The Indian Government has approved “Amended Technology Upgradation Fund Scheme (ATUFS)” 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.
It has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivize production and employment generation in the garmenting sector. 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. 5,151 crore for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs. 1,830 crore.
Also Read – SIMA impressed with ATUFS’ features
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. The garmenting units will avail the additional incentive of 10 per cent which is now eligible for availing the 15 per cent Capital Investment Subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of 3 years. This additional subsidy of 10 per cent will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).
