The new integrated textile policy announced by the Tamil Nadu government last month provides support for investment in the processing, weaving and technical textile segments.
Sixteen textile associations in Tamil Nadu met Chief Minister M.K. Stalin in Chennai on Friday and thanked the State government for measures taken over the last four years for the textile sector.
According to a press release issued by the associations, the policy offers 1.6% interest subvention for all spinning machines. It also provides a 20% capital subsidy for 1,000 looms to modernise them as shuttleless looms and a 50% capital subsidy to upgrade 3,000 powerlooms as raiper shuttleless looms.
The policy includes subsidies ranging from 5% to 25% for establishing worksheds for shuttleless looms in powerloom clusters. It also offers a 25% capital investment subsidy for setting up new textile processing units and individual ETPs, along with 25% support for expansion, modernisation or upgradation of existing textile processing units and IETPs.
In addition, a 25% capital investment subsidy has been announced to set up manufacturing facilities for non-conventional fibres and yarn. The policy allocates ₹15 crore to accelerate growth and promote diversification into technical textiles, and ₹25 crore for a research and business development fund for technical textiles and manmade fibre.
The press release further noted that a 50% capital investment subsidy is available for the purchase of fully computerised cutting machines with CAD/CAM software.
The associations also referred to other measures implemented by the Tamil Nadu government, including the removal of a 1% market committee cess on seed cotton, cotton waste and cotton lint. The government has advised the Cotton Corporation of India to commence depot sale in Tamil Nadu.
Other initiatives mentioned include the implementation of the PM MITRA Park at Virudhunagar, the inclusion of machinery along with infrastructure to make the mini textile park scheme more investment friendly, and the launch of a sustainable cotton mission to increase cotton production and productivity in the State.
The government has also announced a viscose fibre production factory near Thoothukudi to strengthen the competitiveness of the Viscose Staple Fibre value chain in Tamil Nadu.