A credit-linked subsidy introduced by Ministry of Textiles for Small Scale Industries which aims to promote micro and small enterprises in the textile and manufacturing sectors, Amended Technology Upgradation Scheme Fund is part of a project launched by the Ministry of Textiles.
Why did Government introduce this scheme?
To promote ‘Make in India’ and ‘Zero Defect and Zero Effect campaigns. Through ATUFS, the textile industry shall be able to maximize employment, productivity,
investment, exports and replace imports.
BENEFITS OF THIS SCHEME:
1.Achieving employment and export growth by encouraging the apparel and garment industry, which will increase the share of India’s exports to the world.
2.Export and employment promotion of technical textiles, a sunrise industry
3.For improving quality and productivity, conversion of existing looms to better-technology looms is promoted
4.In order to improve quality in the processing industry and to reduce the requirement to import fabrics by the garment industry, efforts need to be made.
What is the eligibility criteria to avail ATUFS?
1.Silk sector
2.Handloom sector
3.Technical textiles
4.Jute sector
5.Madeup /garment manufacturing
6.Processing fabrics, fibres, garments, madeup , and yarns
7.Weaving preparatory, weaving, and knitting
What will be the rate at which eligible entities can apply for reimbursement of Capital Investment Subsidy?
| S.No | Segment | Rate of Capital Investment Subsidy (CIS) |
| 1. | Garmenting, Technical Textiles | 15% subject to an upper limit of Rs. 30 crores |
| 2. | Weaving for brand new Shuttle less Looms (including weaving prepatory and knitting), processing jute, silk and Handloom | 10% subject to upper limit of Rs 20 crore |
| 3. | Composite units/Multiple segments – If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. | 15% subject to an upper limit of Rs 30 |
| 4. | Composite Unit/ Multiple segments – IF the eligible capital investment in respect of Garmenting and technical textiles category is less than 50% of the project cost. | 10% subject to an upper limit of 20 crores. |
NOTE:
•If the eligible capital investment in respect of Garmenting and technical
textiles category is less than 50% of the project cost.
•** If the eligible capital investment in respect of Garmenting and
Technical Textiles category is more than 50% of the eligible project cost
•This scheme does not cover second hand machinery.
•It has been decided that an individual entity cannot receive more than
Rs. 30 crore of subsidy as a result of the scheme.
What is the process to apply for ATUFS?
Author
Sanjana C
I am an expertise in Chartered Accountant with a focus on taxation. Also mastered the intricacies of global tax laws and enjoys studying foreign languages in spare time.
