Boosting Textile Industry Through Technology Upgradation

News:Union Minister of Textiles has informed Rajya Sabha about the Amended Technology Upgradation Fund Scheme(ATUFS).


About Amended Technology Upgradation Fund Scheme(ATUFS):

  • The Technology Upgradation Fund Scheme was introduced by the Government of India in 1999.
  • It’s objective was to facilitate new and appropriate technology for making the textile industry globally competitive and to reduce the capital cost for the textile industry.
  • In 2015,the government approved Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry.
  • The objective of the ATUFS is to facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in textile industry and also to indirectly promote investment in textile machinery manufacturing. 
  • Under the scheme, higher incentives have been provided to garmenting/technical textiles for reimbursement of Capital Investment Subsidy.

Eligibility of the ATUFS scheme:Only those entities that fall under the following sectors are eligible to apply:

  • Weaving, Weaving Preparatory and Knitting
  • Processing of fibres, yarns, fabrics, garments and made up
  • Handloom Sector
  • Silk Sector
  • Jute Sector
  • Garment/Made up manufacturing
  • Technical textiles.

Additional information:

Other initiatives taken by the Government to boost textile sector:

Power Tex India:  

  • A comprehensive scheme for powerloom sector was launched in April, 2017 with an outlay of Rs. 487 crore for three years.  
  • This scheme has components relating to powerloom upgradation; infrastructure creation and concessional access to credit,. 
  • The scheme has been designed to attract investment of Rs.1000 crore and employment to 10000 persons in the powerloom sector and will also result in higher returns to powerloom units.

National Handloom Development Programme and National Handicrafts Development Programme

  • The programme aims at holistic development of handloom and handicrafts clusters through integrated approach. 
  • The strategic interventions under the programme include financial assistance for new upgraded looms and accessories, design innovation, product and infrastructure development, skill upgradation among others.

India Handloom Brand’ Scheme:

  • The scheme has been launched by the Government in 2015 to enhance the quality in weaving, designing and defect free handloom products for safeguarding the interest of the buyers in the domestic and international markets. 
  • It will promote production of niche handloom products with high quality, authentic traditional designs with zero defect and zero effect on the environment.

SAMARTH-The Scheme for Capacity Building in Textile Sector (SCBTS):  

  • The scheme has been approved with an outlay of Rs 1300 crore with a target to train 10 lakh people in various segments of textile sector by March 2020.

Scheme for Integrated Textile Park(SITP): 

  • This scheme is implemented in Public Private Partnership mode to attract private investments in developing new clusters of textiles manufacturing. 
  • Government of India provides financial assistance up to 40% of the project within a ceiling of   Rs. 40 crores. 19 new projects were sanctioned from 2014 onwards.

North East Region Textile Promotion Scheme (NERTPS): 

  • This scheme promotes textiles industry in the North Eastern Region by providing infrastructure, capacity building and marketing support to all segments of textile industry. 
  • The scheme has an outlay of Rs. 500 crores during 2017-18 to 2019-20.