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Amended Technology Upgradation Fund Scheme (ATUFS)

Ministry of Textiles

With Aim of 'Make in India' and 'Zero Defect and Zero Effect' in manufacturing, the government provides credit linked capital investment subsidy. This scheme would facilitate augmenting of investment, productivity, quality, employment, exports and import subsitution in textile industry. It will also indirectly promote investment in textile machinery manufacturing.

Scheme Benefits & Highlights
  • Every eligible individual entity (not the unit) will be entitiled for reimbursement of Capital Investment Subsidy (CIS) under this scheme, as per the following rates:
S. No. Segment Rate of Capital Investment Subsidy (CIS)
1 Garmenting, Technical Textiles 15% subject to an upper limit of Rs. 30 crores
2 Weaving for brand new Shuttle less Looms (including weaving prepatory and knitting), processing jute, silk and Handloom   10% subject to upper limit of Rs 20 crore
3 Composite units/Multiple segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. 15% subject to an upper limit of Rs 30 
4 Composite Unit/ Multiple segments - IF the eligible capital investment in respect of Garmenting and technical textiles category is less than 50% of the project cost. 

10% subject to an upper limit of 20 crores.


Second hand machineries will not be eligible and for more details about the type of machineries eligible under this scheme, please visit:


Only those entitites that fall under the following sectors are eligible to apply:

  • Weaving, Weaving Preparatory and Knitting
  • Processing of fibres, yarns, fabrics, garments and made up
  • Handloom Sector
  • Silk Sector
  • Jute Sector
  • Garmet/Made up manufacturing
  • Texhnical textiles
Registration Process

After installation of machinery the applicant will have to make an online application for joint inspection.

The documents required and process can be found out at:

Prem Kumar Kataria (Additional Secretary)

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