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TUFS/ATUFS — Textile Tech Upgrade Fund

TUFS / ATUFS Scheme 2026 — Technology Upgradation Fund for Textile Mills: 15-25% Capital Subsidy | sidb.gov.in

2026 ✓EmploymentCapital 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 textilesLaunched: 2016Updated: May 2026
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Reviewed by Schemes In India Editorial Team · Last verified: 25 May 2026

TUFS/ATUFS — Textile Tech Upgrade Fund — Quick Overview

Scheme NameTUFS / ATUFS Scheme 2026 — Technology Upgradation Fund for Textile Mills: 15-25% Capital Subsidy | sidb.gov.in
Launched ByGovernment of India
Launch Year2016
BenefitCapital 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
CategoryEmployment
Last Verified25 May 2026
Official Portalhttps://txcindia.gov.in

What is TUFS/ATUFS — Textile Tech Upgrade Fund?

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).

Under this scheme, eligible beneficiaries 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. The scheme was launched in 2016 and is implemented by the Government of India.

Benefits of TUFS/ATUFS — Textile Tech Upgrade Fund

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

Who is Eligible for TUFS/ATUFS — Textile Tech Upgrade Fund?

  • 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 for TUFS/ATUFS — Textile Tech Upgrade Fund

0/1 documents ready

How to Apply for TUFS/ATUFS — Textile Tech Upgrade Fund Online?

  1. 1Purchase notified textile machinery by taking term loan from an ATUFS-empanelled bank
  2. 2Apply online at ATUFS portal (txcindia.gov.in) within 1 year of machinery purchase
  3. 3Submit: machinery invoice, loan sanction letter, CA investment certificate
  4. 4Office of Textile Commissioner (OTC) verifies and releases CIS directly to loan account
🏛️

Official Government Portal

Apply directly on the official government website. This is the only authorised portal — never pay anyone to apply on your behalf.

🔗Apply on txcindia.gov.in
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Frequently Asked Questions — TUFS/ATUFS — Textile Tech Upgrade Fund

Only Ministry-notified modern machinery qualifies. Key eligible categories: Automatic Shuttle-less Looms (rapier, air-jet, water-jet), Computerized Flat/Circular Knitting Machines, Ring/Compact Spinning Frames (modern varieties), Processing machinery (mercerizing, sanforizing, stenters with energy-saving features), CAD/CAM for garmenting, Automatic Cutting Machines, Industrial Embroidery Machines, Nonwoven Production Lines (for technical textiles). Full notified list at txcindia.gov.in → ATUFS → Eligible Machinery List.

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