Business

Centre Injects Fresh Life Into Textile Sector In The Form Of ATUF Scheme

To achieve the vision of the Government for generation of employment and promotion of exports through “Makein India” and of Zero effect and Zero defect manufacturing, Central Government has introduced a new scheme “AmendedTechnology Upgradation Fund Scheme (ATUFS)”which provide one time capital subsidy for eligible investments in plant & machinery.

The Scheme is credit linked and the project is covered by term loans sanctioned by the lending agencies which will only be eligible under the scheme.

Sector eligible under the scheme

Garment / Apparel / Made ups (wearable or non - wearable of stitched fabrics).
Technical Textile ( i.e Mobitech, Meditech, Geotextiles, Agrotextiles, Protect, Pack Tech, Buildtech and Hometech )

Duration of the scheme

This scheme is effective from 13.01.2016 to 31.03.2022.

Cut-off date:The date of Term Loans shall be the date of the letter of the lending agency vides which the sanction ofterm loan is communicated to the entrepreneur.

Different Segments covered under Textile Sector are as follows:

ATUFS benefits are available for ATUFS benchmarked machinery covering the following segments:-
Weaving, weaving Preparatory and knitting
Processing of fibres, yarns, fabrics, garments and made –ups
Technical Textiles
Garment / Made up manufacturing
Handlooms
Silk
Jute

Subsidy for garment and technical textiles is 15%; subsidy for weaving for brand new shuttleless looms, processing, jute, silk aned handloom is 10%; Subsidy for composite unit/multiple segments is 15% in event capital for garmenting and technical textiles is more than 50%; and 10% subsidy if capital is less than 50% for the same criteria.