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ATUFS — Amended Technology Upgradation Fund Scheme — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about ATUFS — Amended Technology Upgradation Fund Scheme — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

Who can apply for ATUFS?

Any textile manufacturing unit in the eligible segments — spinning, weaving, knitting, processing, garmenting, technical textiles, handloom, or powerloom — that purchases 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 does not involve any equity dilution.

What machinery qualifies for the subsidy?

Only machinery that is benchmarked under the ATUFS scheme and purchased from manufacturers registered with the Ministry of Textiles qualifies. The Textile Commissioner maintains a list of approved machinery and manufacturers.

How do I claim the subsidy?

Apply through the ATUFS online portal managed by the Textile Commissioner's office. You need to submit the machinery purchase invoice, bank loan sanction letter (if applicable), unit registration certificate, and a machinery inspection report. After verification, the subsidy is credited directly to your bank account.

Is there an application deadline?

ATUFS is a rolling scheme with no fixed deadline — applications are accepted year-round, subject to the availability of budget. It is advisable to apply promptly after machinery installation to avoid fund exhaustion.

Is DPIIT or MSME registration required?

The provided facts do not mention any requirement for DPIIT or MSME registration. Eligibility is based solely on being a textile manufacturing unit purchasing eligible machinery.

Does ATUFS take equity in my company?

No, ATUFS provides a capital investment subsidy, which is a grant — not a loan or equity investment. You receive the funds without giving up any ownership or paying interest.

Who offers ATUFS — Amended Technology Upgradation Fund Scheme?

ATUFS — Amended Technology Upgradation Fund Scheme is offered by Ministry of Textiles, a government body. It is provided as non-dilutive funding.

How do I apply for ATUFS — Amended Technology Upgradation Fund Scheme?

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.

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