TUFS — Technology Upgradation Fund Scheme for Textiles

What is the Technology Upgradation Fund Scheme (TUFS)?

The Technology Upgradation Fund Scheme (TUFS) is a Government of India initiative by the Ministry of Textiles to modernize the Indian textile and garment industry. It provides 15–25% capital subsidy on approved machinery investments by textile units — covering weaving, processing, garmenting, technical textiles, and more.

TUFS is implemented through nodal banks (SBI, PNB, Bank of Baroda, and others) and the Textile Commissioner's office.

Key Benefits

Subsidy is a one-time capital credit — it reduces your loan principal after investment is verified.

Who is Eligible?

Eligible entities:

• MSMEs and large-scale textile manufacturers
• Weaving, spinning, knitting, dyeing, processing, and garmenting units
• Cooperative societies in textiles
• Technical textile manufacturers

Types of investments covered:

• New machinery (specified in the Technology List)
• Expansion of existing units with new technology
• Modernization of old equipment

Not covered:

• Second-hand machinery
• Buildings and civil construction
• Working capital

Technology List

TUFS subsidizes specific types of machinery listed in the official Technology List issued by the Ministry of Textiles. Check the latest version at tufs.gov.in before purchasing — only listed technology qualifies.

Common machines on the list:

• Rapier/Air-jet/Water-jet/Projectile looms
• Spinning machinery (ring frame, rotor, compact)
• Knitting machines (circular, warp)
• Processing machinery (stenters, bleaching, mercerizing)
• CAD/CAM for textiles
• Embroidery machines (computerized multi-head)

Documents Required

1. Udyam Registration Certificate (for MSMEs)
2. Project report — detailing machinery to be purchased, total project cost
3. Bank loan sanction letter (from nodal bank)
4. Quotation/invoice from machinery supplier
5. CA-certified financial statements (last 2 years for existing units)
6. Land and premises documents (ownership/lease)
7. GST registration certificate
8. Aadhaar/PAN of proprietor/directors

How to Apply — Step by Step

Step 1 — Approach a Nodal Bank

Visit a TUFS nodal bank branch — SBI, PNB, Bank of Baroda, SIDBI, and others are nodal banks. Tell them you want to avail TUFS for textile machinery purchase.

Step 2 — Submit Project Report

Submit your project report detailing:

• Type and quantity of machinery
• Cost of machinery (as per supplier quotation)
• Total project cost

Step 3 — Bank Appraisal and Loan Sanction

The bank appraises your project, verifies machinery is on the TUFS Technology List, and sanctions the loan.

Step 4 — Register on TUFS Portal

Register your unit and loan details on tufs.gov.in. Get your TUFS Registration Number (TRN).

Step 5 — Purchase and Install Machinery

Purchase the machinery from approved suppliers. Keep all invoices and installation certificates.

Step 6 — Inspection and Subsidy Claim

After installation:

1. Bank conducts inspection
2. Submit utilization certificate and inspection report on TUFS portal
3. Textile Commissioner's office approves subsidy
4. Capital subsidy credited to your loan account — reducing outstanding principal

Frequently Asked Questions

1. Can I buy machinery first and then apply for TUFS?

No. You must get the TUFS registration BEFORE purchasing machinery to be eligible for subsidy. Retroactive claims are not accepted.

2. Is TUFS applicable for handloom weavers?

Yes, but through a separate sub-component. Contact your state's handloom office or the District Industries Centre for the handloom-specific TUFS process.

3. My existing plant needs new looms. Can I get TUFS for expansion?

Yes. Modernization and expansion of existing units are covered. The new machinery must be from the Technology List and the project requires bank financing.

4. I am in the powerloom sector. Am I eligible?

Yes. Powerloom units are eligible for the weaving component (shuttle-less looms). Check with the Powerloom Service Centre or District Industries Centre for state-specific powerloom support stacked on top of TUFS.

5. How long does it take to get the subsidy?

After all documentation is complete and inspection done: typically 3–6 months for capital subsidy release. Delays are common — follow up with the Textile Commissioner's regional office.

Official Links