With 47% of the nation’s spinning capacity, 36% of its open-end spinning capacity, 60% of its yarn exports, and 20% of its total textile activity, the Textiles and Clothing (T&C) sector is the backbone of the Tamil Nadu economy. 80% of the spinning machinery and 75% of the spinning machinery spares and accessories manufacturing capacity, 12% of the powerloom capacity, 70% of the knitted garment manufacturing capacity, 20% of TUF investments, and more than Rs. 75,000 crores in export revenue are generated.
Tamil Nadu is home to 19 million of the nation’s 46 million operational spindles, of which more over 12 million are above the age of 15. The modernisation of the spinning industry’s production plant has been delayed because of extended market slowness, low export demand brought on by global geopolitical concerns, uncompetitive raw material prices, excessively expensive transport costs, etc.
In light of this, SIMA, speaking for the State’s textile sector, asked the Tamil Nadu government to declare a policy that would only encourage the modernisation of spinning capacity, as the government is currently supplying the weaving and processing sectors with helpful measures.
Through its G.O.(Ms) No.166 dated 09.12.2024, the Department of Handlooms, Handicrafts, Textiles, and Khadi, Government of Tamil Nadu, has now released the rules allowing the spinners to get a 6% interest subvention for the updating spinning machines that are more than 15 years old for a five-year term.
In a press release released today, Dr. S. K. Sundararaman, Chairman of SIMA, expressed gratitude to Thiru. M. K. Stalin, the Hon. Chief Minister of Tamil Nadu, and Thiru. R. Gandhi, the Hon. Minister for Handlooms & Textiles, for announcing the distinctive policy that is desperately needed to bring the state’s spinning section back to life. According to him, the nation’s textile industry—especially in the State—is experiencing a crisis as a result of the enormous incentives provided by rival States, a slowdown in the market brought on by low demand, a shortage of labour, etc. Additionally, he said that the government’s policy assistance coincides with the urgent need to modernise Tamil Nadu’s spinning units in order to provide an even playing field. and contend both domestically and internationally. Modernised spinning machines, he continued, will boost output, improve quality, and provide yarn for high-value textiles, cosmetics, and clothing.
The government’s prompt allocation of Rs. 10 crores for the remainder of FY 2024–2025 has been praised by the SIMA Chairman. He also praised the government for spending 15% on air jets and 60% on ring frame modernisation.
25% of the overall scheme budget goes for open-end spinning modernisation, while the remaining 25% goes towards spinning/electro spinning. According to him, funding for air jet/electro spinning and open-end spinning would benefit these industries, which make up around 70% of the manufacture of VSF yarn, more than 60% of recycled yarn, and consequently the downstream industries in the regions of Erode and Karur.