Amended Technology Upgradation Fund Scheme (ATUFS): Most Important Topic

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  • In a significant boost to the dwindling textile sector, the Union Ministry of Textiles has introduced Amended Technology Upgradation Funds Scheme (ATUFS) for wider financial and operational benefits for players in the entire value chain.

  • Introduced first in 1999 to replace age-old technology with brand new ones for improving operational efficiency of textiles units, the TUFS was revised & upgraded time & again to incorporate new players and encourage them bring in new investments in the sector. Industry sources estimate billions of rupees of new investment post TUFS introduction.

  • Notified on Thursday, the ATUFS allows co-operative banks to lend to textile units for technology upgradation under this scheme. The ATUFS, which is set to benefit the synthetic textile sector immensely, has also been extended to limited liability partnership (LLP) firms.

  • “The ATUFS is set to boost textile exports from India. It is a good initiative taken by the government, with expansion of a new class of financial and operational parameters. The scheme will also benefit domestic textile units,” said Ujwal Lahoti, Chairman, The Cotton Textile Export Promotion Council (Texprocil).

Highlights of the Scheme

  • Limited Liability Partnerships will also be eligible for capital subsidy

  • Co-operative banks included as lending agency under the scheme

  • Textile Commissioner to set up Technical Committee to prepare list of machinery manufacturers.

  • Accessories, attachments, sample machines, spares also eligible for subsidy up to 20% of basic machinery cost

  • Except in merger or takeover, plant & machinery bought with subsidy under TUFS shall not be disposed of before 10 years

  • Textile units permitted to avail benefits of state government schemes in addition to ATUFS benefits.

  • Related Keywords: Amended Technology Upgradation Fund Scheme, attract investment, benefit textile industry, better quality in processing industry, better technology looms, boost Make in India initiatives, Cabinet Committee on Economic Affairs, export, introduction of ATUFS, promotion of technical textiles, replace existing RR TUFS, targets employment generation

  • The Cabinet Committee on Economic Affairs on Wednesday gave nod to the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” which will replace the existing Revised Restructured Technology Upgradation Funds Scheme (RR-TUFS) for technology upgradation of the textile industry.

  • The Cabinet Committee on Economic Affairs on Wednesday gave nod to the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” which will replace the existing Revised Restructured Technology Upgradation Funds Scheme (RR-TUFS) for technology upgradation of the textile industry.

  • A budget provision of Rs 17822 cr has been approved of which Rs 12671 cr is for committed liabilities under the ongoing scheme and Rs 5151 cr for new cases under ATUFS.

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