ATUF

Amended Technology Upgradation Fund

7.0/10

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.

Central Cash

States / UT: All India

Ministry / nodal: Ministry Of Textiles

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2016-01-13

Categories: Banking,Financial Services and Insurance, Skills & Employment

Sub-categories: Investment, Employment services and jobs

Target beneficiaries: Industries

Tags: Investment, Employment, Productivity, Import, Export

Details

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. It also indirectly promotes investments in the manufacturing of machinery for textiles. It is a credit-linked subsidy scheme for capital investment in textile manufacturing under the Government of India’s Make in India and Zero Defect and Zero Effect initiatives.

Objectives

  • Export and employment generation, especially to women, by encouraging the garment and apparel industry and increasing India’s share in global exports.
  • Promotion of technical textiles for export and employment.
  • Promotion of converting existing looms to better technology looms to improve quality and productivity.
  • Encourage better quality in the processing industry and check the need for the import of fabrics by the garment sector.

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 below: S. NoSegmentCIS RateCIS Cap per Entity1Garmenting, Technical Textiles15% on eligible machines₹30 crore2Weaving (Shuttle-less looms, preparatory, Jute, Silk, Handloom)10% on eligible machines₹20 crore3(a)Composite units (Garmenting + Technical Textiles) > 50% investment in those segments15% ₹30 crore3(b)Composite units with < 50% investment in Garmenting & Technical Textiles10% ₹20 crore

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 below:
S. NoSegmentCIS RateCIS Cap per Entity1Garmenting, Technical Textiles15% on eligible machines₹30 crore2Weaving (Shuttle-less looms, preparatory, Jute, Silk, Handloom)10% on eligible machines₹20 crore3(a)Composite units (Garmenting + Technical Textiles) > 50% investment in those segments15% ₹30 crore3(b)Composite units with < 50% investment in Garmenting & Technical Textiles10% ₹20 crore

Eligibility

Eligible Entities

  • Units must be registered under the Companies Act or as per MSME definitions.
  • Units must have an acknowledgment of IEM (Industrial Entrepreneur Memorandum) or be registered 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 their authorized agents is eligible.
  • A list of eligible machines is updated every year on April 1st by the Textile Commissioner.
  • Second-hand machinery is not permitted.
  • Accessories, attachments, and sample machines up to 20% of the machine cost are also eligible.
  • Machines may be eligible for multiple segments unless restricted.
  • Other essential machinery may be included later upon recommendation.
  • UIDs (Unique Identification Numbers) are required for all eligible machines.
  • Machinery must be purchased directly from authorized manufacturers or agents; certain cases of domestic purchases from authorized stockists may also qualify.
  • The purchase date is determined by the commercial invoice date.
  • Machine Identification Code (MIC) must be visibly inscribed on machines.

Eligibility for Assistance

  • Units must be registered and must be producing textiles as per the registered product line.
  • Machinery must be verified during Joint Inspection Team (JIT) visits to claim benefits.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

7.0
/ 10
Public Benefit Score
Accessibility 6.0/10 Moderate
Rural usefulness 5.0/10 Moderate
Application complexity 4.0/10 Moderate
Financial impact 9.5/10 Good
Literacy barrier 5.0/10 Moderate
Women inclusivity 8.0/10 Good
Awareness 7.5/10 Good
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility6.0
  • Financial impact9.5
  • Rural utility5.0
  • Awareness7.5
  • Simplicity6.0
  • Inclusivity8.0

What problem does this scheme solve?

The Amended Technology Upgradation Fund Scheme (ATUFS) aims to enhance investment and employment in the textile sector, particularly benefiting industries involved in textile manufacturing.

