Amended Technology Upgradation Fund (ATUF) for Textiles
Overview
The Amended Technology Upgradation Fund (ATUF) is a Government of India scheme under the Ministry of Textiles. It provides capital subsidy and interest reimbursement to textile and jute manufacturers for upgrading their technology, purchasing new machinery, and modernizing production processes.
Objective
ATUF aims to enhance the competitiveness of India’s textile sector by incentivizing the adoption of modern, energy-efficient technology. It reduces the cost of credit for manufacturers who invest in machinery upgradation and capacity expansion.
Benefits
- Capital subsidy of 15% to 25% depending on the segment
- Higher subsidy rates for garments, technical textiles, and handloom sectors
- Interest reimbursement on term loans for approved machinery
- Covers spinning, weaving, knitting, processing, garmenting, and more
- Supports both new units and expansion of existing units
Eligibility
- Textile manufacturing units across the value chain
- Units must have a term loan sanctioned by a scheduled bank for machinery
- Investment must be in specified technology-upgraded machinery
- Small units in handloom and powerloom sectors get enhanced benefits
Exclusions
- Units that have claimed benefits for the same investment under a prior Technology Upgradation Fund scheme
- Second-hand or refurbished machinery purchases are generally excluded
- Projects that are not financed through institutional term loans
Application Process
- Apply through the designated nodal bank that disbursed the term loan
- Submit proof of machinery purchase, installation, and loan disbursement
- Nodal bank forwards the claim to the Ministry of Textiles
- Ministry verifies the claim and releases the subsidy or interest reimbursement
- Multiple claims can be submitted for ongoing loan tranches
Documents Required
- Term loan sanction letter from the bank
- Machine purchase invoices and installation certificates
- Udyam or factory registration certificate
- GST registration
- Bank account details
- Project report approved by the bank
