Maharashtra textile sector to get power tariff concessions

The textile industry in Maharashtra is set to get ₹370 crore concessions in power tariff. The step will help in revival of sick textile mills and generate jobs, chief minister Devendra Fadnavis said at a review meeting of textile department officials in Mumbai.

He also asked officials to provide interest and capital grants to the industry in the state.

Fadnavis also directed officials to sell the land belonging to the Maharashtra State Textile Corporation, which is struggling financially, a news agency reported. He directed that the proceeds of the sale should be transferred to the textile department.

Power tariffs in Maharashtra are higher than that in the other states and this is one of the reason why spinning mills incur losses. To address this issue, the Maharashtra textile department is also encouraging mills to turn to solar power plants to fulfil their power needs while reducing their bills.

As per the new textile policy 2018-23 that was approved in February by the state government, ₹3 per unit power subsidy is given to spinning mills for a period of 3 years.

The subsidy is also being given to other textiles projects. Further, cooperative spinning mills and textile projects are encouraged to set up other power projects as complementary power sources.