Amended Technology Upgradation Fund Scheme 2026: Up to ₹30 Crore Subsidy, Eligibility & Application

At a glance

About the scheme

Launched by the Ministry of Textiles under the Make in India and Zero Defect Zero Effect initiatives, the Amended Technology Upgradation Fund Scheme (ATUFS) encourages technological advancement across the textile value chain. It provides a credit-linked Capital Investment Subsidy to help textile enterprises modernize equipment, scale up production, and create jobs—particularly for women. The scheme covers segments such as weaving, garmenting, technical textiles, processing, handloom, silk, and jute, reducing dependence on imports and boosting domestic export competitiveness.

Benefits

• Garmenting and Technical Textiles: 15% Capital Investment Subsidy on eligible machinery, capped at ₹30 crore per entity.
• Weaving (shuttle-less looms, preparatory, jute, silk, handloom): 10% Capital Investment Subsidy on eligible machinery, capped at ₹20 crore per entity.
• Composite units with more than 50% investment in garmenting and technical textiles: 15% subsidy capped at ₹30 crore.
• Composite units with less than 50% investment in garmenting and technical textiles: 10% subsidy capped at ₹20 crore.
• Eligible accessories, attachments, and sample machines covered up to 20% of machine cost.

Who can apply (eligibility)

• Entity must be registered under the Companies Act or as per MSME definitions (Udyam).
• Entity must possess an Industrial Entrepreneur Memorandum (IEM) acknowledgement or be registered with the State Directorate/Textile Department.
• Both new and existing manufacturing units producing textiles according to their registered product line are eligible.
• Only new benchmarked machinery purchased from notified manufacturers or their authorized agents is eligible.
• Machinery must be purchased after term loan sanction from a notified lending agency.
• Machine Identification Code (MIC) must be visibly inscribed on the machinery.
• Machinery must be physically verified during Joint Inspection Team (JIT) visits.

Who cannot apply

• Second-hand or used machinery is strictly not permitted.
• Units cannot claim subsidy for the same machinery under any other Central Government scheme.
• Individual units (subsidies are capped at the entity level, and prior benefits under RRTUFS reduce the available cap).

Documents required

• Certificate of Incorporation under Companies Act or MSME Registration (Udyam Certificate).
• Industrial Entrepreneur Memorandum (IEM) acknowledgement or State Textile Department registration.
• Commercial purchase invoice(s) showing invoice date and payment proof (bank statement, payment receipts).
• Manufacturer authorization certificate if procured through an authorized agent or stockist.
• Machinery installation certificate or commissioning report.
• Term loan sanction letter and disbursement proof from a notified lending agency.
• Term loan account statement.
• Undertaking confirming machinery was purchased after loan sanction and is new and unused.
• Declaration that no benefit is being claimed under any other Central Government scheme for the same machinery.
• Photographs of installed machinery clearly showing the Machine Identification Code (MIC).
• Joint Inspection Team (JIT) verification report.

How to apply

1. 1Install the eligible benchmarked machinery at the textile manufacturing unit.
2. 2Log in to the official iTUFS online portal (itufs.texmin.gov.in).
3. 3Submit the ATUFS subsidy application online and register machinery details.
4. 4Receive the Unique Identification Number (UID) generated for your application.
5. 5Undergo physical verification conducted by the Joint Inspection Team (JIT).
6. 6Track application progress online via UID until final approval and fund release by the Ministry of Textiles.

Frequently asked questions