The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) for technology upgradation of the textiles industry, with effect from the date of notification of the scheme.
A budget provision of Rs 17,822 crore has been approved, of which Rs 12,671 crore is for committed liabilities under the ongoing scheme, and Rs 5,151 crore is for new cases under ATUFS. The amended scheme would give a boost to “Make in India” in the textiles sector. It is expected to attract investment to the tune of Rs 1 lakh crore and create over 30 lakh jobs.
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Under the new scheme, there will be two broad categories — Apparel, Garment and Technical Textiles, in which 15 per cent subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years. Secondly, the remaining subsectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs.20 crore on similar lines.
As per the official release, the new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share inglobal exports. It will also focus on promotion of Technical Textiles, promoting conversion of existing looms to better technology looms for improvement in quality and productivity. The scheme encourages better quality in the processing industry and checks on the need for import of fabrics by the garment sector.
All cases pending with the Office of Textile Commissioner, which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect. Office of Textile Commissioner (TXC) is being reorganised; its offices are to be set up in each state. Officers of theTXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals underthe new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the StateGovernment agencies.
Bharat Tex Special Report 2026 
