TUFS/ATUFS — Textile Tech Upgrade Fund — Quick Overview
| Scheme Name | TUFS / ATUFS Scheme 2026 — Technology Upgradation Fund for Textile Mills: 15-25% Capital Subsidy | sidb.gov.in |
| 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 | 25 May 2026 |
| Official Portal | https://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
How to Apply for TUFS/ATUFS — Textile Tech Upgrade Fund Online?
- 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
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.inFrequently Asked Questions — TUFS/ATUFS — Textile Tech Upgrade Fund
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