Amended Technology Upgradation Fund

Amended Technology Upgradation Fund is a credit-linked capital investment subsidy scheme run by the Ministry of Textiles for Indian textile manufacturers. It helps units buy modern benchmarked machinery, which raises production, creates jobs and cuts dependence on imported fabric and machines.

As per the July 2026 review by the Union Textiles Minister, the scheme has supported 10,061 units with subsidy of about ₹2,776 crore, pulling in investment of over ₹53,121 crore. Around 6.7 lakh benchmarked textile machines have been installed and close to 3.6 lakh direct jobs created through the scheme.

Amended Technology Upgradation Fund - Introduction

Amended Technology Upgradation Fund (ATUFS) is a key scheme of the Ministry of Textiles to modernise the Indian textile sector. It works as a credit-linked subsidy scheme for capital investment and supports the Make in India and Zero Defect and Zero Effect goals of the government.

This scheme helps a unit modernise its manufacturing by offering a subsidy on new machinery. It supports investment, improves productivity and creates good employment across the textile ecosystem, with a strong focus on women in garment and apparel units.

The review also showed a strong multiplier effect. Every ₹1 crore of subsidy has helped mobilise nearly ₹19 crore of private investment and create around 130 direct jobs. The weaving sector took about 46% of the total subsidy, while composite units generated close to 1.7 lakh new jobs.

Objectives

The scheme is built around a few clear goals for the textile industry:

• Raise export competitiveness and generate new jobs, especially for women, by strengthening the garment and apparel sectors.
• Encourage the production and use of technical textiles across the country.
• Upgrade existing looms to modern technology so output quality improves.
• Improve processing standards to raise domestic fabric quality and lower the need for imports.

Benefits

Amended Technology Upgradation Fund offers a capital investment subsidy on benchmarked machinery across sectors such as weaving, knitting, garment manufacturing, technical textiles, silk, jute and handlooms.

Capital Investment Subsidy (CIS) rates and caps are given below:

Eligibility

A unit must be registered under the Companies Act or meet MSME definitions to apply. It should hold a valid acknowledgment for an IEM (Industrial Entrepreneur Memorandum) or be registered with its State Directorate.

Both existing and new units can get these benefits. If a unit has already received support under earlier versions like RRTUFS, it can claim only the remaining balance within the ATUFS limits.

Only new, benchmarked machinery bought from notified manufacturers is allowed. The Textile Commissioner updates the list of eligible machines every year on April 1st. Second-hand machinery is not permitted. All machines must be registered to get a Unique Identification Number (UID), and the Machine Identification Code (MIC) must be clearly inscribed on the equipment.

Application Process

Online Application Process

STEP 1 - Complete the installation of the machinery before applying for the subsidy.

STEP 2 - Submit the application through the official iTUFS online portal.

STEP 3 - Once the application reaches the portal, it goes through verification by different stakeholders.

STEP 4 - The system generates a Unique Identification Number (UID) for the machine, which is used for tracking.

STEP 5 - Track the application status online or through SMS and email updates.

STEP 6 - After successful verification of records and completion of the Joint Inspection, the Ministry of Textiles releases the subsidy amount.

Documents

These documents are needed for a smooth online application:

1. Entity Registration: Certificate of Incorporation or Udyam Certificate (MSME), and the IEM if applicable.
2. Machinery Records: Purchase invoices showing the commercial date, payment proof such as bank statements, and the manufacturer's authorization certificate.
3. Installation Proof: A certificate confirming the machinery is installed and commissioned.
4. Financial Papers: Term loan sanction letter from the lender, proof of loan disbursement, and the current loan account statement.
5. Inspection Support: Clear photographs of the installed machinery showing the MIC.
6. Declarations: Signed undertakings stating the machinery is brand new and that no duplicate benefits are being claimed from other central schemes.

References

View ATUFS Resolution

View ATUFS Guidelines

FAQ's

What is the Amended Technology Upgradation Fund?

Amended Technology Upgradation Fund is a credit-linked capital investment subsidy scheme that helps the textile industry upgrade machinery, improve product quality and raise global export competitiveness.

Who is eligible to apply for this scheme?

Eligible applicants include industrial units in the garment, technical textile, handloom, silk, jute and fabric processing sectors. The scheme supports the business entity rather than individual workers.

What subsidy amount can a unit expect?

Depending on the segment, a unit can get a 10% to 15% subsidy. Technical textiles and garmenting sectors are eligible for 15% capped at ₹30 crore, while weaving and other segments may get 10% capped at ₹20 crore.

How does the inspection process work?

After the machinery is installed, a Joint Inspection Team (JIT) verifies the setup at the facility to make sure all machines meet the eligibility criteria before the final subsidy is released.

Can a unit apply before buying the machinery?

No, the application should be made only after the machinery is installed and operational, because the Joint Inspection must confirm the machinery is already in use.

Where can a unit check the status of the application?

The application can be tracked on the iTUFS portal using the registration credentials and the UID generated during enrollment.