Key challenges addressed

  • Encourages investment in textile machinery
  • Promotes employment generation
  • Improves quality and productivity in textile manufacturing

Most beneficial for

  • Textile manufacturers
  • Women in the garment industry
  • Small and medium enterprises in textiles

Likely challenges

  • Complex application process
  • Need for specific machinery eligibility
  • Verification and inspection requirements

Practical insights for citizens

Practical for established textile units but challenging for new entrants

Rural challenges

  • Limited access to online application portals
  • Need for machinery installation before application

Digital challenges

  • High digital dependency may exclude non-digital users
  • Need for internet access to track application status

Implementation bottlenecks

  • Verification delays
  • Complex eligibility criteria for machinery

Awareness challenges

  • Limited outreach to small-scale textile producers
  • Need for more information dissemination

Application analysis

Application mode
Online portal
Documents burden
No documents required at initial stage
Verification complexity
Moderate due to joint inspection requirement
Office dependency
Moderate, requires interaction with stakeholders
DBT dependency
No direct benefit transfer dependency
CSC support
Limited, primarily online
Estimated citizen effort
High due to multiple steps in application

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach High
  • Occupation reach Textile industry workers

Benefit analysis

Benefit type
Cash
Benefit frequency
One-time subsidy upon approval
Benefit practicality
High for eligible machinery purchases
Financial meaningfulness
Moderate, as it depends on the scale of investment
Long-term impact
Positive impact on employment and productivity in the textile sector

Plain-language guidance

ATUFS provides financial support for investing in new textile machinery to improve production and create jobs. It is aimed at textile manufacturers, especially those employing women.

Who should apply
Textile manufacturers and MSMEs looking to upgrade machinery.
Who may struggle
Small units without access to digital resources or those unfamiliar with online applications.
Best application route
Apply via the iTUFS online portal after installing eligible machinery.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

Step 1: A unit/applicant can apply for ATUFS after the machinery is installed for undergoing a joint inspection.
Step 2: The applicant can submit the ATUFS application online on the iTUFS online portal.
Step 3: Once the application is submitted, it will be forwarded to different stakeholders for verification.
Step 4: A Unique Identification Number (UID) is generated and provided to the applicants.
Step 5: Applicants can track the application online and can opt to get SMS/e-Mail updates about the application status through the UID.
Step 6: After the stakeholders approve, the Ministry of Textiles will release the funds.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

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- **15% (up to ₹30 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.

References

Guidelines
https://www.texmin.gov.in/static/uploads/2025/06/b0a2771b640f5c2b036de284db0a3e57.pdf
Website
https://www.texmin.gov.in/offerings/schemes-and-services/details/technology-upgradation-fund-scheme-kDO1MTMtQWa

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Frequently asked questions

What is the purpose of Amended Technology Upgradation Fund?
Amended Technology Upgradation Fund is a government welfare initiative designed to support Infra, Industries through benefits related to Banking,Financial Services and Insurance, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Amended Technology Upgradation Fund?
Eligibility for Amended Technology Upgradation Fund may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Amended Technology Upgradation Fund?
Benefits under Amended Technology Upgradation Fund may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Amended Technology Upgradation Fund?
Amended Technology Upgradation Fund is managed by Ministry Of Textiles and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Amended Technology Upgradation Fund?
Yes, eligible applicants may be able to apply online for Amended Technology Upgradation Fund through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Amended Technology Upgradation Fund?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Amended Technology Upgradation Fund?
Applications for Amended Technology Upgradation Fund may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Amended Technology Upgradation Fund?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Amended Technology Upgradation Fund a central government scheme?
Yes, Amended Technology Upgradation Fund is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Does Amended Technology Upgradation Fund provide healthcare or insurance support?
Amended Technology Upgradation Fund may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Amended Technology Upgradation Fund at government hospitals?
Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Can CSC centres help users apply for Amended Technology Upgradation Fund?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Amended Technology Upgradation Fund?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Amended Technology Upgradation Fund?
Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Amended Technology Upgradation Fund?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Amended Technology Upgradation Fund in All India?
Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Amended Technology Upgradation Fund applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.