Tamil Nadu launches slew of sops for textile sector to retain numero uno status

Source: https://www.financialexpress.com

Looking to maintain its leadership position in the textile sector, the Tamil Nadu government has announced a host of incentives for the sector. The state government’s just released Integrated Textile Policy 2019 includes a 2% interest subvention for investments on technological upgrade and modernisation in existing spinning mills, increase in interest subsidy for handloom weavers, cooperative societies from 4% to 6%, scheme for free supply of power to powerloom weavers at 750 units bimonthly, and 10% credit-linked capital investment subsidy for processing the sector under the Amended Technology Upgradation Fund Scheme (ATUFS), among others.

In the new policy, the state government will extend a 2% interest subsidy for modernising spinning machines which are more than 15 years old, a 10% capital subsidy for the weaving and garment sectors for all new machines, a subsidy of up to 25% of project cost with a ceiling of Rs 10 crore for a trade facilitation centre, a 10% capital subsidy for wider width fabric processing, a 5% interest subsidy for common effluent treatment plant, a 15% capital subsidy for the individual effluent treatment plant, and a Rs 1-crore R&D assistance for effluent treatment plant, are expected to greatly benefit the entire textile sector in the state.

This apart, the state government also announced a slew of incentives for technical textiles, including a 9% capital subsidy, a 6% interest subsidy, 100% stamp duty exemption and also Rs 1-crore assistance for overseas study. The sops also include setting up of mini textile parks with 50% subsidy or Rs 2.5 crore which could help the industry grow in a big way.

In order to boost the economy in the southern districts of the state, the TN government has decided to offer a 5% additional capital subsidy for the industry to set up their operations.

An assistance will also be provided for meeting compliance costs as well as acquiring technology. A 50% subsidy or a maximum of Rs 1.5 crore for construction of labour quarters is also likely to greatly benefit the entire textile industry, said P Nataraj, chairman of Southern India Mills’ Association (Sima), India’s largest spinning mills association.

Nataraj also appreciated the setting up of mini textile parks. He said this would help the small-scale units consolidate their capacity and modernise. A sum of Rs 5 crore will also be extended for upskill of garment workers and this will greatly benefit the Tirupur cluster, he said.

According to Nataraj, the extension of 2% interest subsidy for modernising old spinning machines is also a great move. Of the 24 million spindles in the state, around 11 million are above 15 years old, he added.

Tamil Nadu was the first state to come out with a textile policy in 1998. The new comprehensive textile policy 2019 came out with unique benefits and this policy would go a long way and help the state remain No. 1 in the country when it comes to the textile sector, Nataraj said.

Categories: Asia, Business, India, Technology, Textile

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