Punjab ATUF Interest Subsidy for Textiles
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Textile MSMEs in Punjab get a 5% interest subsidy for 5 years on top of ATUF benefits, up to ₹10 lakh a year.
- Funding amount
- Up to ₹10L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Punjab
- Registrations needed
- Udyam registration
About this subsidy
Clause 12.9 of Punjab's Industrial and Business Development Policy 2022 adds a state interest subsidy on top of the Centre's Amended Technology Upgradation Fund (ATUF) scheme. MSMEs setting up new capacity, expanding or diversifying in apparel and made-ups and technical textiles get 5% interest subsidy for 5 years from the date of commercial production, subject to a maximum of ₹10 lakh per year. It stacks with ATUF rather than replacing it, so a unit financing modern looms or processing machinery can bring its effective cost of debt down substantially in the years when the new line is still filling its order book.
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 Department of Industries & Commerce is the Government of Punjab's department that runs the Punjab Start-up Cell. The Cell is headed by the Director of Industries and Commerce and acts as a single point of contact for the state's startup policy. The department is based at…
Learn moreBenefits & Funding
- Amount
- Up to ₹10L
What You Get
A 5% interest subsidy on the unit's term loan for 5 years from the date of commercial production, capped at ₹10 lakh in any year. It is explicitly additional to the benefits already available under the central ATUF scheme. Apparel and made-ups and technical textiles are the covered segments, and new, expansion and diversification projects all qualify.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Non-competitive. The department verifies ATUF registration, the textile segment, the commercial production date and the interest actually paid, then releases 5% subject to the annual ceiling.
Application Process
- 1
Take the loan
Sanction the project term loan and register under the central ATUF scheme.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
How large is the subsidy?
5% interest subsidy, subject to a maximum of ₹10 lakh per year.
For how long?
5 years from the date of commercial production.
Which segments qualify?
Apparel and made-ups, and technical textiles.
Is it instead of ATUF?
No — the policy states it is in addition to benefits under ATUF.
Do expansion projects qualify?
Yes — new, expansion and diversification projects are all covered.
Sources
Data on this page is compiled from official program and provider references.
