Technology Upgradation Fund Scheme (TUFS)
The Government of India (GoI), Ministry of Textiles (MoT), introduced Technology Upgradation Fund Scheme (TUFS) With Aim of ‘Make in India’ and ‘Zero Defect and Zero Effect’ in manufacturing, the government provides credit linked capital investment subsidy. This scheme would facilitate augmenting of investment, productivity, quality, employment, exports and import substitution in textile industry. It will also indirectly promote investment in textile machinery manufacturing.
Eligible Industries
Only those entitites that fall under the following sectors are eligible to apply:
- Weaving, Weaving Preparatory and Knitting
- Processing of fibres, yarns, fabrics, garments and made up
- Handloom Sector
- Silk Sector
- Jute Sector
- Garment/Made up manufacturing
- Technical textiles
Subsidy
Every individual entity will be eligible for one time capital subsidy only on the eligible investment as per the rates and the overall subsidy cap indicated below.
| S No | Segment | Rate of capital investment subsidy | Investment Up to ( Rs in crores ) |
| 1 | Garmenting & Technical Textiles, Composite unit Multiple Segments if the Eligible capital investment in respect of Garmenting and Technical textiles category in more than 50% of the eligible project cost | 15% on Eligible Machines | 30 |
| 2 | Composite unit Multiple Segments if the Eligible capital investment in respect of Garmenting and Technical textiles category in less than 50% of the eligible project cost | 10% on Eligible Machines | 20 |
| 3 | Weaving for brand new shuttle-less looms, (including weaving preparatory and knitting) Processing, Jute, Silk and Handloom | 10% on Eligible Machines | 20 |
When to apply: Within 6 months from date of Sanction of Term loan
NOTE: The Project Completion of (installation, Commissioning of machinery) Within one year from date of sanction of Term loan