India: 250Rs+ Crore ATUFS Subsidies Stuck, Ludhiana Textiles Under Stress

Textile and knitwear units in Ludhiana are under severe financial stress as ₹250+ crore (US$27.65 million) in subsidies under ATUFS remain blocked due to documentation issues linked to imported machinery.

Several subsidy claims have been pending with the Ministry of Textiles for up to 6 years, making it difficult for units to service bank loans taken for technology upgrades.

Over 150 textile mill owners in Ludhiana have filed grievances on the i-TUFS portal (launched Dec 2025), while 564 applications have been submitted nationwide.

ATUFS (Feb 2016 – 31 March 2022) supported bank-financed imported machinery, but many claims were rejected on technical grounds without clear explanations.

The textile commissioner has assured early resolution of pending cases, as industry warns further delays could hurt MSMEs, employment, and future investment in the region.