Maharashtra will give spinning and textile mills subsidies to set up solar power plants.

Details of the proposed subsidy, the criteria to declare units eligible for subsidy and a plan for implementation are being worked out.

In the new Textile policy 2018-23, approved in February, the decision was taken to give a power subsidy of Rs 3 per unit to cooperative spinning mills for three years. Within this period of three years, the cooperative spinning mills and textile projects are expected to set up non-conventional power projects in their premises to fulfil their power needs.

The subsidy will be reviewed every year to reduce the overall burden.

One of the major reasons spinning mills incur losses is the higher power tariffs in Maharashtra compared to other states. So spinning mills are being encouraged to set up solar power plants. These, it is hoped, will reduce the power bills.

Maharashtra has a capital subsidy for upcoming self-financed projects in the state. Spinning mills, cotton ginning, processing and printing units will get a 35 per cent capital subsidy, technical textiles and composite units will be given a 30 per cent capital subsidy, and powerloom and other textile related units will get a 25 per cent capital subsidy.