Tamil Nadu govt announces Integrated Textile Policy

The state government of Tamil Nadu has announced its Integrated Textile Policy, aiming at sustainable growth of the entire textile value chain and promotion of technical textiles. The new policy, released by chief minister Edappadi K Palaniswami, also encourages setting up of the textile industry in the twelve southern districts of the state.

As per the new policy, announced after a gap of around 20 years, the state government will provide 100 per cent stamp duty exemption for technical textile projects, give 6 per cent interest subsidy for technical textile projects in addition to incentives from the Central Government, and 9 per cent of the project cost as state grant to set up technical textile parks under the Scheme for Integrated Textile Parks.

For the handloom sector, the interest subsidy extended to primary handloom weavers’ cooperative societies has been increased to 6 per cent from the existing 4 per cent and allocation for the Rebate Subsidy Scheme will be hiked to Rs 150 crore a year from the existing Rs 80 crore.

The government will also make efforts to set up silk parks in clusters such as Kancheepuram, Salem, Arni, and Thirubhuvanam.

Under the Amended Technology Upgradation Fund Scheme, the government will provide an additional 10 per cent capital subsidy to help powerloom units go in for new shuttleless looms. Also, under the PowerTex India Scheme, the government will provide subsidy for buying new preparatory machinery, and for upgradation of plain looms.

A 2 per cent interest subvention would be provided by the state government for investments in technology upgradation and modernisation in existing textile mills that have vintage period of minimum 15 years on installed machinery.

The government will conduct a detailed study on new and emerging textile products that can be exported from the state at competitive price. The study will be conducted with support of organisations like the Federation of Indian Export Organisations.

The policy offers special packages for textile industries being set up in twelve districts of southern Tamil Nadu, i.e. Kanyakumari, Tirunelveli, Thoothukudi, Virudhunagar, Ramanathapuram, Sivagangai, Madurai, Theni, Dindigul, Pudukottai, Ariyalur and Perambalur districts.

An international fair on textile industry will be held in Coimbatore, once in two years, with a financial assistance of Rs 2 crore.

The policy offers one-time assistance for energy and water conservation, and environmental compliance to the existing textile units in operation for more than three years.

The Southern India Mills’ Association has hailed the new policy as a unique one. Thanking the government for extending 2 per cent interest subsidy for modernising spinning machines of above 15 years old, SIMA chairman P Nataraj said that out of 24 million spindles in the state, around 11 million spindles are above 15 years old and this benefit would help the spinning sector to modernise the same.

Nataraj welcomed the various benefits extended for the weaving and garment sectors including 10 per cent capital subsidy for all new machines. He appreciated the announcement of 25 per cent of the project cost with the ceiling of Rs 10 crore for trade facilitation centre. He stated that 10 per cent capital subsidy for wider width fabric processing, 5 per cent interest subsidy for common effluent treatment plant, 15 per cent capital subsidy for the individual effluent treatment plant, and Rs 1 crore R&D assistance for effluent treatment plant would greatly benefit the processing segments in Tamil Nadu.

SIMA chairman appreciated the slew of incentives offered for technical textiles including 9 per cent capital subsidy, 6 per cent interest subsidy, 100 per cent stamp duty exemption and also providing Rs 1 crore assistance for overseas study.
He also appreciated the incentives offered for setting up the mini textile parks by extending 50 per cent subsidy or Rs 2.5 crore per park. “This would help the small-scale units to consolidate the capacity and modernise,” Nataraj said.

“The assistance provided for meeting compliance cost and acquiring technology would help Tamil Nadu textile industry in a big way.  50 per cent subsidy subject to maximum of Rs 1.5 crore for construction of labour quarters would greatly benefit the entire textile industry. Rs 5 crore assistance extended for upskilling of garment workers would greatly benefit the Tiruppur cluster,” he added.