Business

Southern India Mills Association Welcomes Textile Ministry’s Power Tex India Scheme

Southern India Mills Association (SIMA) Chairman M Senthilkumar has issued a statement thanking Union Textile Minister Smriti Irani for launching Power Tex India Scheme and considering most of the proposals put forth by the power loom sector. He stated that the power loom sector has been facing numerous challenges due to sluggish global and domestic market conditions. Though loom capacity increased by 12% in the last seven years, fabric production increased only by 2.4% during the last seven years.

The scheme would greatly benefit the power loom sector to improve its competitiveness in the global market and also enable it supply quality fabrics at a competitive rate to the garmenting and made-ups sector, he said. He praised the solar power plant scheme which gives 50% to 90% subsidy with a lower cap for power looms connected to the grid and higher benefit for power looms which go off the grid.

This would give great relief to states, especially Maharashtra and Tamil Nadu which account for more than 75% of power looms in the country, to reduce power subsidy commitment as well as enable the sector to be self-reliant, he said. He also applauded the Pradhan Manthri Credit Scheme for power loom weavers which would provide 20% margin money with a ceiling of Rs 1 lakh and an interest subvention at the rate of six per cent, both for working capital as well as a term loan up to Rs 10 lakh for a maximum period of five years.

Praising the assistance given to women entrepreneurs under the Stand Up India Scheme by providing 25% margin money subsidy with a ceiling of Rs 25 lakh, he lauded the Texventure Capital Fund Scheme, where financial assistance is provided up to Rs 3 crore invested under the SIDBI Venture Capital Fund Scheme. He urged all power loom weavers to fully utilise various benefits announced under the Power Tex India Scheme, meet fabric demands of downstream sectors and remain globally competitive.