About this employment scheme
Technology Upgradation Fund Scheme (TUFS), now running as ATUFS (Amended TUFS), is a Ministry of Textiles scheme providing capital investment subsidy (CIS) to textile mills and garment manufacturers for purchase of specified modern machinery. ATUFS provides: Garmenting segment: 15% CIS (max ₹30 crore per unit); Technical Textiles segment: 15% CIS (max ₹200 crore per unit); General textiles (spinning/weaving/processing): 10% CIS (max ₹30 crore per unit); Women-owned SMEs: Additional 10% on top (total 25% CIS). The scheme is interest-reimbursement based through designated lending institutions (SBI, Bank of Baroda, SIDBI, etc.). Eligible machinery: Only Ministry-notified modern textile machinery — not second-hand or refurbished. Budget: ₹17,822 crore over 2016-22, extended for ongoing claims. Over 6,000 textile units supported. ATUFS was particularly crucial for India's technical textile sector (medical textiles, agro-textiles, geo-textiles, industrial textiles).
Programme snapshot
| Scheme Name | TUFS / ATUFS Scheme 2026 — Technology Upgradation Fund for Textile Mills: 15-25% Capital Subsidy |
| Launched By | Government of India |
| Launch Year | 2016 |
| Benefit | Capital Investment Subsidy (CIS) 10-25% of machinery cost + Max subsidy ₹30-200 crore per unit + Women-owned SMEs get extra 10% subsidy + Covers spinning, weaving, processing, garmenting, technical textiles |
| Category | Employment |
| Last Verified | 5 September 2026 |
| Official Portal | https://txcindia.gov.in |
What workers receive
Capital Investment Subsidy (CIS) 10-25% of machinery cost + Max subsidy ₹30-200 crore per unit + Women-owned SMEs get extra 10% subsidy + Covers spinning, weaving, processing, garmenting, technical textiles
Which workers qualify
- ✓Registered textile manufacturing units (spinning, weaving, knitting, processing, garmenting, technical textiles)
- ✓Must be purchasing notified modern textile machinery (list at txcindia.gov.in)
- ✓Machinery must be NEW (not second-hand or refurbished)
- ✓Unit must take a term loan from empanelled lending institution for machinery purchase
- ✓Women-owned SME textiles get additional 10% CIS on top of standard rate
Documents required at enrolment
Registration process
- 1Purchase notified textile machinery by taking term loan from an ATUFS-empanelled bank
- 2Apply online at ATUFS portal (txcindia.gov.in) within 1 year of machinery purchase
- 3Submit: machinery invoice, loan sanction letter, CA investment certificate
- 4Office of Textile Commissioner (OTC) verifies and releases CIS directly to loan account
Official Government Portal
The single official window for this scheme is txcindia.gov.in. Filing is free, so steer clear of touts promising guaranteed selection.
🔗Apply on txcindia.gov.in