ATUFs

Amended Technology Upgradation Fund Scheme (ATUFs)

Ministry of Textiles, Government of India.

Operative period of scheme:- 09.02.2016 (13.01.2016 to 31.03.2022)
Objectives:-
- To promote ease of doing business and achieve the vision of generating employment & promoting exports through "Make in India" with "Zero effect and zero defect" in manufacturing.
- Facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in textile industry. It will also indirectly promote investment in textile machinery (having benchmarked technology) manufacturing.

Sr. No.	Segment	Rate of capital investment subsidy	Ceiling /Maximum
1	For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups:	15% on Eligible Machinery	up to Rs. 30 Crore
2	For 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
3	For Composite unit / Multiple Segments: If the eligible capital investment of Garmenting & Technical Textile category is
3(a)	More than 50% of the eligible project cost	15% on Eligible Machinery	up to Rs. 30 Crore
3(b)	Less than 50% of the eligible project cost	10% on Eligible Machinery	up to Rs. 20 Crore

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

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

Term loan conditions:
Qualified lending institution	Includes 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 credited	Subsidy amount will be directly credited in account of beneficiary.