint Inspection Team (JIT) visits to claim benefits.
Documents required
- Company Registration & Eligibility: Certificate of Incorporation (Companies Act) or MSME/Udyam Registration; IEM (if applicable); Registration with State Textile Department (if required).
- Machinery Details: Purchase invoice(s) of benchmarked machinery (showing commercial invoice date); proof of payment; machinery bearing the MIC issued by the Textile Commissioner; manufacturer's authorization certificate (if via authorized agent/stockist); installation/commissioning report.
- Loan-Related Documents: Sanction letter of term loan from a notified lending agency; proof of disbursement; undertaking that machinery was purchased after loan sanction; term loan account statement.
- UID and i-TUFS Portal: Application form submitted through the i-TUFS portal (https://itufs.texmin.gov.in); all eligible machinery registered and allotted a UID.
- Joint Inspection Documents: Request for JIT visit after installation; complete machinery photographs (with MIC visible); JIT verification report.
- Declarations and Undertakings: Declaration that machinery is new and unused; declaration that no benefit is claimed under any other Central Government scheme for the same machinery; and any other prescribed declaration format (e.g., Annexure-A for prior term loans, Annexure-B for merged companies).
How to apply
- 1
A unit/applicant can apply for ATUFS after the machinery is installed, for undergoing a joint inspection.
- 2
Submit the ATUFS application online on the iTUFS online portal.
- 3
Once submitted, the application is forwarded to different stakeholders for verification.
- 4
A Unique Identification Number (UID) is generated and provided to the applicant.
- 5
Applicants can track the application online and opt to get SMS/e-Mail updates about the status through the UID.
- 6
After the stakeholders approve, the Ministry of Textiles will release the funds.
About the scheme
The Amended Technology Upgradation Fund Scheme (ATUFS), run by the Ministry of Textiles, is a credit-linked Capital Investment Subsidy (CIS) scheme. It supports investment in new benchmarked machinery across textile segments — boosting employment, productivity, quality, and import/export substitution.
Why it matters
- Capital Subsidy:
- Up to 15% CIS on benchmarked machinery.
- Modernisation:
- Upgrades loom and processing technology.
- Employment & Exports:
- Boosts jobs and export competitiveness.
- Wide Coverage:
- Weaving, processing, technical textiles, handloom, silk, jute.
Focus areas
- Weaving & Knitting:
- Weaving, preparatory, and knitting.
- Processing & Technical Textiles:
- Fibres, yarns, fabrics, garments, made-ups.
- Traditional Sectors:
- Handloom, silk, and jute sectors.
Is this scheme right for you?
ATUFS helps textile units modernise with new benchmarked machinery through a substantial capital subsidy — driving quality, exports, and jobs. If you are a registered textile unit investing in eligible machinery, this scheme can subsidise a significant share of your capital investment.
Official links
Links open the issuing department's website. Always confirm the current terms there before applying.
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.
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.
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