The Government is implementing Amended Technology Upgradation Fund Scheme (ATUFS), a credit linked Capital Investment Subsidy (CIS) scheme during 2016 to 2022 with an outlay of ₹ 17822 crore to catalyze capital investments for technology upgradation and modernization of the textile industry.

The scheme promotes ease of doing business in the country and achieve the vision of generating employment and promoting exports through “Make in India’’ with "Zero effect and Zero defect" in manufacturing. The scheme facilitates augmenting of investment, productivity, quality, employment, exports along with import substitution in the textile industry. It also indirectly promotes investment in textile machinery (having benchmarked technology) manufacturing. Every eligible individual entity (not the unit) will be entitled for reimbursement of Capital Investment Subsidy (CIS) under this scheme, as per the following rates:

Sl.No.	Segment	Rate of Capital Investment Subsidy (CIS)
1.	Garmenting, Technical Textiles	15% subject to an upper limit of ₹ 30 crores
2.	Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom.	10% subject to an upper limit of ₹ 20 crores
3(a)	Composite unit /Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost.	15% subject to an upper limit of ₹ 30 crores
3(b)	Composite unit/ Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is less than 50% of the eligible project cost.	10% subject to  an upper limit of ₹ 20 crores

In case the entity had availed subsidy earlier under RRTUFS, it will be eligible to the extent of balance subsidy for new or existing units within the overall ceiling fixed for an individual entity.         

Ministry 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 vide Resolution dated 25.07.2016. The Government has also approved reforms inter alia to boost Employment Generation and Exports in the Made-Ups Sector vide Resolution dated 10.01.2017. The additional incentive of 10% is provided to both the garmenting and made-ups units registered under ATUFS on achievement of employment projected by them.

With a view to position the country as a global leader in Technical Textiles, the government has approved the proposal for creation of National Technical Textiles Mission at a total outlay of ₹ 1480 Crore, with a four-year implementation period from FY 2020-21 to 2023-24. Under Component-I (Research, Innovation and Development) a category of research and development activity is planned to be taken up for development of machineries, test-equipment concerning technical textiles, and to enhance indigenous manufacturing of technical textiles machinery in the country. This research is planned to be coordinated at Central Manufacturing Technology Institutes.

This information was given by the Minister of Textiles, Smriti Zubin Irani, in a written reply in the Rajya Sabha today.

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Capital Investment Subsidy under ATUFS incentivises textile modernization with tiered sectoral rates and employment-linked additional support. ATUFS operates as a credit-linked Capital Investment Subsidy scheme entitling every eligible individual entity (not the unit) to reimbursement of CIS under sector-specific rates and ceilings; prior subsidies are offset against the overall entitlement. SPELSGU under ATUFS provides an additional employment-linked incentive to qualifying garmenting and made-ups units on meeting projected employment. A National Technical Textiles Mission funds R&D and development of machinery and test-equipment to strengthen indigenous manufacturing of technical textiles machinery.