ATUFS To Get Rectified: Will Work On Incentives To Machinery Manufacturers

The Union Budget proposes Rs. 650 crore allocation for ATUFS for 2022-23. 

The Union Textile Ministry has drafted a new Technology Upgradation Fund Scheme, which will replace the existing Amended Technology Upgradation Fund Scheme (ATUFS).

“We have formulated a new scheme. We want to bring in an element of incentivising the machinery manufacturers too,” Textiles Secretary Upendra Prasad Singh said.

The technology upgradation fund schemes have so far supported the textile industry.

The ATUFS did not include the spinning sector.

The new scheme will include the spinning sector and the machinery manufacturers.

Approval for the new scheme is expected by March and that will come with fresh allocation of funds.

Apart from the total allocation of Rs. 12,382.14 crore in the Budget for the textile sector, the industry will see another Rs. 11,000 crore benefit through the Rebate of State and Central Taxes and Levies scheme and Remission of Duties and Taxes on Exported Products scheme.

A scheme for integrated development of the silk sector —Silk Samagra II, which was approved recently, is another scheme with substantial budget allocation (Rs. 875 crore) for next fiscal.