The Government of India is operating Technology Upgradation Fund Scheme for Textile and Jute Industries (operational till 31st March 2007) for upgrading the technology and modernising the production facilities in the textile units. Under the scheme an interest subsidy of 5% is given by Government of India. The subsidy will be reimbursed by TIIC to the units every quarter as and when received from the Government of India.

Textile units eligible under RTUF Schemes can either opt for the above interest subsidy of 5% or alternatively for the 12% Credit Linked Capital Subsidy under the Credit Linked Capital Subsidy Scheme (CLCSS) of Government of India.

The Scheme will cover assistance for purchase of Capital goods / equipment including energy saving systems by existing units with good track record, for expansion / balancing / replacement / modernisation.                                                              

The objective of the scheme is to promote quality management systems in SSI units with a view to strengthening their marketing and export capabilities. The units availing assistance under the scheme and acquiring ISO Certification would be eligible for being considered for Government of India incentive/subsidy of 75% of the cost of acquisition of the certification upto a maximum of Rs.75,000/- subject to the provisions of the scheme of DC (SSI), Government of India.                                                                        

The scheme aims at financing the SSI units with whom purchase orders have been issued by TNEB for the supply of ACSR conductors / AAAC conductors / distribution transformers / power transformers / cables against supply bills to TNEB.