• New units and existing units with or without expansion of capacity.
• Existing units can modernise their Technology and / or expand their capacity with the State of the art Technology
• New units must set up the entire facilities only with the appropriate eligible technology.
• A unit can undertake one or more activities listed in an integral manner by way of forward or backward integration.

3.Eligible Assets

Type of Units

• New units and existing units with or without expansion
• Existing units can modernise and/or expand with the state-of-the-art technology.
• New units must set up their entire facilities only with the appropriate eligible technology.
• A unit can undertake one or more activities listed at item 2 ( Scope of the scheme) above. However, multiple actitivities can be undertaken only in an intergal manner, i.e. by way of forward or backward integration. It is, however,clarified that weaving/knitting and garment manufacturing or weaving/knitting and processing or garment manufacturing and processing will be considered as intergral activities.

• Under the RTUF Scheme, generally only new machinery will be permitted.
• However, in the case of the following machinery with a minimum residual life of 10 years, import of second hand machinery by the eligible applicant unit will be permitted subject to maximum expired life (vintage) of 10 years as reckoned from the year of manufacture.
• Projectile shuttleless loom
• Machinery for jute softening & carding, drawing, spinning and weaving.
• Autoconer.
• Rapier shuttle less loom.
• Worsted Card.
• High speed inter-setting/Gill box/Chain Gills/Rotary gills/Vertical Gill Box
• Drawing Set/Roving frame/Rubbing frame for worsted system.
• Ring Frames for worsted system
•  Rectilinear Combers for worsted system.
• Ring Frames with siro spinning attachment with or without auto doffers for worsted system.
• A certificate for the vintage and residual life of the imported second hand machinery must be furnished to the lending agency at the appropriate time as determined by the lending agency. Any of the agencies specified in Appendix-32A of the Hand book of procedures (volume 1) of EXIM Policy 1997-2002 ( as amended from time to time) can give such a certificate. Such a certificate is compulsory for any import of eligible second hand machinery under this scheme irrespective of the value of such import. A certificate from the Textile Commissioner will also be necessary to the effect that the equipment is not indigenously available.
• Balancing equipment or equipment required for de-bottlenecking the production process will also be eligible for funding under RTUF.
• Waste reduction equipment or devices will be eligible for funding under RTUF
• Eligibility of any other textile machinery equal to or higher than the bench marked technology not listed in the annexures or developed in the course of the operation of RTUF will be, suo motu or on reference, specifically determined by the Technical Advisory Committee to be constituted by Government.
• The size of the technologically upgraded facilities of an existing unit or size of the new unit must be of minimum economic size.

• The following investments will also be eligible to the extent necessary for the plant and equipment to be installed for Technology Upgradation and the total of such investments will not normally exceed 25% of the total investment in such plant and machinery:
• Land and factory building including renovation of factory building and electrical installations.
• Energy saving devices.
• Effluent treatment plant (ETP)
• Water treatment plant for captive industrial use.
• Captive power generation.
• Investments in a installation of the following facilities including necessary equipment:
• In-house R & D including designs studio.
• Information Technology including ERP
• Total quality management including adoption of appropriate ISO/BIS standards.
• Investment in the acquisition of technical know-how. Lending in excess of the limits prescribed above in respect of these items will attract the normal lending rates. Investments in common infrastructure or facilities by an industry Association,trust or co-operative society in an industrial cluster or estate Investments in common infrastructure facilities owned by the association,trust or co-operative society of the units participating in the RTUF scheme,to the extent necessary for this purpose, including the following:
• Common utilities, viz, water supply, power substation, etc.
• Common captive power generation
• Common effluent treatment plant.
  Any additional investments would attract the normal lending rates.