
Get Upto 35% Capital Investment Subsidy for Textile Units
Capital Investment Subsidy for Textile Units Scheme The Capital Investment Subsidy for Textile Units Scheme is provided by the government to promote modernization, competitiveness and sustainability within India’s textile sector. This scheme provides financial support in the form of capital subsidies to encourage investment in plant and machinery, technology upgradation and infrastructure development. With the growing demand for quality and export – ready textile products, the Government of India and various state governments have introduced capital subsidy programs to boost textile MSMEs and large – scale units. Through the Ministry of Textiles, schemes like ATUFS (Amended Technology Upgradation Fund Scheme), state capital subsidy schemes (Haryana Textile Policy 2019) and PLI for Textiles have gained momentum. Objectives of the Capital Investment Subsidy Scheme Promote investment in new and upgraded textile machinery. Enhance production capacity and reduce manufacturing costs. Support MSMEs and large-scale units in the textile value chain. Generate employment in rural and semi-urban regions. Boost exports and enable global competitiveness. Eligibility Criteria for Capital Subsidy Who Can Apply for Capital Subsidy in Textile Sector Registered MSMEs and Large-scale Textile Units. Units involved in spinning, weaving, knitting, dyeing, processing, garment manufacturing and technical textiles. New enterprises or existing units undertaking expansion or modernization. Enterprises registered under Haryana Udyam Memorandum (HUM) or Udyam Certificate. Sector Requirements for Capital Subsidy The project must be located in a state with an active textile capital subsidy policy (eg. Haryana, Gujarat, Maharashtra, Tamil Nadu). Minimum investment thresholds may apply depending on the scheme. Capital Subsidy Schemes Available for Textile Units 1) ATUFS (Amended Technology Upgradation Fund Scheme) – ATUFS is a centrally-sponsored scheme under the Ministry of Textiles offering 15% capital subsidy for garmenting and technical textile units (up to Rs. 30 crore investment) and 10% for weaving and processing sectors (up to Rs. 20 crore). 2) Haryana Textile Policy – Capital Subsidy Support – Haryana Government offers a 20% capital subsidy (maximum Rs. 20 lakhs) on new machinery under its Textile Policy 2019. Eligible units must be located in A, B, C, or D category blocks. 3) PLI Scheme for Technical Textiles – Production Linked Incentive (PLI) scheme promotes high-value textiles. Eligible companies receive incentives on incremental sales of technical textiles and MMF products. 4) State-Specific Capital Subsidy Policies – States like Maharashtra, Gujarat, and Tamil Nadu have their own capital subsidy schemes for the textile sector, including interest subsidy and electricity duty exemption. Documents Required for Capital Investment Subsidy Application UDYAM Registration / HUM Certificate Detailed Project Report (DPR) Land ownership/lease documents Machinery invoices and payment proof CA Certificate of investment Bank loan sanction letter (if applicable) GST registration and compliance proof How The Industrial Subsidy Consultant Can Help You At Rapid Consulting, we specialize in assisting textile manufacturers to secure maximum government subsidies under Capital Investment Subsidy schemes. From eligibility evaluation and documentation to DPR preparation and departmental liaison, we ensure end-to-end support. MSME Subsidy Consultancy Statutory Approvals for Textile Units Industrial Insurance Advisory FAQs on Capital Investment Subsidy for Textile Units Q1. What is the capital subsidy percentage for textile units under ATUFS? Ans – It ranges from 10% to 15% based on the sector, with upper limits of Rs. 20-30 crore. Q2. Can existing textile units apply for capital investment subsidy? Ans – Yes, existing units expanding or modernizing machinery are eligible. Q3. Is the subsidy applicable on second-hand machinery? Ans – No, subsidies are applicable only on brand-new machinery. Q4. How long does it take to receive the subsidy? Ans – It varies between 6-12 months based on documentation and state-specific timelines. Q5. Do banks coordinate with government departments for capital subsidy? Ans – Yes, for certain schemes like ATUFS, banks verify machinery and investment before forwarding it to the nodal agency. Want to avail up to 35 % capital subsidy for your textile unit? Contact the best industrial subsidy consultant today to evaluate your eligibility, prepare DPRs, and manage end-to-end documentation for your subsidy claim. Capital Investment Subsidy for Textile Units is a transformative opportunity for Indian manufacturers to upgrade technology, reduce costs, and expand operations. With multiple central and state-level schemes, textile entrepreneurs can significantly improve profitability. Rapid Consulting simplifies the process with professional guidance and full-scale support, ensuring you never miss out on financial benefits your unit is entitled to. For more assistance on textile industry subsidies or compliance services, visit Rapid Consulting and take the first step toward smarter growth. Check All Government Subsidies for your Business – MSME Subsidy Schemes 2025