Technology Upgradation Fund Scheme

Technology Upgradation Fund Scheme

Scheme Overview

Sponsoring Authority      :    Ministry of Textiles

Effective Date                  :     09.02.2016 (13.01.2016 to 31.03.2022)

Objectives :

1. To promote ease of doing business and achieve the vision of generating employment & promoting exports through "Make in India" with "Zero effect and zero defect" in manufacturing.
2. Facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in textile industry. It will also indirectly promote investment in textile machinery (having benchmarked technology) manufacturing.

Definitions under the scheme :

Technical Textile :

Textile materials and products used primarily for their technical performance & functional properties rather than their aesthetic or decorative characteristics, where function is the primary criterion. Technical textile include textiles for automotive applications, Medical textiles, Geotextiles, Agrotextiles, Protective clothing, Pack Tech, etc.

Capital Investment Subsidy (CIS) :

The subsidy at the prescribed rate for the segment on investment made in "Fixed Capital Investment" for purchases of the benchmarked new machinery for each segment under this scheme, which will be determined on the basis of the benchmarked machinery after its installation by the entity.

Activities covered under ATUFS for “Benchmarked machinery” :

1. Weaving, Weaving Preparatory and Knitting
2. Processing of fibers, yarns, fabrics, garments & made-ups
3. Technical Textile
4. Garment / made-up manufacturing
5. Handloom Sector
6. Silk Sector
7. Jute Sector

Eligible Subsidy : (Norms)

1. For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups:
1. 15% on Eligible Machinery
2. up to Rs. 30 Crore
2. For Weaving for brand new Shuttle-less Looms (including weaving preparatory & knitting), Processing, Jute, Silk and Handloom:
1. 10% on Eligible Machinery
2. Max.up to Rs. 20 Crore
3. For Composite unit / Multiple Segments:
• If the eligible capital investment of Garmenting & Technical Textile category is
1. More than 50% of the eligible project cost
1. 15% on Eligible Machinery
2. up to Rs. 30 Crore
2. less than 50% of the eligible project cost
1. 10% on Eligible Machinery
2. Max.up to Rs. 20 Crore

When to apply :   Within 6 Months of Sanction of TL (for obtaining UID) using i-ATUFS

Project Completion Criteria (Installation/ commissioning of Machinery) :   Within one year from date of sanction of TL