Tamil Nadu gives 6% interest subvention for spinning machines' modernisation
This story was originally published at 20:15 IST on 13 December 2024
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MUMBAI – The Tamil Nadu government on Monday issued guidelines for textile spinners to avail 6% interest subvention for five years for the modernisation of spinning machines that are over 15 years old, according to a release by the Southern India Mills Association.
The state government, for this scheme, allocated INR 100 million immediately for the rest of 2024-25 (Apr-Mar), the release said. Of the total amount, the government has allocated 60% to ring frame modernisation, 15% for air jet spinning/electro spinning and 25% for open-end spinning modernisation.
The association had requested the state government for a policy to support the modernisation of spinning capacity. The state government had previously provided supportive measures for the weaving and processing segments of the textile industry.
The spinning sector of the textile industry had stalled the modernisation of its old machinery due to prolonged sluggishness in the market, poor export demand as a result of geopolitical issues across the globe, uncompetitive raw material prices, and unduly high logistics costs, the release said.
The textiles and clothing industry in Tamil Nadu accounts for one-third of the textile business of the country. Moreover, out of 46 million working spindles in the country, 19 million spindles are in Tamil Nadu, of which over 12 million spindles are over 15 years old.
The textile industry in the country, particularly in the state, is going through a crisis due to huge incentives offered by other competing states, market slowdown due to poor demand, and inadequate labour availability, the release quoted S.K. Sundararaman, chairman of the association, as saying. The modernised spinning machines would increase productivity, enhance the quality and produce yarn for high-value-added fabrics, made-ups and garments, he added.
Reported by Shreya Shetty
Edited by Deepshikha Bhardwaj
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