Technology Upgradation Fund Scheme (TUF) – Central Government – For Textile units
Scheme for incentive to Textile industries
Scheme is valid from 13th January, 2016 to 31st March, 2022.
Technology Upgradation
- Induction of new machinery by textile unit with state-of- the-art technology as specified annually by Technical advisory-cum-monitoring committee – technology lesser than specified one will not be eligible for this scheme
Eligible Amount for subsidy
- Basic cost of machinery after its installation and commissioning
- Accessories/ sample machines/ spares up to 20% of basic cost of machinery
Capital Subsidy
| Segment | Rate of capital Investment subsidy |
| Garmenting, technical textiles | 15% subject to Max. Rs. 30 crore |
| Weaving for brand new shuttle-less looms (including weaving preparatory and knitting), processing, jute, silk and Handloom | 10% subject to Max. Rs. 20 crore |
| Composite unit/Multiple segments – if the eligible capital investment in respect of garmenting and technical textiles category is more than 50% of eligible project cost | 15% subject to Max. Rs. 30 crore |
| Composite unit/Multiple segments – if the eligible capital investment in respect of garmenting and technical textiles category is less than 50% of eligible project cost | 10% subject to Max. Rs. 20 crore |
Conditions for availing subsidy
- Entity should take term loan from notified bank with minimum 50% of total eligible machinery cost – minimum repayment period for MSME 3 years and other category 5 years
- Unit shall function for loan taken period
- Second hand machinery not eligible
- Application to be filed within 6 months of sanction of term loan
- Installation and commissioning of machinery shall done within one year from date of sanction of term loan