Who can apply for ATUFS?

Any textile manufacturing unit in eligible segments — spinning, weaving, knitting, processing, garmenting, technical textiles, handloom or powerloom — that is purchasing eligible benchmarked machinery from registered manufacturers can apply.

What is the subsidy rate under ATUFS?

The Capital Investment Subsidy (CIS) varies by segment: 25% for handloom, 15% for garmenting, technical textiles, weaving and powerloom, and 10% for spinning/yarn and processing segments.

Is the subsidy a one-time benefit?

Yes. CIS is a one-time grant on the cost of eligible benchmarked machinery. It is not repayable and no equity is taken.

What machinery qualifies?

Only machinery that is benchmarked under the ATUFS scheme and purchased from manufacturers registered with the Ministry of Textiles qualifies. A list of approved machinery and manufacturers is maintained by the Textile Commissioner.

How do I claim the subsidy?

Apply through the ATUFS online portal managed by the Textile Commissioner's office. Submit the machinery purchase invoice, bank loan sanction letter (if applicable), and unit registration documents. The subsidy is credited directly to your bank account after verification.

Is there an application deadline?

ATUFS is a rolling scheme — applications are accepted year-round subject to budget availability. It is advisable to apply promptly after machinery installation to avoid fund exhaustion.

ATUFS — Amended Technology Upgradation Fund Scheme (2026)

Capital Investment Subsidy (CIS) is disbursed as a direct grant — no repayment, no equity dilution. Subsidy rates range from 10% (yarn/processing) to 25% (handloom) of the eligible benchmarked machinery cost. Funds offset the upfront capital expenditure on approved textile equipment, materially reducing the payback period. Units can also leverage bank term loans for the balance, and CIS makes the overall project more bankable.

ATUFS — Amended Technology Upgradation Fund Scheme

ATUFS — Amended Technology Upgradation Fund Scheme

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