ATUFS Textile Subsidy Scheme

The Amended Technology Upgradation Fund Scheme(ATUFS)

Introduction :

‍The Amended Technology Upgradation Fund Scheme(ATUFS), initiated by the Ministry of Textiles, Government of India, aims to promote ease of doing business and support the "Make in India" initiative. The guidelines focus on providing financial assistance to the textile industry for upgrading technology to boost production, quality, and exports while ensuring minimal environmental impact, termed as "Zero effect and Zero defect" manufacturing.

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Objectives :

‍ATUFS targets to enhance the competitiveness of India’s textile sector by Facilitating credit-linked Capital Investment Subsidy (CIS) for the acquisition of state-of-the-art technology. Promoting investments that improve productivity, quality, and export capability while substituting imports. Supporting the adoption of environmentally sustainable technologies in textile manufacturing.

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Quantum of Assistance:

General Provision:

The subsidy is provided based on the basic cost of the specified machinery, which excludes taxes, duties, and other charges. The support is directly linked to the credit availed by the entity for purchasing eligible machinery.

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Subsidy Rates:

‍15% Subsidy For Garmenting and Technical Textiles, with a maximum limit of ₹30 crores, 10% Subsidy For brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk, and Handloom sectors, with a maximum of ₹20 crores.

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Composite Units:

‍15% if the capital investment in Garmenting and Technical Textiles is more than 50% of the project cost.10% if less than 50%.

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Eligible Activities :

Eligible activities under ATUFS include Acquisition and installation of new machinery for weaving, knitting, garment manufacturing, and technical textiles. Upgradation of existing technology to meet current industry standards. Initiatives that lead to resource efficiency and environmental sustainability are also supported under the scheme.

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Eligibility Criteria :

‍Entities eligible for ATUFS include Companies registered under the Companies Act. LLPs and MSMEs. Entities having anIndustrial Entrepreneur Memorandum (IEM). Entities must engage in manufacturing within the textile sector to qualify for subsidies under ATUFS.

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Application and Documentation :

‍Applications for ATUFS must be submitted electronically, ensuring transparency and efficiency. Required documentation includes detailed project reports, investment details, and information about the technology to be upgraded. This process is managed through a robust web-based platform maintained by the Textile Commissioner's office.

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Procedure for Disbursement and Implementation

Credit Linkage:

The subsidy is only available to entities that have availed a term loan from a notified lending agency covering at least 50% of the total eligible machinery cost.

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Procedure:

After installation and commissioning of the machinery, and upon commencement of production, the subsidy is disbursed in full in one installment.

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Conclusion :

‍ATUFS is a significant initiative by the Indian government to modernize the textile sector by facilitating technological upgrades. By providing financial subsidies and streamlining the application process, ATUFS encourages textile units to adopt modern technologies that enhance productivity, efficiency, and sustainability, aligning with global standards and boosting the sector's competitiveness on the international stage.

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Rapid Consulting's Role in Facilitating the Process:

Rapid Consulting could assist textile manufacturers in navigating the ATUFS by providing expert guidance on eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme's guidelines to maximize the financial benefits of technology upgradation. Their services would help businesses understand the detailed procedural steps, the technology standards required, and the financial implications, thereby facilitating smooth access to the scheme’s benefits.

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Impact of the Scheme on Industrial Growth :

The ATUFS is designed to bolster the textile sector's competitiveness by providing capital investment subsidies for adopting advanced technology. This initiative supports the broader "Make in India" agenda aimed at boosting employment and exports with zero defects and zero effect in manufacturing. By facilitating technological upgrades, the scheme not only enhances productivity and quality but also promotes sustainable industrial practices within the textile sector.

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Future Prospects and Enhancements :

‍Future prospects for ATUFS could involve expanding its reach to include emerging technologies not currently covered under the scheme, potentially broadening the base of eligible machinery and technology to encourage more comprehensive upgrades across the textile sector. Additionally, the scheme could increase its funding caps or modify eligibility criteria to include a wider range of textile manufacturers, thus deepening its impact on India's industrial growth.

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FAQs ?

What is the Amended Technology Upgradation Fund Scheme (ATUFS) ?

ATUFS provides financial support in the form of capital investment subsidies to textile manufacturers for upgrading technology in specific segments of the textile industry.

