All schemes
Subsidy Textiles

ATUFS — Technology Upgradation for Textiles

Up to 15% capital subsidy for textile machinery modernisation

Maximum benefit
₹30 L
Typical processing
90-180 days from machinery installation to subsidy disbursement
Apply on official portal

About this scheme

Amended Technology Upgradation Fund Scheme provides capital subsidy on benchmarked textile machinery — spinning, weaving, processing, garmenting, technical textiles. 10-15% subsidy based on segment. Replaces the old TUFS.

What you get

  • 10% subsidy on benchmarked spinning machinery
  • 15% subsidy on weaving, knitting, processing, technical textiles, garmenting
  • Subsidy capped at Rs. 30 lakh per unit (general) / Rs. 50 lakh (MSME segment)
  • Subsidy is credit-linked — bank term loan required
  • Repayment over 7 years with moratorium
  • Stacks with state textile incentives

Who qualifies

MSMEs and large units in the textile value chain — spinning, weaving, knitting, processing, technical textiles, garmenting, machine carpets, embroidery. Must be a new unit or an existing unit undertaking expansion with benchmarked machinery from the approved list.

Industries (NIC divisions)
TextilesApparel
Business types
ProprietorshipsPartnershipsPrivate LimitedLLPsOne Person Companies

Available across India (central scheme).

How to apply

  1. 1Apply via i-TUFS portal (itufs.nic.in)
  2. 2Bank submits scheme application after sanctioning term loan
  3. 3iTUFS issues Unique Identification Number (UID)
  4. 4Joint Inspection Team verifies machinery installation
  5. 5Subsidy released to bank account in 4 tranches

Key terms and conditions

  • Subsidy is back-end credit (reduces loan principal)
  • 5-year operational lock-in
  • Machinery must be from the approved benchmarked list
  • Imported machinery permitted if benchmarked

What disqualifies you

  • Second-hand machinery not eligible
  • Non-benchmarked machinery rejected
  • Trading/retail textile units excluded

Documents typically required

  • Udyam registration
  • GST registration
  • Project report
  • Bank loan sanction
  • Machinery invoice

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.