Tamil Nadu government offers a range of sops for the textile industry

A host of sops were recently announced by the Tamil Nadu government for the textile industry to retain its leading position in the sector. The Integrated Textile Policy 2019 that was released by the state government recently, has a 2 per cent interest subvention for investments on technological upgrade and modernisation in existing spinning mills. Besides, it has a raised interest subsidy for cooperative societies from 4 per cent to 6 percent and also an increase in subsidy for handloom weavers. It also includes free supply of power to powerloom weavers at 750 units bimonthly, and 10 per cent credit-linked capital investment subsidy for processing the sector under the Amended Technology Upgradation Fund Scheme (ATUFS), and other sops as well.

According to the new policy, a 2 per cent interest subsidy will be given to modernising those spinning machines that are more than 15 years old, for a trade facilitation centre ,a subsidy of up to 25 per cent of project cost with a ceiling of INR 10 crore,  a 10 per cent capital subsidy for the weaving and garment sectors for all new machines, a 10 per cent capital subsidy for wider width fabric processing, a 15 per cent capital subsidy for the individual effluent treatment plant, a 5 per cent interest subsidy for common effluent treatment plant, and an INR 1-crore R&D assistance for effluent treatment plant. All these would benefit the entire textile segment of the state hugely.

Besides, the government also announced a range of sops for technical textiles that include a 9 per cent capital subsidy, a 6 per cent interest subsidy, a 100 per cent stamp duty exemption, and an assistance of INR 1 crore for overseas study. Moreover, there would be mini textile parks set up with a 50 per cent subsidy or INR 2.5 crore. All these would help the textile segment of the state grow greatly.  The Tamil Nadu state government also decided to offer a 5 per cent additional capital subsidy for the sector to set up their operations so that the economy in the southern districts would get a boost.

Mr P Nataraj, Chairman of Southern India Mills' Association (Sima), India's largest spinning mills association, there will be assistance to meet compliance costs and to acquire technology as well. For construction of labour quarters there is likely to be a 50 per cent subsidy or a maximum of INR 1.5 crore, to benefit the sector.

Related Articles
Leave a Comment