ATUFS Textile Subsidy Scheme

Rapid Consulting specializes in facilitating the capital subsidy under the Amended Technology Upgradation Funds Scheme (ATUFS) for textile units, including handloom, silk, and jute units. We assist in securing a subsidy of up to 15% of fixed capital investment, with a maximum limit of Rs 30 Crore.

About the Service

About the Service

 

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.

Objectives : ATUFS targets to enhance the competitiveness ofIndia’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, andexport capability while substituting imports. Supporting the adoption ofenvironmentally sustainable technologies in textile manufacturing.

Quantum of Assistance:

General Provision: The subsidy is provided based on the basic cost ofthe specified machinery, which excludes taxes, duties, and other charges. The support is directly linked to the credit availed by the entity for purchasingeligible machinery.

Subsidy Rates: 15% Subsidy For Garmenting and Technical T extiles,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.

Composite Units: 15% if the capital investment in Garmenting andTechnical Textiles is more than 50% of the project cost.10% if less than 50%.

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 currentindustry standards. Initiatives that lead to resource efficiency and environmental sustainability are also supported under the scheme.

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.

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

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.

Procedure: After installation and commissioning of themachinery, and upon commencement of production, the subsidy is disbursed infull in one installment.

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 applicationprocess, ATUFS encourages textile units to adopt modern technologies thatenhance productivity, efficiency, and sustainability, aligning with global standards and boosting the sector's competitiveness on the international stage.

Rapid Consulting's Role in Facilitating the Process:

Rapid Consulting could assist textile manufacturersin navigating the ATUFS by providing expert guidance on eligibility requirements, preparing and submitting applications, and ensuring compliancewith 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.

Impact of the Scheme on Industrial Growth : The ATUFS is designed to bolster the textilesector'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 zerodefects and zero effect in manufacturing. By facilitating technologicalupgrades, the scheme not only enhances productivity and quality but alsopromotes sustainable industrial practices within the textile sector.

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

FAQs ?

What is theAmended Technology Upgradation Fund Scheme (ATUFS) ?

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

Who is eligible for this scheme ?

Eligible entities include companies, LLPs, andMSMEs in the textile sector, registered under relevant Indian laws and planningsignificant technological upgrades.

How does an enterprise apply for this scheme ?

Enterprises must apply online, providing detailedproject information and demonstrating the purchase of eligible technology fromapproved manufacturers or suppliers.?

What are the financial benefits of participating inthis scheme ?

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

What happens if incorrect information is providedin the application ?

Providing incorrect information can lead to therejection of the subsidy application, and in cases of fraud, legal penaltiesmight be applied.

How does Rapid Consulting assist in this process ?

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

Target Sectors in India : The Amended Technology Upgradation Fund Scheme(ATUFS) seeks to boost the textile industry by providing a Capital InvestmentSubsidy (CIS) for new technology machinery. It targets multiple segments withinthe textile sector, including weaving, knitting, technical textiles, andgarment manufacturing. The scheme aims to enhance productivity, quality, andexport potential while fostering employment through upgraded technology.

Eligibility for Existing Businesses and NewVentures : Entitieseligible for ATUFS include registered companies, limited liabilitypartnerships, and MSMEs involved in the textile industry. Eligibility extendsto entities investing in specified technology upgrades. Importantly, thetechnology must meet the benchmarks set by the TechnicalAdvisory-cum-Monitoring Committee (TAMC).

Integration with Other Subsidies and Incentives : ATUFS allows for integration with other governmentincentives, enhancing the financial support for entities under the scheme. Itaims to leverage additional resources to maximize the impact on the textilesector's growth and development.

Application Process : Applications for ATUFS are processed throughnotified lending agencies, which coordinate with the Textile Commissioner forsubsidy disbursement. The application involves a detailed project report andproof of compliance with technology specifications. Notably, the scheme is credit-linked,requiring entities to secure term loans covering at least 50% of the machinerycost.

Geographical Preferences in India : While ATUFS is implemented nationwide, there is afocus on regions lacking advanced textile marketing infrastructure. The schemeprioritizes balanced development across all states, aiming to improvetechnology access uniformly.

Why Choose Rapid Consulting ?

Specialized Expertise: Our team at Rapid Consulting boasts in-depthknowledge of subsidy schemes, ensuring you get the most out of your investment.

End-to-End Assistance: From initial assessment to final application, wemanage the entire process, making it seamless and hassle-free for yourbusiness.

Maximized Benefits: We ensure that you fully leverage the financialincentives available, boosting your company's growth and profitability.We offercomprehensive support throughout the subsidy acquisition process.

InitialConsultation: We begin by understanding the specific needs and objectivesof our clients. Through detailed consultations, we assess eligibility criteriaand determine the feasibility of the subsidy application.

DocumentationAssistance: Our team assists in preparing all necessary documentationrequired for the subsidy application. This includes gathering financialrecords, project details, investment plans, and any other relevant informationneeded for submission.

Application Management: We manage the entire application process, ensuringthat all documents are submitted accurately and on time. Our experts liaisewith relevant government authorities and agencies to streamline the submissionprocess.

Negotiation and Follow-up: In case of any queries or requests for additionalinformation from the authorities, we handle negotiations on behalf of ourclients. We ensure prompt responses and provide any further documentationrequired.

Subsidy Disbursement: Upon approval, we facilitate the disbursement ofthe subsidy amount to our clients. We ensure that all procedural formalitiesare completed smoothly for the timely release of funds.

Post-Subsidy Support: Our services extend beyond subsidy acquisition. Weprovide ongoing support to our clients, assisting with compliance requirements,reporting obligations, and any other post-subsidy concerns.

With Rapid Consulting, clients can rely on our expertise and experienceto navigate the complexities of the ATUFS scheme for textile units. We striveto maximize benefits and facilitate the growth and development of theseenterprises.

How to Reach Us ?

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

Office Visit: Our offices are open for in-person consultationsat 134, Rapid Consulting, First floor Below Paysam Restaurant, Near SamsungCare. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001. Here, you can meetwith our consultants who can provide personalized guidance tailored to yourbusiness's specific circumstances.Engage with Rapid Consulting today toleverage their expertise in enhancing your business's financial and operationalperformance through the Collateral Free Credit Guarantee Scheme and otherbeneficial state initiatives. Whether online, over the phone, or in person,Rapid Consulting is ready to assist you in advancing your business goals inHaryana.

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

 

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

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