Amended TUFS – Technology Upgradation Fund Scheme

Amended TUFS – Technology Upgradation Fund Scheme is the flagship scheme of the Ministry of Textiles aimed at creating a modern and vibrant textile industry in India. TUFS Scheme was originally introduced in the year 1999 and has evolved over the years as Modified Technology Upgradation Fund Scheme (MTUFS), Restructured Technology Upgradation Fund Scheme (RTUFS), Revised Restructured Technology Upgradataion Fund Scheme (RRTUFS) and finally now as (ATUFS). In this article, we look at the Amended Technology Upgradation Fund Scheme (ATUFS),

Objective of Amended TUFS Scheme

The objective of the newly introduced Amended TUFS Scheme is:

• Employment generation and export by encouraging the apparel and garment industry, which will provide employment to women in particular and increase India’s share in global exports.
• Promotion of Technical Textiles, a sunrise sector, for export and employment.
• Promoting the conversion of existing looms to better technology looms for improvement in quality and productivity.
• Encouraging better quality in the processing industry and checking the need for import of fabrics by the garment sector.

The amended TUFS scheme is expected to give a boost to the “Make in India” scheme and attract investment to the tune of one lakh crore rupees and create over 30 lakh jobs.

Subsidy under Amended TUFS Scheme

Under the Amended TUFS scheme, there will be two broad categories:

1. Apparel, Garment and Technical Textiles, where 15% subsidy would be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years.
2. Remaining sub-sectors would be eligible for subsidy at a rate of 10%, subject to a ceiling of Rs.20 crore on similar lines

Eligibility  for capital investment  subsidy

Capital investment subsidy will be available  only to the entities for investment on technology upgradtion in the following segment  

1. Weaving , weaving preparatory and knitting
2. Processing of fibres , yarn . fabrics , garment and made ups
3. Technical textile
4. Garment / made up manufacturing
5. Handloom sector
6. Silk sector
7. Jute sector

Norms for subsidy

Every individual entity will be entitled for reimbursement of capital investment subsidy (CIS)

Segment	Rate of capital investment subsidy
Garmenting technical textiles	15%  subject  to an upper limits of RS 30 crores
Weaving for brand new shuttle less looms processing ,jute, silk and handloom	10% subject to an upper limit of RS 20 crore
Composite unit/ multiple segment if the eligible capital investment in respect of garmenting and technical textile category is more than 50% of the eligible project cost	15% subsidy to an upper limit of Rs 30 crores
Composite  unit/multiple segment –if the eligible capital investment in respect of garmenting and technical textile category  is less than 50% of the eligible project cost	10% subsidy to an upper limit of Rs 20crore