Technology Upgradation Fund Scheme

Subject : Schemes

Section :Industry

Concept :

Tiruppur Exporters’ Association has urged the Centre for a new Technology Upgradation Fund Scheme retrospectively from April 1, 2022, to extend the interest benefit to the exporting units.
The exporting units were expecting the new TUF scheme to come into effect from April 1, 2022, immediately after the expiry of the Amended Technology Upgradation Fund Scheme on March 31, 2022.

Amended Technology Up-gradation Fund Scheme (ATUFS)

The Ministry of Textiles had introduced Technology Upgradation Fund Scheme (TUFS) in 1999 as a credit linked subsidy scheme.
Objective:
- modernization and technology up-gradation of the Indian textile industry,
- promoting ease of doing business,
- generating employment and promoting exports.
Since then, the scheme has been implemented in different versions.
The ongoing ATUFS has been approved in 2016 and implemented through the web based iTUFS platform.
Capital Investment Subsidy is provided to benchmarked machinery installed by the industry after physical verification.
ATUFS was approved for a period from 2015-16 to 2021-22 with an allocation of Rs. 17,822 crore
The scheme is administered with a two stage monitoring mechanism by Technical Advisory-cum-Monitoring Committee (TAMC) and Inter-Ministerial Steering Committee (IMSC).
In 2019, IMSC decided to introduce physical verification of machinery and computation of subsidy before releasing committed liability under previous versions of the scheme.