ATUFS
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 of ATUFS
- 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 of ATUFS
The eligible individual entities (not units) are entitled to get reimbursement of the Capital Investment Subsidy (CIS) according to the below rates:
Segment | Rate of CIS |
Weaving using new looms that are shuttle-less processing silk, handloom and jute (includes weaving and knitting preparatory) | 10% subject to the upper limit of Rs.20 crore |
Technical textiles and garments | 15% subject to the upper limit of Rs.30 crore |
Multiple composite units/segments where the capital investment for technical textiles and garments is less than 50% of the project cost | 10% subject to the upper limit of Rs.20 crore |
Multiple composite units/segments where the capital investment for technical textiles and garments exceeds 50% of the project cost | 15% subject to the upper limit of Rs.30 crore |
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ATUFS Registration Process
- A unit/applicant can apply for ATUFS after the machinery is installed for undergoing a joint inspection.
- The applicant can submit the ATUFS application online on the iTUFS online portal.
- Once the application is submitted, it will be forwarded to different stakeholders for verification.
- A Unique Identification Number (UID) is generated and provided to the applicants.
- Applicants can track the application online and can opt to get SMS/email updates about the application status through the UID.
- After the stakeholders approve, the Ministry of Textiles will release the funds.
The ATUFS promotes textile sector exports by providing them with incentives and subsidies for producing garments and technical textiles. It also provides subsidies for investments in manufacturing machinery for textile production.