Owners of textile and knitwear industrial units in Ludhiana have flagged severe financial stress as subsidies worth more than Rs. 250 crore (US $ 27.65 million) under the Amended Technology Upgradation Fund Scheme (ATUFS) remain blocked due to objections over documentation relating to imported machinery. Several cases have been pending with the Ministry of Textiles for as long as six years, leaving industrialists struggling to service bank loans taken to fund technology upgrades.
Industry representatives say the prolonged delay has disrupted production cycles, constrained working capital and dampened future investment plans in Ludhiana, one of India’s key textile hubs. More than 150 textile mill owners from the district have submitted grievances through the i-TUFS portal, which was launched by the Ministry of Textiles in December 2025. Nationwide, a total of 564 applications have been filed, underlining the scale of the problem.
According to Raj Mittal, chartered accountant and technical consultant to the Knitwear and Textile Association, Ludhiana, the ATUFS was launched in February 2016 and remained in force until 31 March 2022. The scheme provided subsidies for the purchase of imported machinery financed through bank loans. A large number of Ludhiana-based units invested in advanced equipment under the scheme and subsequently applied for reimbursement.
Mittal said many of these claims were rejected by the office of the textile commissioner on technical grounds, often without clearly specifying the deficiencies in the applications. He added that several cases had remained unresolved for more than six years, resulting in significant financial losses for micro, small and medium enterprises (MSMEs) and placing sustained pressure on their working capital.
In an effort to resolve the issue, representatives of the association recently met the textile commissioner, Vrinda Manohar Desai, in Mumbai. During the meeting, they raised concerns over prolonged delays, rejected claims and procedural hurdles in detail. Mittal said the commissioner acknowledged the industry’s concerns.
Vinod Thapar, chairman of the Knitwear Club, said the textile commissioner had given a clear and positive assurance that pending ATUFS cases would be resolved at the earliest. He said she had indicated that all possible steps would be taken to ensure the timely release of subsidies to eligible units and had conveyed a proactive approach towards supporting the MSME sector.
Industrialists in Ludhiana are now hoping that the assurance will translate into swift action, warning that further delays could deepen financial stress and adversely affect employment and investment across the region’s textile industry.
