What is Amended Technology Up-gradation Fund Scheme (A-TUFS) ?


  • The Union government has taken a decision to introduce an amended technology up-gradation fund scheme (A-TUFS) in place of the existing revised, restructured TUFS has brought cheer to the textile industry.
  • The scheme would ease the financial burden of textile units and enable higher investments in the sector.
  • A-TUFS would enable the textile industry to ease its financial position and also plan investments.
  • The new scheme specifically targets employment generation and exports by encouraging apparel and garment industry.
  • This will help in providing employment especially to women, and increase India's share in global exports.
  • The scheme would generate investments to the tune of Rs.1 lakh crore and create over 30 lakh jobs, the government said after the cabinet approved A-TUFS.
  • The spinning sector, however, is not likely to be included in the scheme as it already has excess capacity.
  • The government's decision to make budgetary allocation for the committed liability of the earlier schemes comes as a great relief to the industry, which is going through a tough time.
  • Under the new scheme, there will be two broad categories - apparel, garment and technical textiles, where 15% subsidy would be provided on capital investment, subject to a ceiling of Rs.30 crore for entrepreneurs over a period of five years' and subsectors.
  • The remaining sub-sectors would be eligible for 10% subsidy, subject to a ceiling of Rs.20 crore on similar lines.
  • A budgetary 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 A-TUFS. 
  • The scheme will come into effect from the date of notification.