In a move aimed at bolstering the state’s textile sector, the Tamil Nadu Department of Handlooms, Handicrafts, Textiles and Khadi has unveiled a new scheme offering a 6% interest subvention to spinners. This initiative is part of a broader strategy to modernise ageing machinery and position Tamil Nadu as a global textile powerhouse.
The scheme, which allocates ₹10 crore for the current fiscal year, targets textile mills seeking to upgrade their technology. The state government envisions this as a crucial step towards achieving its goal of becoming the leading textile state in India. The Finance Minister, Thangam Thenarasu, has emphasized the importance of modernising the spinning sector and has committed ₹500 crore over the next decade to facilitate technological advancements.
The guidelines stipulate that the subvention will be available for ring frame spinning mills (60%), air jet/electrospinning (15%), and open-end spinning rotor kits (25%). To be eligible, the machinery and spare parts must be at least 15 years old.
SK Sundararaman, Chairman of the Southern India Mills Association (SIMA), has hailed this policy as a much-needed lifeline for the state’s ailing spinning industry. He highlighted the urgent need to modernize to remain competitive with other states and global markets. Modernization, he asserted, will not only boost productivity and quality but also enable the production of high-value-added fabrics, made-ups, and garments.
Tamil Nadu, home to 19 million of India’s 46 million working spindles, faces significant challenges due to stiff competition from other states and sluggish market demand. The allocation of funds for open-end spinning and air jet/electrospinning is particularly significant for the Erode and Karur regions, which are major hubs for viscose staple fibre yarn and recycled yarn production.
The textile and clothing industry is a cornerstone of Tamil Nadu’s economy, contributing significantly to both domestic production and exports. By investing in modernization and innovation, the state aims to secure its position as a global leader in the textile sector.
