Technology Upgradation Fund Scheme for Textile industry

The Ministry of Textile launched the Technology Upgradation Fund Scheme to help the textile entrepreneurs in India. And now there is an ‘Amended Technology Upgradation Fund Scheme (ATUFS)’ with effect from 13.01.2016, for a period of seven years. Basically, the scheme has a provision of one-time capital subsidy for eligible benchmarked machinery at the rate of 15%. The subsidy is for garments and technical textiles segments with a cap of Rs. 30 crores. In addition, one can avail the subsidy at the rate of 10% for weaving, processing, jute, silk and handloom segments with a cap of Rs. 20 crores.

Revised Technology Upgradation Fund Scheme Features

National Horticulture Board (NHB) was set up by the Government of India in 1984. Basically, it is an autonomous society under the Societies Registration Act 1860. The objectives of National Horticulture Board are the development of hi-tech commercial horticulture, development of modern post-harvest management infrastructure, promotion, market development of fresh horticulture produce and more. They also carry out studies and surveys to identify constraints. Additionally, they develop short and long term strategies for systematic development of horticulture. Also, the agency provides technical services including advisory and consultancy services. National Horticulture Board in India provides several subsidies for different horticulture initiative.

Technology Upgradation Fund Scheme Scope

  1. Cotton ginning and pressing.

  2. Cotton ginning and pressing.

  3. Textile industry which includes: –

    • Silk reeling and twisting.

    • Wool scouring, combing, and carpet industry.

    • Synthetic filament yarn texturizing, crimping and twisting.

    • Spinning.

    • Viscose Staple Fibre (VSF) and Viscose Filament Yarn (VFY).

    • Weaving, knitting and fabric embroidery

    • Technical textiles including non-wovens.

    • Garment/design studio / made-up manufacturing .

    • Processing of fibers, yarns, fabrics, garments, and made-ups.

    • Jute industry.

Technology Upgradation Fund Scheme Eligibility Criteria Eligible Machinery for Technology Upgradation Fund Scheme

Cotton Ginning and Pressing
Spinning/Silk Reeling & Twisting/Synthetic filament yarn Texturising, Crimping & Twisting
Wool scouring, combing, and carpet industry
Manufacturing of viscose filament yarn and viscose staple fiber
Weaving / Knitting
Technical Textiles and non-wovens
Garment / Made-up manufacturing
Processing of Fibre/Yarn/Fabrics/Garments / made-ups
Jute industry
Machinery eligible under 10% capital subsidy for technical textiles including non-wovens
Machinery eligible under 10% capital subsidy for garment sector
Process control equipment for various sectors
Machinery eligible under 20% margin money subsidy (MMS-TUFS) for power loom sector
Machinery eligible under 10% capital subsidy for processing sector
Brand new shuttleless looms eligible under 10% capital subsidy for weaving sector
Machinery eligible for CAD, CAM and design studio

Eligible Units for Technology Upgradation Fund Scheme

Existing unit with or without expansion and new units.
Existing units can modernize and/or expand with the appropriate eligible technology.
New units must set up their entire facilities only with the appropriate eligible technology.
A unit can undertake one or more activities listed at I-SCOPE OF THE SCHEME hereinbefore under the Scheme.
Textile / Jute units with 100% foreign equity.

Textile Machinery Eligible for Technology Upgradation Fund Scheme

Under the TUF Scheme, generally, you can avail subsidy only for new machinery. However, the following imported second-hand machines are also eligible under Restructured TUFS:
Air jet, Projectile, Rapier and Waterjet shuttleless looms fitted with or without electronic jacquard / electronic dobby and with or without high speed direct beam warper with creel and/or sectional warping machine with auto stop and tension control of up to 10 years’ vintage and with a residual life of minimum 10 years and with the value cap of Rs. 8.00 lakh per machine. You have to furnish a certificate from a Chartered Engineer of the exporting country certifying the vintage and residual life of the imported second-hand machinery to the lending agency at the appropriate time as determined by the lending agency. Such a certificate is compulsory for any import of eligible second-hand machinery under this scheme irrespective of the value of such import.
Balancing equipment or equipment required for de-bottlenecking the production process will also be eligible for funding under Restructured TUFS. Waste reduction equipment or devices will be eligible for funding under the Restructured TUFS. The size of the technologically upgraded facilities of an existing unit or size of the new unit must be of a minimum economic size (MES). MES for eligible segments of the industry should be any unit which is financially viable as per viability analysis of the financial institutions or banks. MES for stand-alone new spinning units will be 8000 spindles.
All sample machines for all eligible machinery under Restructured TUFS for 5% / 4% interest reimbursement will be eligible.
Accessories / Attachments/spares received along with the machinery up to the value of 20% of the machinery cost or actual value whichever is lower is eligible.
Machinery eligible for one segment is eligible for other segments/activity also unless its eligibility is specifically restricted for a particular segment.
Eligibility of any other textile machinery equal to or higher than the benchmarked technology not listed in the annexures or developed in the course of the operation of Restructured TUFS will be, suomoto or on reference, specifically determined by the Technical Advisory-cum-Monitoring Committee (TAMC) constituted by the Government.

Other Investments Eligible for Technology Upgradation Fund Scheme

factory building including renovation of factory building;
Preliminary and pre-operative expenses;
Margin money required for working capital, specifically required for the technology up gradations.
In case Apparel/handloom unit is engaged in other activity, the eligible investment under this head will only be related to plant & machinery eligible for manufacturing of apparel/handlooms.
Investment in the acquisition of technical know-how including expenses on training and payment of fees to the foreign technicians.

How To Apply for Technology Upgradation Fund Scheme (TUFS)

You can apply for the funding assistance online. First of all, log on @ Here, you will get a registration form. You have to Username, Password and Verification code. And after clicking the enter button, you can access Integrated Technology Up-gradation Fund Scheme, Ministry of Textiles. A beneficiary user needs to register first to access the application. Select the ‘Beneficiary Registration’ from ‘Login screen’. Here, you have tp fill the form with necessary information. After saving the data, you can track your application status frequently in future. The form is a bit complicated. However, you can check the User Manuals for filling the application form of Technology Upgradation Fund Scheme correctly.

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