TUFS was introduced in 1999 to catalyze investments in all the sub-sectors of textiles and jute industry by way of 5% interest reimbursement. The scheme was initially approved from April, 1999 to March 31st, 2004. Subsequently, the scheme was extended in 2004 and again in 2007 with modifications and further restructured w.e.f 28/04/2011 to 31/03/2012 which was then further extended / rolled over upto 31/03/2013 then Revised Restructured form with effect from 01.04.2013 to 12.01.2016. Investments under TUFS had gained notable momentum during its operational life span of over 17 years.
In order to promote ease of doing business in the country and achieve the vision of the Government for generation of employment and promotion of export through “Make in India” and of Zero effect and Zero defect manufacturing, it has been decided that the existing provisions of the Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) be modified in term of the benefits under the scheme and the procedure for claiming the benefits under the scheme. A new scheme “Amended Technology Upgradation Fund Scheme (ATUFS)” has been approved by the Government for implementation which will provide one time capital subsidy for investment in the employment and technology intensive segments of the textile value chain, keeping in view promotion of exports and imports substitution. The scheme will be credit linked and projects for technology upgradation covered by a prescribed limit of term loans sanctioned by the lending agencies will only be eligible for grant of benefits under it.