ATUFS — Amended Technology Upgradation Fund Scheme

The Amended Technology Upgradation Fund Scheme (ATUFS) is a capital investment subsidy initiative by the Ministry of Textiles to support the modernisation of India's textile industry. It provides a direct grant on the purchase of eligible benchmarked machinery across six segments: garmenting, technical textiles, weaving, processing, yarn, handloom, and powerloom. The subsidy rates vary from 10% to 25% of the machinery cost depending on the segment. Machinery must be purchased from manufacturers registered under ATUFS. The subsidy is non-repayable and does not involve any equity dilution, making it a pure incentive to reduce the capital burden on textile manufacturers.

• Capital Investment Subsidy of 10%–25% on benchmarked textile machinery, varying by segment.
• Non-repayable grant — no equity dilution or interest burden.
• Open to spinning, weaving, knitting, processing, garmenting, technical textiles, handloom, and powerloom units.
• Machinery must be purchased from registered manufacturers and be benchmakred under ATUFS.
• Applications accepted year-round on the portal; subsidy credited directly to bank account.

Any textile manufacturing unit engaged in spinning, weaving, knitting, processing, garmenting, technical textiles, handloom, or powerloom can apply, provided they purchase eligible benchmarked machinery from registered manufacturers. The scheme is open to units across all states in India. There is no requirement for DPIIT or MSME registration mentioned. The unit must be a textile manufacturing entity; individual founders are not specified—businesses are eligible.

ATUFS — Amended Technology Upgradation Fund Scheme is open to startups at any stage. It is open to startups registered anywhere in India.

ATUFS — Amended Technology Upgradation Fund Scheme accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The funding is a Capital Investment Subsidy (CIS) disbursed as a direct grant that requires no repayment and no equity dilution. Subsidy rates are: 25% for handloom, 15% for garmenting, technical textiles, weaving, and powerloom, and 10% for spinning/yarn and processing. The grant offsets upfront capital expenditure on approved textile equipment, reducing the payback period. Additionally, units can combine the subsidy with bank term loans for the remaining cost, making the overall project more bankable.

ATUFS — Amended Technology Upgradation Fund Scheme is offered by Ministry of Textiles, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Before you apply to ATUFS — Amended Technology Upgradation Fund Scheme, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.