The Amended Technology Upgradation Fund Scheme (ATUFS)

THE OFFICE OF THE TEXTILE COMMISSIONER, MINISTRY OF TEXTILES, GOVERNMENT OF INDIA

Circular F.No. 12(1)/A-TUFS/Policy/2019/TUFS/71 Date:22.01.2020

Sub : Modification in Para 5.4 of the revised guidelines

In pursuance of Order No. 16015/1/2019-TUFS dated 26th Nov 2019 and subsequent O.M. TS-16015/1/2019-TUFS dated 4th January, 2021 of Ministry of Textiles, the following modification in the revised guidelines of ATUFS notified vide Revised Resolution No. 6/5/2015-TUFS dated 2nd August, 2018 has been made:

Para in Revised Guidelines: 5.4

Revised Provision

The minimum repayment period of the term loan sanctioned for availing the benefit of the scheme shall not be for less than three years including moratorium period.

Cutoff date to be made applicable

The provision will be applicable on all the cases in which loan has been sanctioned on or after 26th November, 2020.

Operation guidelines for release of subsidy against Bank Guarantee under ATUFS

The O/o Textile Commissioner, Ministry of Textiles had issued Circular No.12(1)/ATUFS/Policy/2019/TUFS/Del. of Fin Prs/ dated 11/05/2020 on the above subject.

Ministry of Textiles vide Order No.6/5/215-TUFS dated 13th April, 2020 had notified the modifications in the Revised Resolution for ATUFS dated 02.08.2018 by inserting the following at the end of para 10.5.2:

‘Entities can exercise an option for getting the JIT recommended subsidy released prior to scrutiny of the JIT reports by respective authorities as per delegated powers, subject to submission of Bank Guarantee (BG) equivalent to recommended subsidy. BG should be equivalent to the amount of subsidy recommended by the JIT in its report. The BG should be valid for one year (to be submitted within a month of its issue by bank) and extendable further, if required. Subsequently, the BG will be forfeited to the extent of excess payment made along with penal interest as applicable under the rules, in case the eligible subsidy amount approved for release after scrutiny of JIT report by respective authority works out to be lower than the amount recommended by the JIT’.

In pursuance of the above, Textile Commissioner vide Circular No.12(1)/ATUFS/ Policy/2019/ Del.of Fin Prs dated 14th April 2020 has operationalized a window in iTUFS portal till 25 April 2020 facilitating units to submit their willingness to get subsidy released against Bank Guarantee. The units which have submitted their option in iTUFS portal/ through email for release of subsidy against Bank Guarantee will require to submit BG equivalent to the subsidy amount recommended in JIT report by 12th October 2020 i.e., within six months from the date of issue of the Ministry of Textiles’ Order No.6/5/215-TUFS dated 13th April 2020.

The detailed procedure to be followed for release of subsidy against Bank Guarantee under ATUFS is given below:

The units which have exercised the option for getting released the JIT recommended subsidy are required to submit a Bank Guarantee for 90% of the amount of subsidy recommended by JIT. Considering the percentage of rejection of subsidy claims under ATUFS post JIT, owing to deficiencies in the claims and various other discrepancies including procurement of below benchmarked machinery etc., observed during verification, examination of JIT reports by respective authorities, 80% of the JIT recommended subsidy will be released to the units. Upon verification and final settlement of the claim, necessary adjustments will be carried out in terms of the provisions of para 3(xii) & 3 (xiii) of this Circular.

The BG should be valid for 12 months and extendable further, if required. BG should be issued in favour of The Textile Commissioner, Mumbai by the same bank and branch from which the Term Loan has been sanctioned submitted in the prescribed format (enclosed). In case of consortium finance, BG in prescribed format to be issued by any one of the multiple lending agencies which have sanctioned loan for the project along with No Objection letter from the remaining lenders.

A copy of the BG should be uploaded by the unit on i-TUFS through a dedicated link for the purpose which will be made available shortly. All details related to the BG such as date of issue and expiry, amount and machineries purchased from enlisted manufactures or not, requisite pre-receipt payments/documents in PFMS etc. should be duly filled in/uploaded while submitting the copy online.

The hard copy of Bank Guarantee should be submitted by the unit to the Regional Office (RO) which has conducted the joint inspection. The BG may be accepted by the RO after cross verification with the copy uploaded online and matching details entered by the unit thereof. Upon acceptance, the RO will upload attested copy of BG in i-TUFS. ROs will also get the authenticity of the BG verified from the respective banks prior to consideration of the claims to release of subsidy against BG. The RO will be safe custodian of all BGs (irrespective of the authority as per the delegation of financial power submitted online and /physically by the units to them. ROS situated in containment Zones Municipal Corporations/Cities declared as “Red Zone’ as per the instructions of Central State Government in view of COVID-19 outbreak, for submission of BG by the units to such ROs will be notified separately.

Based on the JIT report, attested copy of BG uploaded online and submission of pre receipt payments/documents in PFMS, approval for release of 80% of the JIT recommended subsidy against the BG already submitted, will be accorded by the Competent Authority, as per the delegation of powers, subject to enlistment of manufacturer.

In case the units want to withdraw the option exercised even after submission of BG but prior to approval for release of subsidy by the competent authority, such units will have to submit an online request through iTUFS portal so as to consider and returning of the BG to the units.

Manufacturers which are not enlisted may be done by the Internal Technical Committee and notified by TAMC on fast track basis. FIFO for release of such claims will be the date of physical inspection by JIT and date of uploading of attested copy of the bank guarantee by the RO.

Challans for such claims will be created based on approval accorded by the Competent Authority.

Post release of subsidy against BG, the claim (i.e., JIT report) will be processed on FIFO as per the date of physical inspection by JIT.

If the amount of eligible subsidy is found to be higher than subsidy released against BG during regular scrutiny by Competent Authority, the difference will be released to the unit.

In the scenario of eligible subsidy being lower, the unit may explore the option of refund of the amount to the extent of excess payment and penal interest @ 10% p.a. (computed as simple interest on excess amount released from the day of release of subsidy) within a fortnight of communication of refund order, otherwise the authority will forfeit the BG. If the BG does not cover the excess amount (including penal interest), further recovery will be made from the unit in addition to forfeiting the entire BG.

If unit is unable to refund the requisite amount within 3 months from date of issue of refund order, the entity will be blacklisted from availing benefits from Schemes of Government of India.

Status of JIT Details as per Regional Office of Textile Commissioner as on 14th February 2021

The applicants can refer to the lists to find their ATUFS status and make follow-up suitably with their respective Regional Office of the Textile Commissioner.

List Of Units whose claim details under ATUFS has been rejected

THE OFFICE OF THE TEXTILE COMMISSIONER

HEAD QUARTERS

Nishta Bhavan, New CGO Bldg. 48, New Marine Lines, Mumbai – 400 020,
Tel. No. 22001050, Fax No. 022-22004693 )

REGIONAL OFFICES