Tamilnadu New Integrated Textile Policy 2019

The Tamilnadu State Government has introduced the New Integrated Textile Policy 2019. The policy aims at maintaining the growth of the textile value chain and to promote the technical textiles. The policy provides support to the southern districts to develop the textile industry. Higher Incentives or subsidies are provided to different sectors in the Textile Industry through this policy.

Objectives

Maintain the growth and position of the textile industry.
Encourage the production and productivity of cotton in the state.
Achieve growth in the textiles by shifting from the fibre to fashion.
Build world-class technology in association with social and environmental standards.
Create the best sectors in various fields of the textile industry, to produce high-quality products meeting with the requirements of the export and domestic sector.
Encourage industries to focus on diversification, innovation and value addition.
Increase the shares of the textiles export.
Promote and support the technical textile in the areas of technology, production and research and development.
Create employment opportunities.

Area of Focus

The policy focuses on the following areas:

Sustain and preserve the traditional handloom sector and also the artistry of the weavers.
Develop an environment-friendly processing sector and capacity building.
Develop the knitting and garment sectors.
Promote technical textiles.
Develop the textile industries harmoniously and holistically.

Incentives for various Sectors

Spinning Sector

To the extent of 2% interest subvention would be given to the spinning mills, invested on the technology modernisation and upgradation. The interest would be granted on the machinery that a minimum of 15 years from the date of installation.

Handloom Sector

The following facilities are offered by the Tamilnadu Government to the handloom sector:

Supply of electricity at the rate of 200 unit per month would be provided to the households of the handloom weavers.
To encourage weavers, the state government contributes 8 paise per rupee for the wage they have earned.
The family of the co-operative handloom weaver, who was deceased before 60 years of age would receive a pension of Rs.1000 per month
The weavers after attaining 60 years of age would receive an old-age pension of Rs.1000 per month
An amount of Rs.40 crore would be granted to the sector for the handloom Support Programme.
Life Insurance Scheme would be provided to the ancillary workers and weavers.
Providing loan or credit assistance to the weavers.
Providing infrastructural facility to the handloom clusters under the National Handloom Development Programme.
The weavers would be provided with the Hank Yarn Price subsidy, Transport Subsidy and Depot Subsidy while purchasing the silk yarn and hank yarn.
Steps will be taken to register the handloom varieties and traditional products to protect the weaving craftsmanship and the heritage of weaving sector.
For the products of the handloom, an exclusive identity will be given like Handloom Mark, India Handloom Brand and Silk Mark. This is to separate from the fake handloom products.
The interest subsidy will be increased from 4% to 6% for the Primary Handloom Weavers Co-operative Societies.
The Rebate Subsidy Scheme will be increased from Rs.60 crore to the amount of Rs.150 crore per year. This is to develop the sales of the handloom cloth.
Credit support will be given to the weavers for Marketing and Production. The support will be provided from the Government of India Schemes and NABARD.

Power loom Sector

The following facilities are provided for the Power loom Sector from the Tamilnadu Government:

Supply of electricity at the rate of 750 units per month will be provided to 1.06 lakh power loom units.
The power loom sector will be provided with a concession in the electricity tariff.
To an extent, 10% credit linked capital investment subsidy (CIS) will be provided for the investment of new shuttle-less loom under the Amended Technology Upgradation Fund Scheme (ATUFS).
Subsidy of 60% to the maximum of Rs.50 crore will be provided for the development of infrastructure under the Modified Comprehensive Power loom Cluster Development Scheme (MCPCDS). This is to increase the export and production of the sector.
An insurance amount of Rs.1 lakh to Rs.4 lakhs will be provided to workers in case of natural or accidental death or permanent or partial disability due to an accident.
To provide skills for the workers, 75% or a maximum of Rs.10,000 per person will be given.
Several financial support will be provided for the workers, like life insurance cover, educational assistance, marriage assistance, maternity assistance, the benefit of pension and assistance for the purchase of spectacle.
To the extent of 10% additional capital subsidy is provided for purchasing new shuttleless looms. A maximum of Rs.4 lakh per loom.
Capital subsidy of 10% will be given for new preparatory machines.
An additional capital subsidy of 10%, a maximum of Rs.30 lakh per unit will be provided for 2 units of warping machines and 1 unit of sizing machine.
To upgrade the plain looms, a capital subsidy of 50% will be sanctioned.
To set up a trade facilitation centre, 25% of the cost that is a maximum of Rs.10 crores will be provided.
To set up the infrastructure for production and export, 9% of the project cost will be provided. The maximum amount allocated is Rs.9 crore.

The following are the components that were introduced to develop the power loom sector through comprehensive schemes.

S.No	Schemes	Incentives Offered	People subject to the incentives
1	In-situ Upgradation of Plain Power looms.	Rs.20,000 to Rs.81,000	Economically weak power loom units
2	Group Workshed Scheme (GWS)	Rs.400 to Rs.900 per square feet	Shuttleless looms
3	Yarn Bank Scheme	Corpus fund up to Rs.200 lakh per yarn bank, free of interest	Special Purpose Vehicle (SPV) or Consortium
4	Common Facility Centre (CFC)	Subsidy up to Rs.200 lakh	For design, training, information cum trade centres
5	Pradhan Mantri Credit Scheme	Margin Money Subsidy of 20%, maximum of Rs.1 lakh. Interest Subvention of 6% per year for the working capital loan. Term loan for a maximum period of 5 years	Power loom units or weavers
6	Solar Energy Scheme for Power looms.	Capital subsidy of Rs.2.23 lakh to Rs.8.55 lakh	Small Power loom units, which has up to 8 looms
7	Tex-Venture Capital Fund	50% of project cost, maximum of Rs.3 crore	Private Power loom MSME companies

Tamilnadu New Integrated Textile Policy 2019

Objectives

Area of Focus