The policy, detailed in G.O.(Ms) No.166 dated 09.12.2024, offers five years of interest subvention to address industry challenges like outdated spindles, market sluggishness, and high logistics costs. The southern Indian state houses 19 million spindles, of which over 12 million are outdated, i.e., they are more than 15 years old.
The textile industry in southern Indian state of Tamil Nadu, which contributes ₹75,000 crore in exports, will benefit from a new 6 per cent interest subsidy for modernising spinning machinery that is over 15 years old.
With ₹10 crore allocated for FY 2024-25, the scheme aims to boost productivity, quality, and competitiveness, supporting sectors like VSF and recycled yarn production.
The state government has allocated ₹10 crore (~$1.2 million) for FY 2024-25, with 60 per cent for ring frame modernisation, 15 per cent for air jet/electro spinning, and 25 per cent for open-end spinning, supporting key segments like VSF and recycled yarn production. This move is expected to revitalise Tamil Nadu’s spinning sector and benefit downstream industries in Erode and Karur, according to the Southern India Mills’ Association (SIMA).
SIMA chairman Dr. SK Sundararaman thanked Chief Minister MK Stalin and Minister for Handlooms & Textiles R Gandhi for the timely initiative, citing the need for modernisation to boost productivity, quality, and competitiveness.
Fibre2Fashion News Desk (RKS)
