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Govt's subsidy schemes to help 2.5 million ailing powerloom units

The government has launched subsidy schemes to provide financial assistance of up to 90 per cent under the Pradhan Mantri Credit Scheme for powerloom weavers. Under this scheme, the government will provide margin money subsidy of up to 20 per cent of the project cost with a ceiling of Rs 1,00,000 and interest subvention at six per cent per annum for working capital and term loan up to Rs 10,00,000 for a maximum period of five years.

The government has also introduced technology up gradation scheme, Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries (SAATHI), to help the country’s ailing powerloom segment.

Ujwal Lahoti, Chairman, Cotton Textiles Export Promotion Council (Texprocil) explains, “This initiative is expected to benefit almost 2.5 million powerloom units, which produce 57 per cent of the total cloth in the country, across India. The use of efficient equipment would result in energy savings and cost savings to the unit owner who would in turn repay in instalments to EESL (Energy Efficient Services Limited) over a three- to four-year period.”

These schemes enable powerloom units to upgrade their technology and install solar power generation equipment to cut energy costs. After repayment of bank loans in around four years, the cost of electricity for power loom units will be zero, say experts. “The Union Textile Ministry and State Governments have announced several promotional schemes for power loom textile industry, but there is hardly any awareness of the schemes in the industry. The maximum benefit of these schemes has been taken by the entrepreneurs of Gujarat and Tamil Nadu” said Kavita Gupta, Textile Commissioner while speaking on the occasion of the buyer-seller meet in Mumbai. Of the 2.5 million powerlooms, 50 per cent are in Maharashtra. There are 108 power loom clusters in the country and 72 textile parks.