For technology up gradation of the textile industry, the government has approved the Amended Technology Up gradation Fund Scheme (ATUFS) in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) with a one-time capital subsidy for eligible bench-marked machinery for a period of seven years from 2015-16 to 2021-22. This was disclosed to the Rajya Sabha by Union textiles minister Smriti Irani in.

The ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garment sector vide resolution dated 25.July, this year. The additional incentive of 10 per cent will be provided to the garmenting units which would be availing the 15 per cent Capital Investment subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of three years.

The cap on capital investment subsidy for eligible machinery in garmenting units has therefore, been enhanced from Rs 30 crores which was the cap under ATUFS to Rs 50 crores. The additional subsidy of 10 per cent will be on achievement of projected production and employment generation.

Around Rs 17,822 crores have been approved for seven years to meet the committed liabilities of Rs 12,671 crores and Rs. 5151 crores for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs 1,830 crores. However, there is no specific budget provision for any particular segment, including the handloom sector since the scheme is demand driven.