With 47% of spinning capacity, 36% of open-end spinning capacity, 60% yarn export, 20% of powerloom capacity, 12% of handloom capacity, 70% of knitted garment manufacturing capacity, 20% of TUF investments, 80% of spinning machinery, and 75% of spinning machinery spares and accessories manufacturing capacity, the Textiles and Clothing (T&C) industry is the backbone of the Tamil Nadu economy, accounting for one-third of the nation’s textile business. The state also generates over Rs. 75,000 crores in export revenue.
Nineteen million of the 46 million spindles in operation nationwide are in Tamil Nadu, with more than 12 million of them being above the age of fifteen. Due to factors including protracted market sluggishness, low export demand brought on by global geopolitical unrest, uncompetitive raw material prices, excessively high logistical costs, etc., the spinning industry has put a halt to modernizing its manufacturing facilities. In light of this, SIMA, speaking for the State’s textile industry, asked the Tamil Nadu government to declare a strategy that would only encourage the modernization of spinning capacity, as the government is already offering assistance to the weaving and processing sectors.
Now, the Department of Handlooms, Handicrafts, Textiles and Khadi, Government of Tamil Nadu vide its G.O. (Ms) No.166 dated 09.12.2024 has issued the guidelines enabling the spinners to avail 6% interest subvention for the modernization of spinning machines that are over 15 years old for a period of 5 years.
In a Press Release issued here today, Dr. S. K. Sundararaman, Chairman, SIMA has thanked the Hon’ble Chief Minister of Tamil Nadu, Thiru. M. K. Stalin and the Hon’ble Minister for Handlooms & Textiles, Thiru. R. Gandhi for announcing the unique policy and a much needed one to revive the spinning segment in the State. He has stated that the textile industry in the country, particularly in the State, is going through a crisis due to huge incentives offered by other competing States, market slowdown due to poor demand, inadequate labour availability, etc. He has also stated that the policy support from Government has come at a time when there is a dire need to modernize the spinning units in Tamil Nadu to have a level playing field and compete with other States and globally. He has added that the modernized spinning machines would increase productivity, enhance the quality and produce yarn for high value-added fabrics, made ups and garments.
SIMA Chairman has appreciated the Government for immediately allocating Rs.10 crores for the remaining period of FY 2024-25. He also appreciated the Government for allocating 60% to ring frame modernization, 15% for air jet spinning/electro spinning and 25% for open-end spinning modernization out of the total scheme allocation. He has said that the fund allocation for open-end spinning and air jet/electro spinning would help these segments which account around 70% of the VSF yarn manufacturing and over 60% of recycled yarn production and thereby the downstream sectors in Erode and Karur regions.
