Tamil Nadu Department of Handlooms, Handicrafts, Textiles and Khadi has issued guidelines enabling spinners in the State to avail 6 per cent interest subvention to modernise spinning machines that are over 15 years old for a period of five years. In its order on December 9, the department said that ₹10 crore has been allotted for the current fiscal to implement the scheme for textile mills that want to invest and upgrade technology.
State Finance Minister Thangam Thenarasum in the budget for 2024-25 said investment in modern technologies in the spinning sector is imperative to make Tamil Nadu the leading State in the field. In pursuit of this goal, the government will introduce a special scheme for technological upgradation by providing interest subvention of 6 per cent at an estimated cost of ₹500 crore over the next 10 years.
The government order says that 60 percent of the funds will be for ring frame spinning mills; 15 per cent towards air jet/electro spinning and the remaining 25 per cent to modernise open-end spinning rotor kits. Only the machineries and spares in the spindles and the rotors having age of 15 years or more shall be eligible for benefit under the scheme, the order said.
SK Sundararaman, Chairman, Southern India Mills’ Association (SIMA), thanked the State government for announcing the unique policy, a much needed one to revive the spinning segment in the State. This has come at a time when there is a dire need to modernize the spinning units in Tamil Nadu to have a level playing field and compete with other States and globally. He has added that the modernized spinning machines would increase productivity, enhance the quality and produce yarn for high value-added fabrics, made-ups and garments.
Out of 46 million working spindles in the country, 19 million spindles are in Tamil Nadu, in which over 12 million spindles are over 15 years old, he said.
The textile industry in the country, particularly in the State, is going through a crisis due to huge incentives offered by other competing States. Market has slowed down due to poor demand and inadequate labor availability.
Fund allocation for open-end spinning and air jet/electro spinning would help these segments, which account around 70 per cent of of the viscose staple fiber yarn manufacturing and over 60 per cent of recycled yarn production and thereby the downstream sectors in Erode and Karur. regions, he said.
The Textiles and Clothing (T&C) industry is the backbone for the Tamil Nadu economy as the State accounts one-third of the country’s textile business and fetches over ₹75,000 crore export earnings.