Question : Introduction of ATUFS

(a) whether the Union Government has cleared the Amended Technology Upgradation Fund Scheme by replacing the existing one to give a boost to Make in India in the textiles sector and if so, the details thereof and the benefits likely to be accrued therefrom;

(b) whether the new scheme specifically targets the employment generation and exports by encouraging the apparel, garment and technical textiles;

(c) if so, whether the budget provisions have been made for the purpose and the subsidy will be provided to the entrepreneurs, who invest in the technical textiles sector under the new scheme and if so, the details thereof;

(d) the number of centres of excellence set up across the country under Technology Mission on Technical Textiles along with their objectives/functions and the funds allocated and utilized by these CoEs for research and innovative technology to promote the use of technical textiles in different sectors; and

(e) whether the said scheme would ease the financial burden of textile units and enable higher investments in the textile sector, if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE)
IN THE MINISTRY OF TEXTILES
(SHRI SANTOSH KUMAR GANGWAR)

(a): Yes, Madam. The Government has approved the introduction of “Amended Technology Upgradation Fund Scheme (A-TUFS)” in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RRTUFS), for technology Upgradation of the textiles industry with one time capital subsidy for eligible machinery.

The details thereof are given below:-

Sl. No. Segment Rate of Capital Investment Subsidy (CIS) CIS per individual entity

1. Garmenting, Technical Textiles 15% on eligible Machines Rs. 30 crore*

2. Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom. 10% on eligible Machines Rs. 20 crore*

3(a)
Composite unit /Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost.

15% on eligible Machines




Rs. 30 crore*





3(b) Composite unit/ Multiple Segments - If the eligible capital investment in respect Garmenting and Technical Textiles category is less than 50%, 10% on eligible Machines Rs. 20 crore*


*In case the applicant had availed subsidy earlier under RRTUFS, he will be eligible for only the balance amount within the overall ceiling fixed for an individual entity. The maximum subsidy for overall investment by an individual entity under ATUFS will be restricted as indicated above for respective segments.

(b): Yes, Madam.

(c): A budget provision of Rs. 5151 crore has been made under ATUFS for new cases from 13.01.2016 to 31.03.2022, which includes benefit for technical textile sector.

(d): The information with regard to Centres of Excellence set up across India under Technology Mission on Technical Textiles is given at Annexure-I.

(e): Yes, Madam. The scheme would facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the textile industry. It will also indirectly promote investment in textile machinery (having benchmarked technology) manufacturing.

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