Amended Technology Upgradation Fund Scheme

  • The Cabinet Committee on Economic Affairs (CCEA) has approved introduction of Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry <Who chairs CCEA? Who are its members? What are its functions? Answer in comments>
  • The ATUFS replaces existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) to give a boost to textile sector under Make in India campaign


ATUFS targets:

  • Employment generation (including women) and global export by encouraging garment and apparel industry <very labour intensive sector>
  • Promote Technical Textiles which is a sunrise sector for export and employment creation <can you tell us about technical textiles in comments>
  • Improvement in quality and productivity by promoting conversion of existing looms to better technology looms
  • Encourage better quality in textile processing industry and keep check on import of fabrics by the garment sector

Two broad categories of ATUFS:

  1. Apparel, Garment and Technical Textiles sectors would be provided on capital investment with fifteen per cent subsidy. However, it will be subject to a ceiling of Rs. 30 crore for entrepreneurs over a period of five years
  2. Remaining sub-sectors of textile sectors would be provided subsidy at a rate of 10 percent. However, it would be subject to a ceiling of Rs.20 crore


  • 12,671 crore is for committed liabilities under the ongoing RR-TUFS scheme and Rs. 5,151 crore is for new cases under ATUFS
  • The amended scheme would give a boost to ‘Make in India’ in the textiles sector
  • It is expected to attract investment to the tune of one lakh crore rupees, and create over 30 lakh jobs
  • All cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect
  • Office of Textile Commissioner (TXC) is being reorganised & its offices shall be set up in each state
  • Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies

About TUFS:

  • TUFS was introduced by the Union Government in 1999
  • Aim was to facilitate new technology for making the Indian textile industry globally competitive and to reduce the capital cost for the textile industry
  • The scheme was earlier amended for continuation during the 12th Five Year Plan into Revised Restructured Technology Upgradation Fund Scheme
Published with inputs from Swapnil

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