The Cabinet Committee on Economic Affairs on 30 December 2015 approved the introduction of Amended Technology Upgradation Fund Scheme (ATUFS) in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), for technology upgradation of the textiles industry.
The new scheme will give a boost to Make in India in the textiles sector. It is expected to attract investment to the tune of one lakh crore rupees and create over 30 lakh jobs.
Highlights of Amended Technology Upgradation Fund Scheme
• Employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share in global exports.
• Promotion of Technical Textiles, a sunrise sector, for export and employment.
• Promoting conversion of existing looms to better technology looms for improvement in quality and productivity.
• Encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.
• A budget provision of 17822 crore rupees has been approved, of which 12671 crore rupees will be utilised for committed liabilities under the ongoing scheme, and 5151 crore rupees will be reserved for new cases under ATUFS.
• The implementation of the scheme will be executed and monitored online under iTUFS, launched in April 2015.
Under the new scheme, there will be two broad categories:
• Apparel, Garment and Technical Textiles, where 15 percent subsidy will be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years.
• Remaining sub-sectors will be eligible for subsidy at a rate of 10 percent, subject to a ceiling of 20 crore rupees on similar lines.