Web Exclusive | December 2016
Amended TUFS gets green signal
The Indian Government has approved the Amended Technology Upgradation Fund Scheme (ATUFS) in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) with a one-time capital subsidy for eligible bench-marked machinery for a period of seven years from 2015-16 to 2021-22. This was disclosed by the Union Textiles Minister Smriti Irani at the Rajya Sabha.
The ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garment sector vide resolution dated 25.July, this year. The additional incentive of 10 per cent will be provided to the garmenting units which would be availing the 15 per cent Capital Investment subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of three years. Around Rs 17,822 crores have been approved for seven years to meet the committed liabilities of Rs 12,671 crores and Rs. 5151 crores for new cases under ATUFS.
The cap on capital investment subsidy for eligible machinery in garmenting units has therefore, been enhanced from Rs 30 crore which was the cap under ATUFS to Rs 50 crore. The additional subsidy of 10 per cent will be on achievement of projected production and employment generation.