Benefit Amount
15-20% capital subsidy on plant and machinery; concessional loans up to 90% of equipment costSubsidy, Loan
✓ Government Verified✓ Direct Bank Transfer
ℹAbout Technology Upgradation Fund Scheme
The Technology Upgradation Fund Scheme (TUFS) is a central sector scheme designed to make the textile industry globally competitive by facilitating technological upgradation of textile units. It provides financial assistance through concessional loans and government subsidies to help textile manufacturers upgrade their machinery and technology. The scheme covers spinning, weaving, processing, and garmenting sectors. It benefits small, medium, and large textile enterprises by reducing their capital burden for modernization. Key benefits include capital subsidies of 15-20% on plant and machinery, concessional loans, and eligibility for combined assistance. The scheme aims to enhance productivity, improve quality, reduce production costs, and generate employment in the textile sector across India.
Ministry
Ministry of Textiles
Benefit Type
Subsidy, Loan
✓Who Is Eligible?
The Technology Upgradation Fund Scheme is open to textile business owners and entrepreneurs across India who are engaged in spinning, weaving, processing, or garmenting activities. Eligible applicants include individuals, partnerships, companies, and cooperative societies. To qualify, your textile business must have been operating for a minimum of three years and should have an annual turnover of at least Rs. 5 lakh. There are no specific age restrictions mentioned for applicants. The scheme does not have caste or category-based restrictions and is available to all Indian citizens and registered business entities. There are no specific gender requirements, though women entrepreneurs are encouraged to apply. Your business should possess valid factory license or industrial license as per government regulations. You must maintain a bank account and have proper business registration documents. Environmental clearance is required if your textile unit falls under the category of industries requiring such clearance. Additionally, your business should be registered with EPF or ESIC as applicable. The scheme covers textile units of all sizes, including small, medium, and large enterprises. Check the official TUFS website at tufs.gov.in for any recent updates or additional eligibility criteria that may apply to your specific category of textile business.
Quick eligibility check:
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Gender: Male, Female, Other✓
Category: General, OBC, SC, ST, EWS📝How to Apply for Technology Upgradation Fund Scheme
Step 1: Visit the official TUFS website at tufs.gov.in to understand the scheme details and check if your textile business qualifies under the eligibility criteria. Step 2: Gather all required documents including your Aadhaar Card or PAN Card, business registration certificate, factory or industrial license, bank account details, last three years of balance sheets, detailed project report, machinery supplier quotations, and environmental clearance if applicable. Step 3: Prepare a detailed project report that clearly mentions the machinery you want to upgrade, the total project cost, and how the upgradation will benefit your business. Step 4: Register yourself on the TUFS portal and create your application profile with basic business information. Step 5: Upload all your documents on the portal in the specified format and submit your complete application along with the project report. Step 6: Track your application status on the portal and wait for approval from the concerned authorities. Step 7: Once approved, follow the disbursement process to receive your capital subsidy and avail the concessional loan facility as per the scheme guidelines. Contact the Ministry of Textiles helpline for any assistance during the application process.
Visit Official Portal →📄Documents Required11 required
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Aadhaar Card or PAN Card📋
Business Registration Certificate📋
Factory License or Industrial License📋
Bank Account Details (cancelled cheque)📋
Balance Sheet for last 3 years📋
Detailed Project Report (DPR)📋
Quotation from machinery suppliers📋
Partnership Deed or Memorandum of Association📋
Proof of ownership of premises📋
Environmental Clearance (if applicable)?Frequently Asked Questions
1Who is eligible to apply for TUFS?
Any textile unit engaged in spinning, weaving, processing, dyeing, printing, and garmenting is eligible. This includes proprietary concerns, partnerships, private and public limited companies, cooperative societies, and self-help groups with minimum 3 years of operation and annual turnover of at least Rs.5 lakh.
2What is the maximum subsidy I can get under TUFS?
The capital subsidy ranges from 15-20% of the cost of plant and machinery depending on the category of the unit (small, medium, or large) and the type of machinery being purchased. Additional concessional loans can cover up to 90% of the equipment cost.
3What documents are needed to apply?
Essential documents include Aadhaar/PAN, business registration, factory license, bank details, last 3 years balance sheets, detailed project report, machinery quotations, and proof of premises ownership. Environmental clearance and EPF/ESIC registration are required when applicable.
4How long does it take to get approval after applying?
The approval process typically takes 4-6 weeks from submission of complete application with all required documents. After approval, disbursement of subsidy is made after verification of machinery installation and invoice submission.
5Can new textile units apply for TUFS?
New textile units with less than 3 years of operation can apply, but they must meet minimum viability and operational standards. Preference is generally given to units with established track record and demonstrated financial stability.
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Get a detailed step-by-step walkthrough with tips, common mistakes to avoid, and expert guidance for Technology Upgradation Fund Scheme.
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