₹12 crore modernisation plan to upgrade spinning mills and install a captive power mill
The Tamil Nadu government will modernise its six textile mills at a cost of ₹12 crore, Minister for Handlooms, Textiles, and Khadi Vijay Balaji said. The plan also includes installing a wind mill for captive power consumption, taking the estimated total project cost to ₹20 crore.
The Minister shared the details during a visit to the Co-optex outlets, Kurichi SIDCO Industrial Estate, and its textile mill in Coimbatore, according to a report published by The Hindu on September 6, 2026.
Six Spinning Mills to Undergo Modernisation
The proposed ₹12-crore investment will cover the modernisation of six spinning mills operated by the Tamil Nadu government.
The mills are expected to provide employment opportunities for local youth and produce yarn that can be used for the government’s free dhoti and saree scheme.
The project will also include a wind mill for captive power consumption, taking the overall estimated project cost to ₹20 crore.
Government Focuses on Handloom Product Promotion
Mr. Balaji said there is a need to showcase, promote, and create a niche market for the handwoven products of the State.
The government is looking at various measures to support weavers, he added.
10% Dearness Allowance Hike Under Free Dhoti and Saree Scheme
Regarding the free dhoti and saree scheme, Mr. Balaji said handloom weavers involved in the scheme would receive a 10% hike in dearness allowance and wages.
“I am talking to the officials to increase the wages for the weavers in the powerloom sector too. There are some powerloom societies that are dependent on this scheme. Further, more than 80% of the saris and dhotis for the scheme is supplied by the powerloom sector. If the weavers are given their due wages, they will ensure supply of quality products,” he added.
Powerloom Sector Linked to Government Scheme
According to Mr. Balaji, more than 80% of the saris and dhotis supplied under the government scheme come from the powerloom sector.
The government is also considering measures related to wages and support for weavers associated with the scheme.