Tamil Nadu Textile Mills Seek TEEM Subsidy for Spinning and Ginning Modernisation

Industry urges inclusion of spinning and cotton ginning sectors under TEEM to support technology upgrades and competitiveness

Textile mills in Tamil Nadu have called on the Union government to extend the benefits of the Textile Expansion and Employment Mission (TEEM) to the spinning and cotton ginning sectors.

TEEM, a flagship initiative launched by the Union government, is intended to modernise the traditional textile cluster and encourage fresh investments in the sector.

According to industry sources in Coimbatore, the cost of producing one kilogram of yarn in a modern textile mill is ₹1.2, compared to ₹1.8 in a textile mill operating with machinery that is 10–20 years old.

Apart from raw material costs, industry representatives noted that Bangladesh and Vietnam continue to compete with India in yarn production costs.

The industry has stated that technology upgrades can help Indian textile mills achieve 25% higher productivity, improve quality by 20% and reduce power consumption by 15%.

Need for modernisation

Industry data indicates that nearly 26% of India's installed spindles are more than 25 years old, while another 21% are between 16 and 20 years old.

Industry sources said a structured, time-bound modernisation programme under TEEM would help textile mills upgrade ageing machinery and remain cost competitive.

They have also requested the government to provide a minimum 20% capital subsidy and a 7% interest subsidy for five years to support modernisation initiatives.