ATUFS — Amended Technology Upgradation Fund Scheme
Ministry of Textiles · Central government
ATUFS provides a 10%–25% capital investment subsidy on benchmarked textile machinery to 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
Capital Investment Subsidy (CIS) is offered on benchmarked textile machinery that qualifies under the scheme, spread over six segments. The subsidy rate stands at 15% for garmenting, technical textiles, weaving and powerloom, 10% for processing and yarn, and 25% for handloom.
To claim the subsidy, the machinery has to be bought from manufacturers who are registered, and it must be benchmarked as per the scheme's requirements.
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
- Units engaged in textile manufacturing, covering spinning, weaving, knitting, processing, garmenting, technical textiles, handloom and powerloom - Such units must purchase machinery that qualifies under the benchmarked list
How to apply
1. Enrol your textile unit on the ATUFS online portal at texmin.gov.in to receive a unit ID. 2. Buy only eligible benchmarked machinery from manufacturers who are registered under ATUFS. 3. Once the machinery is installed, file a subsidy claim along with purchase invoices, the machinery inspection report, bank loan sanction (where applicable), and the unit registration certificate. 4. The Textile Commissioner carries out verification of the physical installation and the documents. 5. Claims that are approved are credited straight to your bank account; the process usually takes 60–90 days from the point when documentation is complete.
Frequently asked questions
Who can apply for ATUFS?
Any textile manufacturing unit in an eligible segment — spinning, weaving, knitting, processing, garmenting, technical textiles, handloom or powerloom — may apply, provided it buys eligible benchmarked machinery from registered manufacturers.
What is the subsidy rate under ATUFS?
Capital Investment Subsidy rates differ by segment: handloom units receive 25%, garmenting, technical textiles, weaving and powerloom units receive 15%, and spinning/yarn and processing units receive 10%.
Is the subsidy a one-time benefit?
Yes. CIS is a one-time, non-repayable grant covering part of the cost of eligible benchmarked machinery, and it does not involve any equity dilution.
What machinery qualifies?
Under ATUFS, only machinery benchmarked under the 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 via the ATUFS online portal run by the Textile Commissioner's office, submitting your machinery purchase invoice, bank loan sanction letter (where applicable) and unit registration documents. Once verification is complete, the subsidy is credited straight to your bank account.
Is there an application deadline?
Under the Amended Technology Upgradation Fund Scheme (ATUFS), applications are accepted throughout the year, though approval depends on the budget remaining available. It is therefore advisable to apply soon after installing machinery, as funds may be exhausted.
Sectors
- Manufacturing Industrial
Details last verified on 14 September 2026. Source: the issuer's published information.