TUFS
Technology Upgradation Fund Scheme for Textile & Apparel Sector
Flagship scheme of the Ministry of Textiles that supports modernisation of textile and apparel units by providing capital subsidy and interest support on investment in benchmarked machinery across the textile value chain.
Who Can Apply?
Textile & Apparel Units
Existing and new units in segments like spinning, weaving, knitting, processing, garmenting and technical textiles.
Benchmark Machinery
Investment must be in eligible benchmarked machinery and technology specified under the prevailing TUFS / ATUFS guidelines.
Institutional Finance
Units must avail institutional term loans from eligible banks / FIs for purchase of approved machinery.
Compliance with Textile Guidelines
Projects should adhere to conditions on minimum investment, capacity, sectoral caps and technology benchmarks defined by the Ministry of Textiles.
MSME & Non‑MSME Coverage
Micro, small, medium and larger textile units can be covered, with specific caps and subsidy rates for each segment.
No Duplication of Subsidy
Same machinery cannot simultaneously claim overlapping capital subsidies for the same component from multiple schemes.
Key Features
End‑to‑End Textile Coverage
Covers key segments of the textile value chain such as spinning, weaving, knitting, processing, garmenting and technical textiles.
Capital Investment Subsidy
Provides one‑time capital subsidy on eligible machinery cost, often 15% for garments and technical textiles and 10% for other specified segments under ATUFS.
Productivity & Quality Boost
Encourages adoption of modern, energy‑efficient machinery for higher productivity, better fabric quality and reduced wastage.
Export & Competitiveness Focus
Designed to help Indian textile units compete globally by upgrading technology to international standards.
Support for Technical Textiles
Special focus on technical textiles and garmenting segments where higher value‑addition and employment potential exist.
Structured Online Process
Applications, UID generation, and subsidy claims are processed via designated online portals with defined documentation.
Scheme Benefits
Application Process
Define Modernisation Project
Identify existing capacity gaps and prepare a technology upgradation plan with list of eligible benchmarked machinery.
Obtain Bank Sanction
Approach an eligible bank / FI with DPR for term loan; ensure the project is structured to be TUFS/ATUFS‑compatible.
Register on iTUFS / Relevant Portal
Register the unit and project details on the designated TUFS portal, obtain unique ID and upload required information.
Implement Project & Claim Subsidy
Purchase and install machinery, submit invoices and bank certifications; bank and Textile Commissioner process and release eligible subsidy.
Documents Required
Frequently Asked Questions
What is the main objective of TUFS?
The scheme aims to facilitate technology upgradation in the textile and apparel sector so that units can modernise machinery, improve productivity and enhance competitiveness.
Who can benefit from TUFS?
Textile and apparel units across segments such as spinning, weaving, processing, garmenting and technical textiles that invest in eligible benchmarked machinery through institutional finance can benefit.
Is TUFS a loan or a subsidy scheme?
TUFS works along with bank loans; enterprises take term loans from banks and the scheme provides capital subsidy or interest support on eligible investments.
What kind of subsidy does a textile MSME get?
Depending on segment and guidelines, MSMEs can typically receive around 10–15% capital subsidy on eligible machinery cost, subject to overall caps and norms.
How can a unit apply for TUFS benefits?
The unit prepares a DPR, gets term loan sanctioned, registers on the relevant TUFS portal with project details, and coordinates with its bank to file subsidy claims after machinery purchase and installation.
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