Amended Technology Upgradation Fund Scheme (ATUFS): Key Benefits, Eligibility, and Process for Import-Export Businesses
October 06, 2025
What is the Amended Technology Upgradation Fund Scheme (ATUFS)?
The Amended Technology Upgradation Fund Scheme (ATUFS), managed by the Ministry of Textiles, promotes modernization in India’s textile industry by providing a Capital Investment Subsidy (CIS) on eligible machinery. It covers both indigenous and imported machines, ensuring India’s textile sector can compete globally through advanced technology, better productivity, and export-quality production.
Key Benefits of ATUFS Scheme for Importers and Exporters
- Capital Subsidy up to ₹30 Crores on benchmarked machinery
- Financial support for import of advanced textile machinery
- Encourages export competitiveness through modern production systems
- One-time subsidy released after installation and commencement of production
- Eligible existing textile manufacturer
- Can be availed along with state subsidies (unless restricted)
Eligibility Criteria under ATUFS Scheme
- Units registered under the Companies Act, 2013
- MSMEs and large textile units engaged in:
- Weaving and knitting
- Processing of fibres, yarns, fabrics, garments, and made-ups
- Technical textiles, silk, jute, and handloom sectors
- Only new benchmarked machinery purchased directly from manufacturers/authorized dealers is eligible
- Imported machinery must be sourced from authorized stockists or customs warehouses
- At least 50% of project cost must be financed via term loan from an eligible bank/NBFC
Step-by-Step Application Process of ATUFS Scheme
- Apply for term loan from eligible lending agency
- Submit pre-authorization and UID request via i-TUF portal
- Purchase and install benchmarked machinery
- File subsidy claim on i-TUF portal with required documents
- Verification by Textile Commissioner, Mumbai
- Approval and forwarding to Ministry of Textiles, Delhi
- Release of subsidy to the applicant
Documents Required to Avail ATUFS Subsidy
- Company registration documents
- Term loan sanction letter from bank/NBFC
- Machinery invoice and import bills (if applicable)
- Installation & commissioning certificate
- UID and MIC details for machinery
- Auditor’s Certificate (CA/Statutory)
- Online application on i-TUF portal
Key Features of ATUFS Scheme You Should Know
- Only new benchmarked machinery is eligible
- Accessories/spares up to 20% of machinery cost covered
- UID and MIC codes ensure traceability of machines
- Second-hand/tested machinery is not eligible
- Subsidy released only after installation and commercial production
How ATUFS Helps Import-Export Businesses
- Improves India’s export competitiveness in global textile markets
- Enhances compliance with international quality standards
- Encourages diversification into high-demand technical textiles
Recent Government Updates on ATUFS
- The scheme has been extended beyond March 2022 and continues under the Ministry of Textiles, Delhi.
- The list of eligible machinery is last updated on 01 April 2016, by the Textile Commissioner, Mumbai
Frequently Asked Questions (FAQs) on ATUFS
- Who implements ATUFS?
– The Ministry of Textiles through the Textile Commissioner via the i-TUF portal. - What is the maximum subsidy available?
– Up to ₹30 Crores per entity. - Can I claim subsidy on second-hand machinery?
– No, only brand-new benchmarked machinery is eligible. - Are EOUs and SEZ textile units eligible?
– Yes, both are covered. - Is a term loan compulsory?
– Yes, at least 50% of project cost must be financed by an eligible lender. - Which sectors can benefit under ATUFS?
– Weaving, knitting, processing, technical textiles, garments/made-ups, silk, jute, and handloom. - When is the subsidy released?
– After installation, commissioning, and start of commercial production. - Can ATUFS be availed along with state subsidies?
– Yes, unless restricted by the state scheme. - How are machines tracked under ATUFS?
– Via Unique Identification Number (UID) and Machine Identification Code (MIC). - Where do I apply?
– Applications must be filed on the i-TUF online portal.
Glossary of Key Terms
- ATUFS: Amended Technology Upgradation Fund Scheme
- CIS: Capital Investment Subsidy
- UID: Unique Identification Number (for machinery)
- MIC: Machine Identification Code
- EOU: Export Oriented Unit
- SEZ: Special Economic Zone
- MSME: Micro, Small & Medium Enterprises
- TAMC: Technical Advisory-cum-Monitoring Committee
How STAR GROUP Can Assist in Availing ATUFS Benefits
Availing ATUFS subsidy requires precise documentation, correct loan structuring, and compliance with Ministry of Textiles guidelines.
At STAR GROUP, we provide:
- Eligibility assessment for import-export businesses
- Guidance in preparing subsidy and loan documents
- Coordination with Textile Commissioner & Ministry of Textiles
- Compliance support for machinery imports and UID/MIC approvals
- Seamless filing through the i-TUF portal
???? With STAR GROUP’s expertise, importers and exporters can maximize ATUFS benefits and strengthen their competitiveness in global textile trade.
