The Amended Technology Upgradation Fund Scheme, which falls under the ambit of the Ministry of Textiles, aims to promote investment, employment, productivity, quality, import as well as export substitution in the textile industry. At the same time this scheme looks to indirectly promote investment in the manufacturing industry.
Highlights
ATUFS is a credit-linked subsidy program for capital investment in the textile and manufacturing sectors within the framework of Make in India and the Government of India’s Zero Defect and Zero Effect Initiative.
Objective of ATUFS
Creating employment and exports, especially by providing employment to women and promoting India’s share of global exports in the garment and garment industry. Promote exports and employment of technical textiles, a future sector. Facilitates the conversion of existing looms to better looms to improve productivity as well as quality. Promote better quality in the manufacturing industry and consider the need for fabrics imported by the apparel sector.
Categories of ATUFS
There are two broad ATUFS categories which are offered are
- The garment, apparel and technical textile sectors are offered on an investment basis with a 15% subsidy. However, entrepreneurs have a limit of 30 crore over 5 years.
- The remaining branches of the textile industry are subsidized at a rate of 10 percent. However, the upper limit of 20 crore applies
Eligibility area
The entities which are eligible for ATUFS are Handloom sector, Silk sector, Jute sector, Technical textiles, Made-up as well as garment manufacturing, fibres, garments, Processing fabrics, made-up, and yarns and weaving preparatory, knitting and weaving sector.
