This Scheme, which was started on 1st April, 1999, has given major thrust to the Textile Sector. On 1st November, 2007, the Ministry of Textiles announced continuation of TUFS for the entire period of 11th Five Year Plan, i.e., upto 31st March, 2012 with special thrust on garmenting, technical textiles and processing segments of the industry. However, the Scheme was kept in abeyance from 28th June, 2010 to 27th April, 2011 and for the period 28th April, 2011 to 31st March, 2012, the Restructured Technology Upgradation Fund Scheme was introduced, which continued upto 31st March, 2013. The Scheme was again revised on 4th October, 2013 and introduced from 1st April, 2013 as Revised Restructured Technology Upgradation Fund Scheme (RRTUFS).

The office of Textile Commissioner appointed M/s. Wazir Advisors Pvt. Ltd., Gurgaon, on 16th April, 2015, for undertaking the work of evaluation of Restructured Technology Upgradation Fund Scheme (RTUFS) and Revised Restructured Technology Upgradation Fund Scheme (RRTUFS). This Study was to cover all stakeholders like beneficiaries, implementing lending agencies, industry associations, etc. and to be completed within four months.

The Ministry of Textiles issued a Resolution dated 13th January, 2016, modifying the provisions of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) and introduced a new scheme “Amended Technology Upgradation Fund Scheme (ATUFS)”, which will be effective from date of issue for a period of seven years upto 31st March, 2022. The Budget provision for the Scheme is Rs. 17822 crore for next seven years. It is to attract investment of Rs. One lakh crore and generate employment for 30 lakh persons.

The cases pending for issue of UID, since September, 2014 as per records of Office of Textile Commissioner shall be covered under RRTUFS. Under the new scheme, individual entity will be eligible for one time capital subsidy only on the eligible investment, as per the rates and overall subsidy cap indicated below:

• Garmenting, Technical Textiles – Capital subsidy of 15% on eligible machines; CIS per individual entity Rs. 30 crore. As per Resolution dated 25th July 2016, additional incentive of 10% will be provided to garmenting units and the CIS would stand enhanced from Rs. 30 crore to Rs. 50 crore.
• Weaving for brand new Shuttlelless Looms (including weaving preparatory and knitting), processing, jute, silk and handlooms – Capital subsidy of 10% on eligible machines; CIS per individual entity Rs. 20 crore.
• Composite units/Multiple Segments – If eligible capital investment in respect of Garmenting and Technical Textiles is more than 50% of eligible project cost – Capital subsidy of 15% on eligible machines; CIS per individual entity Rs. 30 crore.
• Composite units/Multiple Segments – If eligible capital investment in respect of Garmenting and Technical Textiles is less than 50% of eligible project cost – Capital subsidy of 10% on eligible machines; CIS per individual entity Rs. 20 crore.

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

The benefits under the Scheme shall be available only if the eligible benchmark machinery is purchased by availing term loan from a notified agency. Term loan should not be for less than three years including moratorium (for SSI – five years). Term loan component of machinery should be kept at a minimum of 50% of total cost of project. The Unit should work for atleast for the minimum period of term loan. Capital Investment Subsidy will be released in full in one go after satisfactory commissioning/installation and commencement of production.