In addition to fixing the timeline for conducting IMSC meeting quarterly to facilitate implementation, the review decided to reduce compliance burden by accepting only single certificate from the concerned bank instead of multiple documents regarding evidence of payment for claimed machinery; rationalisation of general register related to cases of consortium finance; and considering standalone embroidery machines with effect from inception of ATUFS.
The ministry of textiles will simplify the procedure for joint inspection using a calibrated approach to linking inspection to subsidy support size by reducing burden on bracket lower than ₹50 lakh instead of the present cent per cent, an official release said.
The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 as a credit-linked subsidy scheme intended for modernisation and technology upgradation of the textile industry, promoting ease of doing business, generating employment and promoting exports. Since then, the scheme has been implemented in different versions.
The ongoing ATUFS was approved in 2016 and implemented through the online iTUFS platform. Capital investment subsidy is provided to benchmarked machinery installed by the industry after physical verification.
ATUFS was approved from fiscals 2015-16 to 2021-22, with an allocation of ₹17,822 crore (₹12,671 crore for committed liability of previous versions of TUFS & ₹5151 crore for new cases under ATUFS).
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