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TUFS Scheme 2015 Pattern of Assistance

TUFS Scheme 2015 Pattern of Assistance

Under the TUFS Scheme revised in 2015 under the 12th plan period, the following types of financial assistance is provided:

  1. Stand alone spinning units – 2% Interest Reimbursement (IR) for new stand alone / replacement / modernization of spinning machinery;
  2. For units having spinning capacity with forward integration having matching capacity in weaving/ knitting/processing/garmenting – 5% Interest Reimbursement;
  3. Weaving – (i) 6% Interest Reimbursement and 15% capital subsidy on brand new shuttleless looms or 30% Margin Money Subsidy (MMS) on brand new shuttleless looms for powerloom sector;
    1. 2% Interest Reimbursement or 8% Margin Money Subsidy on second hand imported shuttleless looms with 10 years vintage and with a residual life of minimum 10 years;
    2. For 30% Margin Money Subsidy – capital ceiling caps of RS. 5 crore and subsidy cap of Rs.1.5 crore would be adhered to for encouraging adequate investments by the SSI or MSME sector;
  4. Processing – 5% Interest Reimbursement and 10% capital subsidy for specified processing machinery. Common Effluent Treatment Plant or Effluent Treatment Plant will not be considered for support under TUFS.
  5. Garmenting – 5% Interest Reimbursement and 10% capital subsidy on specified machinery for garmenting units.
  6. Technical Textiles (including non-wovens) – 5% Interest Reimbursement and 10% capital subsidy on specified machinery required in manufacture on technical textiles.
  7. Handloom and silk sector – 5% Interest Reimbursement or 30% capital subsidy on benchmarked machinery.
  8. MSMEs including jute sector – 5% Interest Reimbursement or 15% Margin Money Subsidy– subsidy ceiling to be Rs. 75 lakh.
  9. Other segments – 5% Interest Reimbursement
    1. Cotton ginning and pressing;
    2. Wool scouring; combing and carpet industry;
    3. Synthetic filament yarn texturising, crimping and twisting;
    4. Ciscose staple fibre and viscose filament yarn;
    5. Knitting and fabric embroidery;
    6. Weaving preparatory machines;
    7. Made-up manufacturing;
    8. CAD, CAM and design studio
    9. Jute industry

The interest reimbursement will be for a period of 7 years with 2 years of moratorium on implementation. Further, in addition to the interest reimbursement for investment in machinery, investments like factory buildings, pre-operative expenses and margin money for working capital are also eligible for benefit of reimbursement under the scheme (Apparel and Handloom Section Only).

TUFS Scheme 2015 Pattern of Assistance

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