SMEpost

Govt revises the provisions of Technology Upgradation Fund Scheme

SMEPost Bureau & Agencies

The Government has approved “Amended Technology Upgradation Fund Scheme (A-TUFS)” in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) for technology upgradation of the textile industry with one time capital subsidy for eligible benchmarked machinery for a period of seven years from 2015-16 to 2021-22. Keeping in view the levels of modernization achieved in the spinning segment, the rates and ceiling of subsidy for different segments available under ATUFS are indicated 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 of Garmenting and Technical Textiles category is less than 50%, 10% on eligible Machines Rs. 20 crore*

Ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garmenting sector vide Resolution dated 25.07.2016. The additional incentive of 10% will be provided to the garmenting units which would be availing the 15% Capital In1vestment Subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of 3 years. The cap on capital investment subsidy for the eligible machinery in the garmenting units has therefore been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10% will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).

An allocation of Rs. 17,822 crore has been approved for seven years to meet the committed liabilities of Rs. 12,671 crore and Rs. 5151 crore  for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs. 1830 crore. However, there is no specific budget provision for any particular segment, including Handloom sector  since the scheme is demand driven.

The above information was given by the Union Textiles Minister, Smriti Zubin Irani, in a written  reply to a Rajya Sabha Question.

Source: PIB