Power loom weavers in Surat demand scheme for MMF sector

Power loom weavers in India’s largest man-made fabric (MMF) hub Surat have urged the Gujarat state government to launch a textile promotion scheme following Maharashtra and provide an impetus package, slash electricity tariff and modernize weaving units to raise quality of fabrics. They have written letters to the chief minister and other elected representatives.

As the Maharashtra state government is providing a 25 per cent capital subsidy with no cap on investment made in the textile sector, that will encourage textile entrepreneurs in setting up power loom weaving units in that state, thereby offering stiff competition to the MMF industry in Surat, a report in a top Indian English-language newspaper said quoting the Surat weavers.

The textile units in Maharashtra have been given an impetus package to the tune of Rs 4,600 crore and the electricity tariff reduced by Rs 2 per unit. This will encourage even entrepreneurs from Surat to set up units in Maharashtra as the fabric manufactured there will be 40 per cent cheaper, the power loom weavers believe.

The goods and service tax and demonetisation has broken the back of the power loom sector, with many weavers shutting down their units and more than a lakh conventional power loom machines sold in scrap in the last few months, said power loom industry leader Sachin Mayur Golwala.