Circular No.ES/263 /2016-17 January 12, 2017
To: Members of the Council
Sub: Resolution dt.10/01/2017 for providing on additional subsidy of 10% Capital Investment Subsidy for made-ups units under ATUFS
Dear Member,
The Council is glad to inform you that the Ministry of Textiles has notified vide Resolution No. 6/18/2016- TUFS dated 10.01.2017 a “Scheme for providing on additional subsidy of 10% Capital Investment Subsidy for made-ups units under ATUFS”. The Amended Technology Upgradation Fund Scheme (ATUFS) was notified vide Resolution No. 6/5/2015- TUFS dated 13.01.2016. The Guidelines of ATUFS have been issued vide Resolution No. 6/5/2015- TUFS dated 29.02.2016. Financial and operational parameters and implementation mechanism for ATUFS during its implementation period from 13.01.2016 to 31.03.2022 are laid down in the said Guidelines.
The Ministry notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garmenting sector vide Resolution of even number dated 25th July, 2016. Under SPELSGU, the additional incentive of 10% will be provided to the garmenting units which would be availing the 15% Capital Investment Subsidy (CIS) under ATUFS for the installation of benchmarked eligible machinery. The cap on capital investment subsidy for the eligible machines in their garmenting units has, therefore, been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10% will be on achievement of the projected production and employment generation, as stated by the unit in the Detailed Project Report (DPR). The SPELSGU had come into effect from 13.01.2016 till 31.03.2019.
The Government has further approved reforms inter alia to boost Employment Generation and Exports in the Made- ups sector to provide production incentive through enhanced TUFS subsidy for made- ups similar to what is provided to garmenting unit based on additional production and employment under SPELSGU. An additional subsidy of 10% will also be provided to the Made- ups units enhancing the cap to Rs. 50 crore on the lines of SPELSGU under ATUFS based on achievement of the projected production and employment as given in the Detailed Project Report (DPR). The additional subsidy will be disbursed after a period of three years. This will be based on a verification mechanism linked to production volume, employment and turnover. This Scheme will come into effect from 13.01.2016 till 31.03.2019.
It may be mentioned that the objective of this resolution is to boost employment generation and exports in the made- ups sector, the Government would provide an additional 10% Capital Investment Subsidy (CIS) for made- ups units who have availed 15% CIS benefit under ATUFS based on the achievement of projected production and employment after a period of 3 years. The period of 3 years will be counted from the date of release of ATUFS subsidy to the unit.
Members are requested to make note of the above.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
