Lok Sabha Question No. 254 (STARRED), answered on 2023-12-20
Subject: ATUFS for MSMEs
Ministry: TEXTILES
Asked by: Khagen Murmu

## LOK SABHA STARRED QUESTION NO. *254 TO BE ANSWERED ON 20.12.2023

## ATUFS FOR MSMES

## *254.  SHRI KHAGEN MURMU:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a) the details of steps taken by the Government to enhance the accessibility of Amended Technology Upgradation Fund Scheme (ATUFS) for Micro, Small & Medium Enterprises (MSMEs) including any specialised support or incentives offered to encourage their involvement;
- (b)  the  alignment  of  this  initiative  with  the  Government's  broader  goals  of  empowering  small-  scale textile businesses;
- (c) whether there are any forthcoming initiatives or programs aimed at maximising the advantages of ATUFS  for  MSMEs,  encouraging  innovation  and  guaranteeing  a  fair  playing  field  for  smaller participants in the textile industry; and
- (d) if so, the details thereof?

उत्तर ANSWER )

## वस्त्र मंत्री ( श्री पीयूष गोयल

MINISTER OF TEXTILES (SHRI PIYUSH GOYAL)

- (a) to (d):A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. *254 FOR 20.12.2023 REGARDING ATUFS for MSMEs ASKED BY SHRI KHAGEN MURMU, M.P.

(a) to (b): Ministry of Textiles, in alignment with the Government's broader goals of empowering small-scale  businesses  in  textile  sector,  had  taken  following  major  policy  changes  while  launching ATUFS  in  January,  2016,  to  enhance  the  accessibility  of  the  scheme  to  Micro,  Small  &  Medium Enterprises (MSMEs) textile units:

-  Higher  rate  of  capital  investment  subsidy  was  provided  for  high  employment  potential  segment (15% Capital Investment Subsidy to garmenting sector majority of whom are MSMEs & Technical Textile segments).
-  Upper ceilings of capital investment subsidy of Rs. 30 crore for Garmenting, Technical Textiles and Rs.20 crore for other segments have been prescribed to enhance the scope of availing benefit for a large number of smaller units.

(c) to (d): ATUFS was approved for a period upto 31.03.2022. As a result of the specific policy initiatives under ATUFS, the penetration of scheme across MSMEs has improved significantly. Out of total 14,389 applications registered under ATUFS till closure of registration of subsidy applications in the portal i.e. 31.03.2022, 12,986 applications (about 90%) pertained to MSMEs. ATUFS incentivized textile  industry  including  MSMEs,  to  upgrade  manufacturing  technology  by  installing  benchmarked machinery with latest technology and encouraged innovation, thus improving productivity and quality. Additionally, the following initiatives have also been taken for streamlining the procedure for availing the due subsidy by industry including MSMEs and speedy disposal of claims under the scheme:

-  With a view to reduce compliance burden, scheme guidelines have been simplified and issued on 02.08.2018
-  Adequate financial delegation has been given to Office of Textile Commissioner for release of subsidy upto the value of Rs. 5 crore.
-  iTUFS portal- End to end digital solution operationalized to improve efficient implementation and improved transparency.
-  Outreach camps are organized in major textile clusters, including MSME clusters, for speedy settlement of claims.

With a view to improve the global competitiveness of Indian textile industry and for providing a level playing field, including for small scale investors, Ministry is implementing Production Linked Incentive (PLI)  Scheme  for  textile  focussing  on  MMF  Fabric,  MMF  Apparel  and  Technical  Textiles  and  the Prime Minister Mega Integrated Textile Regions and Apparel (PM-MITRA) Parks Scheme.

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