ATUFs

Amended Technology Upgradation Fund Scheme (ATUFs)

Ministry of Textiles, Government of India.

ACTIVITIES COVERED UNDER ATUFS FOR “BENCHMARKED MACHINERY” :-

Subsidy Cap:-

Sr. No.SegmentRate of capital investment subsidyCeiling /Maximum
1For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups: 15% on Eligible Machineryup to Rs. 30 Crore
2For Weaving for brand new Shuttle-less Looms (including weaving preparatory & knitting), Processing, Jute, Silk and Handloom:10% on Eligible Machinery Max.up to Rs. 20 Crore
3For Composite unit / Multiple Segments: If the eligible capital investment of Garmenting & Technical Textile category is
3(a)More than 50% of the eligible project cost15% on Eligible Machinery up to Rs. 30 Crore
3(b)Less than 50% of the eligible project cost 10% on Eligible Machineryup to Rs. 20 Crore

When to apply

Within 6 Months of Sanction of TL (for obtaining UID) using i-ATUF

Plant & Machinery

New Plant & Machinery listed with government are qualified. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

Assistance on all accesserioes is available subject to maximum 20% of basic cost of plant & machinery

Source of Purchase for Plant of Machinery

directly purchase from registered manufacturer of machinery or registered authorised agent of such manufacturer

When to purchase

Machinery needs to be purchased after sanction of loan.

Cost of Plant & Machinery

Basic Cost of Plant & Machinery excluding Taxes, Duties and any other Charges.

Location of Machinery

Anywhere In india

Timeline for Machinery Installation

Within one year from date of sanction of term loan. Extension may be allowed.

Machinery Specification

Term loan conditions:
Qualified lending institutionIncludes Public Sector Banks, State financial corporation's (SFC), State Industrial devlopment corporations (SIDCs), Scheduled banks, Cooperative Banks and NBFCs registered with RBI
Sanction date Prior to date of commercial invoice of plant & machinery
Manimum loan of machinery cost Minimum 50% of the total eligible machinery cost
Tenure of loan (Minimum ) "For MSMEs Minimum 03 Years For Non-MSMEs Minimum 05 Years"
Transfer of existing loan Yes, Subject to terms & conditions mentioned under Scheme.
Advance payment limit Advance payment up to the limit of his own share ( promotor contribution ) in machine cost can be made by applicant prior to sanction of finance.
Machinery life as Commercial Production The beneficiary unit will have to remain in commercial production for ten(10) years after installation of plant & machinery.
Benefits under other scheme:-Textile units are permitted to avail of benefits of State Government's Schemes in addition to the benefit provided under this Scheme.
Where subsidy be creditedSubsidy amount will be directly credited in account of beneficiary.