Amended Technology Upgradation Fund Scheme (ATUFS)
The Amended Technology Upgradation Fund Scheme (ATUFS) is an initiative by the Ministry of Textiles to modernize the Indian textile industry. It provides capital investment subsidies to encourage textile manufacturers to upgrade their machinery and technology, boosting competitiveness and growth.
What is the ATUFS?
ATUFS is a credit-linked capital investment subsidy scheme designed to incentivize textile entrepreneurs to invest in new machinery and technology. It aims to improve productivity, quality, and export competitiveness within the textile sector.
Key Objectives of the ATUFS
· Modernization: Facilitate the modernization of the textile industry by encouraging the adoption of advanced technologies.
· Investment: Stimulate capital investment in new machinery and equipment.
· Employment: Generate employment, particularly for women, by supporting the growth of the garment and apparel sector.
· Exports: Boost textile exports and increase India's share in the global textile market.
· Quality Improvement: Enhance the quality of textile products and reduce reliance on imports.
Eligibility Criteria for the ATUFS
The following sectors within the textile industry are eligible for the ATUFS subsidy:
· Handloom sector
· Silk sector
· Jute sector
· Technical textiles
· Made-up/garment manufacturing
· Processing fibers, fabrics, made-ups, garments, and yarns
· Weaving preparatory and knitting
Benefits of the ATUFS
The ATUFS offers a Capital Investment Subsidy (CIS) at the following rates:
· 15% for Garmenting and Technical Textiles (maximum subsidy of Rs. 30 crore)
· 10% for Weaving (shuttle-less looms, including preparatory and knitting), Processing, Jute, Silk, and Handloom (maximum subsidy of Rs. 20 crore)
How to Apply for the ATUFS?
1. Online Application: Apply online through the iTUFS portal: http://www.itufstxcindia.gov.in/Login.aspx?ReturnUrl=%2ftufs
2. Term Loan: Apply for a term loan from a notified lending agency under the ATUFS. The loan must be at least 50% of the eligible machinery cost and have a minimum tenure of three years (including moratorium) for MSME units.
3. Application Tracking: Track the application progress online through the iTUFS portal.
Documents Required for Application
· Proof of Registration: Registered Partnership Deed, GSTIN Number.
· Proof of Business: Udyam Registration, GST Registration, Income Tax Returns, Performance Certificate, Enterprise Existence Proof, PAN Card.
· Financial Documents: Audited Financial Statement, Provisional Financial Statement, Bank Account Statement.
· Proof of Payment: Price quotations from vendors.
· Proof of Identity and Residence: Aadhar Card (of proprietor).
FAQs About the ATUFS
1. Who is eligible for ATUFS?
Various segments of the textile industry, including handloom, silk, jute, technical textiles, garment manufacturing, and processing units.
2. What is the subsidy rate?
15% for garments and technical textiles, and 10% for other specified segments.
3. How do I apply?
Through the online iTUFS portal.
4. What is the maximum subsidy amount?
Rs. 30 crore for garments and technical textiles, and Rs. 20 crore for other segments.
Why Should You Apply for the ATUFS?
The ATUFS provides a substantial financial incentive for textile businesses to upgrade their technology and machinery. This modernization can lead to increased productivity, improved quality, enhanced competitiveness, and greater export potential.
Conclusion
The Amended Technology Upgradation Fund Scheme plays a crucial role in the development and modernization of the Indian textile industry. By providing financial support for technology upgrades, the scheme empowers textile manufacturers to compete effectively in the global market, create employment opportunities, and contribute to the growth of the economy.