SubsidyMinistry of Textiles, Government of IndiaVerified 19 May 2026

Technology Upgradation Fund Scheme — Textiles

The Technology Upgradation Fund Scheme (TUFS) provides capital investment subsidies to modernize the textile industry in India. It supports entities involved in various textile manufacturing activities like weaving, knitting, and processing with subsidized rates linked to credit investment in eligible machinery, enhancing production efficiency and employment.

Maximum amount

₹30.0Cr

Typical payout

₹20.0L

Processing time

26–20 weeks

Application window

Closed. Only retroactive administrative processing is ongoing.

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Eligibility criteria

Company type: Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm
Stage: Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States: All India (nationwide)
Sectors: textile
Prerequisites: Udyam (MSME) registration required

Documents required

Certificate of Incorporation

Proof of company registration under Companies Act required for eligibility.

Tip: Obtain this from the Ministry of Corporate Affairs if not already available.

Udyam Registration

MSME registration is mandatory for scheme eligibility.

Tip: Register on the Udyam portal to obtain this document.

IEM (Industrial Entrepreneur Memorandum)

Required if applicable to the applicant's industrial category.

Tip: Check applicability based on industry type and apply through the DPIIT.

State Textile Department Registration

Proof required if registration with the state textile department is mandatory.

Tip: Consult the state textile department for specific registration procedures.

Machinery Purchase Invoice

Benchmark machinery purchase invoices showing the commercial invoice date.

Tip: Ensure invoices are detailed and retain them for subsidy applications.

Proof of Payment for Machinery

Prove that payments were made for the benchmarked machinery via bank statement or receipts.

Tip: Prepare comprehensive bank transaction records to show all payments.

Manufacturer’s Authorization Certificate

If machinery is purchased through an authorized agent or stockist, this certificate is needed.

Tip: Request an authorization letter from the manufacturer or authorized seller.

Installation Certificate

Proof that the machinery was installed or commissioned.

Tip: Have this certificate signed by the installation engineer upon completion.

Sanction Letter of Term Loan

Official term loan sanction letter from notified lending agencies.

Tip: Ensure the sanction letter includes all relevant details about the loan terms.

Proof of Disbursement of Term Loan

Proof that the term loan was disbursed can be shown via bank statements or receipts.

Tip: Keep detailed records of all loan disbursements received.

Term Loan Account Statement

A statement from the lending agency showing account activity related to the term loan.

Tip: Regularly obtain and review statements from your lender.

Declarations that Machinery is New and Unused

Declare that machinery claimed under the subsidy scheme is new and unused.

Tip: Provide a formal declaration on company letterhead.

Non-Duplication Declaration

Declaration that no benefits have been claimed under other schemes for the same machinery.

Tip: Prepare this declaration carefully to avoid future compliance issues.

Audited Financial Statements

Submit balance sheets and financial statements for the previous three fiscal years.

Tip: Ensure all financials are audited and signed by your CA.

How to apply for TUFS

Apply for ATUFS after machinery installation for joint inspection.

Submit the ATUFS application online on the iTUFS portal.Open portal

Application is forwarded for verification by different stakeholders.

Receive a Unique Identification Number (UID) for tracking.

Track the application online and opt to get updates via SMS/e-Mail.

Upon approval, the Ministry of Textiles releases the funds.

Frequently asked questions

Who is eligible for TUFS?

TUFS is available to Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across all Indian states (nationwide). Udyam (MSME) registration is required.

How much funding does TUFS provide?

TUFS provides up to ₹30.0Cr. Most applicants receive around ₹20.0L.

How long does TUFS approval take?

The typical processing time from submission to disbursement is 26–20 weeks.

Is TUFS currently accepting applications?

Yes, TUFS is currently active and accepting applications. Application window: Closed. Only retroactive administrative processing is ongoing..

Do I need Udyam registration for TUFS?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 19 May 2026. Always verify with official sources before applying.