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Who is eligible for this scheme ?

Eligible entities include companies, LLPs, and MSMEs in the textile sector, registered under relevant Indian laws and planning significant technological upgrades.

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How does an enterprise apply for this scheme ?

Enterprises must apply online, providing detailed project information and demonstrating the purchase of eligible technology from approved manufacturers or suppliers.?

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What are the financial benefits of participating in this scheme ?

The scheme offers a subsidy ranging from 10% to15% of the capital investment, with maximum caps varying by segment, aimed at reducing the financial burden of technological upgrades.?

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What happens if incorrect information is provided in the application ?

Providing incorrect information can lead to the rejection of the subsidy application, and in cases of fraud, legal penalties might be applied.

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How does Rapid Consulting assist in this process ?

Rapid Consulting ensures that enterprises fully understand the ATUFS guidelines, correctly implement the technology upgrades, and comply with the financial and operational requirements to secure and maximize subsidy benefits.

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Target Sectors in India :

‍The Amended Technology Upgradation Fund Scheme(ATUFS) seeks to boost the textile industry by providing a Capital Investment Subsidy (CIS) for new technology machinery. It targets multiple segments within the textile sector, including weaving, knitting, technical textiles, and garment manufacturing. The scheme aims to enhance productivity, quality, and export potential while fostering employment through upgraded technology.

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Eligibility for Existing Businesses and New Ventures :

‍Entities eligible for ATUFS include registered companies, limited liability partnerships, and MSMEs involved in the textile industry. Eligibility extends to entities investing in specified technology upgrades. Importantly, the technology must meet the benchmarks set by the Technical Advisory-cum-Monitoring Committee (TAMC).

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Integration with Other Subsidies and Incentives :

‍ATUFS allows for integration with other government incentives, enhancing the financial support for entities under the scheme. It aims to leverage additional resources to maximize the impact on the textile sector's growth and development.

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Application Process :

‍Applications for ATUFS are processed through notified lending agencies, which coordinate with the Textile Commissioner for subsidy disbursement. The application involves a detailed project report and proof of compliance with technology specifications. Notably, the scheme is credit-linked, requiring entities to secure term loans covering at least 50% of the machinery cost.

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Geographical Preferences in India :

‍While ATUFS is implemented nationwide, there is a focus on regions lacking advanced textile marketing infrastructure. The scheme prioritizes balanced development across all states, aiming to improve technology access uniformly.

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Why Choose Rapid Consulting ?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.

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‍End-to-End Assistance:

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

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Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability. We offer comprehensive support throughout the subsidy acquisition process.

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Initial Consultation:

We begin by understanding the specific needs and objectives of our clients. Through detailed consultations, we assess eligibility criteria and determine the feasibility of the subsidy application.

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Documentation Assistance:

Our team assists in preparing all necessary documentation required for the subsidy application. This includes gathering financial records, project details, investment plans, and any other relevant information needed for submission.

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Application Management:

We manage the entire application process, ensuring that all documents are submitted accurately and on time. Our experts liaise with relevant government authorities and agencies to streamline the submission process.

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Negotiation and Follow-up:

In case of any queries or requests for additional information from the authorities, we handle negotiations on behalf of our clients. We ensure prompt responses and provide any further documentation required.

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Subsidy Disbursement:

Upon approval, we facilitate the disbursement of the subsidy amount to our clients. We ensure that all procedural formalities are completed smoothly for the timely release of funds.

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Post-Subsidy Support:

Our services extend beyond subsidy acquisition. We provide ongoing support to our clients, assisting with compliance requirements, reporting obligations, and any other post-subsidy concerns.

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With Rapid Consulting,

clients can rely on our expertise and experience to navigate the complexities of the ATUFS scheme for textile units. We strive to maximize benefits and facilitate the growth and development of the enterprises.

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How to Reach Us ?

Website:

‍Visit our official website for detailed information, service offerings, and to schedule an online consultation.? Direct Contact: Call us at +91-9467248028 /9416506136 or email info@rapidconsulting.in to discuss your needs directly with our experts.

Office Visit:

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001. Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

ATUFS textile subsidy scheme in Haryana, ATUFS textile subsidy scheme in Hisar

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ATUFS textile subsidy scheme in haryana, ATUFS textile subsidy scheme in hisar