ATUFS — Amended Technology Upgradation Fund Scheme
Ministry of Textiles · Central government
A capital investment subsidy of 10%–25% on benchmarked textile machinery under ATUFS funds textile units.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Garmenting, technical textiles, weaving, and powerloom segments attract a 15% subsidy, while processing and yarn receive 10%. Handloom enjoys the highest support at 25%. These rates apply to eligible benchmarked textile machinery.
Machinery must be sourced from registered manufacturers and must be benchmarked under the scheme to qualify for the Capital Investment Subsidy (CIS).
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Textile manufacturing units engaged in spinning, weaving, knitting, processing, garmenting, technical textiles, handloom, or powerloom. - Purchase of eligible benchmarked machinery is required.
How to apply
- Register your textile unit on the ATUFS online portal at texmin.gov.in and receive a unit ID. - Acquire eligible benchmarked machinery exclusively from manufacturers registered under ATUFS. - Once installation is complete, file a subsidy claim accompanied by purchase invoices, a machinery inspection report, any bank loan sanction, and the unit registration certificate. - The Textile Commissioner conducts a physical verification of installation and reviews the submitted documents. - Upon approval, the subsidy is transferred directly to your bank account; disbursement generally occurs within 60–90 days following submission of all required paperwork.
Frequently asked questions
Who can apply for ATUFS?
Any textile manufacturing unit in 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) is set at 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 covering the cost of eligible benchmarked machinery, and it does not require repayment or any equity stake.
What machinery qualifies?
Only machinery benchmarked under the ATUFS scheme and bought from manufacturers registered with the Ministry of Textiles is eligible. The Textile Commissioner maintains the list of approved machinery and manufacturers.
How do I claim the subsidy?
Apply through the ATUFS online portal run by the Textile Commissioner's office, submitting the machinery purchase invoice, bank loan sanction letter (if applicable), and unit registration documents. Once verified, the subsidy is credited directly to your bank account.
Is there an application deadline?
Applications under ATUFS are accepted throughout the year, subject to budget availability. Apply soon after machinery installation to reduce the risk of funds being exhausted.
Sectors
- Manufacturing Industrial
Details last verified on 3 August 2026. Source: the issuer's published information.