Ludhiana: A massive backlog of unpaid subsidies under the Amended Technology Upgradation Fund Scheme (ATUFS) has left numerous textile units in Ludhiana in a state of financial distress. Despite investing in modern machinery between 2016 and 2022 to enhance productivity, many manufacturers continue to await the promised financial cushions from the ministry of textiles.Under the scheme’s guidelines, applicants were eligible for subsidies on loans taken for new machinery, provided that at least 50% of the machinery cost was covered by the loan. Furthermore, the equipment had to be sourced exclusively from suppliers—domestic or international—enlisted with the textile commissioner’s office. A critical stage of the process involved a physical audit by a four-member joint inspection committee (JIC).However, even after receiving a green light from the JIC, many subsidy applications are being held up by officials at the textile commission. Vinod Thapar, chairman of the Knitwear Club, noted that MSME units operate on razor-thin margins. He remarked that the years-long wait has placed these small-scale operators in an increasingly precarious financial position, as the expected relief remains out of reach.The scale of the crisis is substantial, with chartered accountant Raj Mittal, technical advisor to the Knitwear Club, estimating that the pending subsidy amount in the Ludhiana district alone totals approximately Rs 250 crore. In a bid to seek redress, over 150 unit owners from Ludhiana have registered formal complaints on the i-TUFS portal, a digital grievance platform launched by the Ministry of Textiles in December 2025.Mittal pointed out that many applications were rejected based on clauses that the industry views as lacking a clear basis. Specifically, objections were raised against manufacturers who utilized export agencies to facilitate the transit of machinery from foreign countries. He emphasized that these small enterprises took on significant debt specifically because the subsidy was available; now, without that support, they are struggling to stay afloat. When contacted for a response, textile commissioner Vrunda Manohar Desai declined to comment, stating she was not authorized to speak on the matter.
