ATUFS — Amended Technology Upgradation Fund Scheme
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Quick Answer
10%–25% capital investment subsidy on benchmarked textile machinery under ATUFS
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Ministry of Textiles
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
Capital Investment Subsidy (CIS) on eligible benchmarked textile machinery across six segments: garmenting (15%), technical textiles (15%), weaving (15%), processing (10%), yarn (10%), handloom (25%), powerloom (15%). Machinery must be purchased from registered manufacturers and benchmarked under the scheme.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Textiles is the central government ministry responsible for policy formulation and promotion of the textiles and apparel sector in India. Through the National Technical Textiles Mission (NTTM), launched in 2020 with an outlay of INR 1,480 crore, the ministry aims…
Learn moreBenefits & Funding
What You Get
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.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register your unit on the iTUFS
Register your unit on the iTUFS portal (ituf.texmin.nic.in).
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
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.
