WE ARE THE TOP LEADING TECHNOLOGY UPGRADATION FUND SCHEME CONSULTANT IN HYDERABAD

Objective:

  • Creating employment in Textile Industry and boosting the exports through “MAKE IN INDIA” concept.

  • Promoting the conversion of existing looms to better technology looms for improvement in quality and productivity.

 

Technical Textile:

Textile materials and products used primarily for their technical performance & functional properties and it includes Agrotextiles, Meditex, Mobiltex, Packtex, Sportex, Buildtex, clothtex, Hometex, Protex, Geotex, Oekotex and Indutex etc.

 

Capital Investment Subsidy (CIS):

The subsidy at the prescribed rate on credit linked capital investment to an entity engaged in textile sector on technology upgradation which will be determined on the basic cost of the specified machinery after its installation and commissioning.

Basic cost: Cost of machinery excluding taxes, duties and any other charges.

Eligible Sectors for Subsidy:

Subsidy is available for following segments

  • Weaving, Weaving Preparatory and Knitting

  • Processing of fibers, yarns, fabrics, garments & made ups

  • Technical Textile

  • Garment / made-up manufacturing

  • Handloom Sector

  • Silk Sector

  • Jute Sector

Pattern of Assistance: 

Credit Linked Capital Subsidy – In Single Instalment (Nature of Subsidy)

     
     Sl No
                                                 
                         Eligible Components
               
              Subsidy

        1

For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups

   Note:

   · Standalone Embroidery units are also eligible @15%

   · Loan sanction date is on or after 27.02.2021)
             (For Standalone Embroidery units)

15% on Eligible Machinery

Max. up to Rs. 30 Crore

          2

Weaving for brand new Shuttle-less Looms (including weaving preparatory & knitting), Processing, Jute, Silk and Handloom

10% on Eligible Machinery

Max. up to Rs. 20 Crore

          3

For Composite unit / Multiple Segments:

    Condition:

If the Eligible Capital Investment of Garmenting & Technical Textile category is

  
 

         More than 50% of the eligible project cost

15% on Eligible Machinery Max. up to Rs. 30 Crore

         Less than 50% of the eligible project cost

10% on Eligible Machinery Max. up to Rs. 20 Crore

Note:

If entity had already availed subsidy (earlier under RRTUFs) will be eligible for subsidy to the extent of “Balance Amount of Subsidy within the overall Ceiling”.

Eligibility Criteria:

    Sl No

                                                                                     Details

     1

For Machineries

Specifications of technology (Machinery) – As per TAMC only

Ø   Second hand machinery will not be eligible for subsidy

Ø   Machinery shall be purchased directly from the Original Equipment manufacturer (OEM) / his authorized agent

Ø   Accessories /spares – Allowed 20% of Basic Cost of Machinery

Ø   Purchase of Machinery should be on or after the date of sanction of the term loan only.

Ø   Technology lower than the specifications prescribed by the TAMC is not eligible for Subsidy

Ø   Advance payment – Should not be paid to any suppliers prior to the date of sanction of the Term Loan. (If paid, allowed up to the limit of Promoter Contribution)

     2

For Term Loan

Multiple finance for a Project is not allowed

Ø   Minimum TL – 50% of Total Eligible Machinery Cost

Ø   Repayment Period – Minimum 3 years (For MSMEs), 5 Years (Others)                                               

Ø  Note: Units shall function at least during repayment period

Ø   Foreign currency loan – eligible (overseas branch of the Indian bank/ Foreign bank having Indian branch)

Ø  Note: But loan account should be operational from the Indian branch.

Ø   Transfer of loan – Allowed – But Portfolio should be remains same

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