The Technology Upgradation Fund Scheme (TUFS) is a flagship initiative by the Ministry of Textiles aimed at boosting the textile and jute industries by providing financial assistance for technological upgrades. Launched in 1999, TUFS is designed to facilitate the modernization of production facilities, improve competitiveness, and promote sustainable growth in India’s textile sector.

Key Features of TUFS:

1. Objective:
TUFS is focused on incentivizing the modernization and technology upgradation of India’s textile and jute industries. The scheme helps textile units adopt modern equipment and technologies, thereby increasing productivity, efficiency, and product quality while reducing production costs.

2. Types of Assistance:
TUFS offers financial assistance in several forms, such as:
– Capital Subsidy: A direct subsidy on the capital invested in technology upgrades. This is particularly beneficial for SMEs looking to modernize without facing excessive financial burdens.
– Interest Subsidy: A subsidy on the interest of loans taken for technological upgradation, making credit more affordable for textile units.
– Reimbursement of Interest: Interest reimbursement on the loans taken for machinery and equipment purchases.
– Credit Linked Capital Subsidy: In some cases, TUFS offers a capital subsidy on the purchase of new machinery.

3. Segments Covered:
TUFS covers a wide range of segments in the textile value chain, including:
– Weaving
– Spinning
– Processing
– Knitting
– Garment manufacturing
– Technical textiles
– Powerlooms
– Jute industries

4. Amended TUFS (ATUFS):
In 2016, the scheme was amended to focus more on employment generation and export promotion. Under ATUFS, there are two main types of capital investment subsidies:
– 15% capital subsidy for garmenting and technical textiles sectors, with a cap of ₹30 crore.
– 10% capital subsidy for weaving, processing, jute, and composite units, with a cap of ₹20 crore.

5. Eligibility:
– The scheme is open to new and existing textile units that are undertaking technology upgrades.
– Units involved in ginning, weaving, knitting, processing, garment manufacturing, and jute sectors are eligible to apply.
– The machinery or equipment purchased must meet prescribed technical standards.

6. Incentives for Green Technology:
The scheme encourages the adoption of energy-efficient and eco-friendly technologies. Units investing in green technologies receive additional financial support.

7. Impact:
TUFS has played a crucial role in making the Indian textile industry globally competitive by increasing efficiency, reducing costs, and improving the quality of production. By encouraging capital investment in new machinery, it has helped thousands of textile units across the country modernize their production processes and keep pace with global standards.

8. How to Apply:
– Applications can be submitted through the respective financial institutions approved by the Ministry of Textiles.
– The process involves submitting project proposals, obtaining approval, and accessing the financial benefits of the scheme.

Benefits of TUFS:
– Enhanced global competitiveness for Indian textile units.
– Increased efficiency, reduced energy consumption, and improved product quality.
– Encouragement for small and medium enterprises to modernize.
– Growth in exports due to better-quality textile production.
– Employment generation in the textile and allied industries.

TUFS is a vital program for anyone involved in the textile industry, providing critical support to ensure that Indian textile units can upgrade their infrastructure, increase productivity, and become major global players in the textile market.

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