ATUFS: Union Minister for textile Shri Piyush Goyal recently reviewed the Amended Technology Up-gradation Fund Scheme (ATUFS).
Along with the Textile Minister, this scheme was reviewed by the Minister for State for Textiles Darshana Jardosh with various ministries, departments, textiles industry associations, and banks at the 5th Inter-Ministerial Steering Committee meeting organized by the textile ministry.
Key Points of the 5th Inter-Ministerial Steering Committee meeting:
- They reviewed the ATUFS to boost the Indian textile industry by enabling the ease of doing business, bolstering exports and fuelling employment.
- The timeline for conduct of IMSC meeting quarterly was fixed.
- At the meet the following decisions were taken:
- To resolve pending issues include reducing the compliance burden by accepting only single certificate from the concerned bank instead of multiple documents regarding evidence of payment for claimed machineries.
- To include the consideration of standalone embroidery machines with effect from inception of the ATUFS.
- To simplify the procedure for joint inspection using a calibrated approach to linking joint inspect to subsidy support size by reducing burden on bracket lower than Rs 50 lakh instead of the current 100 per cent
- Special measure was introduced to ease liquidity flow in the industry by introducing an option for getting part subsidy released against the bank guarantee.
- The Technology Upgradation Fund Scheme was introduced by the textile ministry in 1999.
- It was introduced as a credit-linked subsidy scheme intended for modernization and technology up-gradation of the Indian textile industry, promoting ease of doing business, generating employment and promoting exports.
- Since then, the scheme has been implemented in various versions.
- The ongoing ATUFS was approved in 2016 and implemented through web-based iTUFS platform.
- Under the scheme, the capital investment subsidy is provided to benchmarked machinery installed by the industry after physical verification.
- ATUFS was approved for a period from 2015-16 to 2021-22 with an allocation of Rs 17,822 crore (Rs 12,671 crore for committed liability of previous versions of TUFS and Rs 5,151 crore for new cases under ATUFS).