Out of the total settlements under the Amended Technology Upgradation Fund Scheme (ATUFS) since inception, about 61 per cent of claims were settled during the peak of the pandemic period i.e. in fiscal 2020-21. The Amended Technology Upgradation Fund Scheme (ATUFS) was intended to boost Indian textile industry by enabling ease of doing business, bolstering exports and fuelling employment.
Among the significant decisions to resolve pending issues and the way forward includes reduction of compliance burden by accepting only a single certificate from the concerned bank instead of multiple documents regarding evidence of payment for claimed machineries. Garment exporters have appreciated the simplification of cumbersome steps. Now they also expect refunds on time. Sometimes refunds are not cleared up to two or three years. The modalities for enlistment of machinery manufacturers and accessories/spare parts manufacturers will be simplified. Despite hindrances during the pandemic, serious efforts were put into resolving policy constraints and settlement of claims. A special measure has been introduced to ease the liquidity flow in industry by introducing an option for getting part subsidy released against bank guarantees.
The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 as a credit linked subsidy scheme intended for modernization and technology upgradation of the Indian textile industry, promoting ease of doing business, generating employment and promoting exports. Since then, the scheme has been implemented in different versions.