Maharashtra government for the first time has decided to provide subsidy to textile owners which would not be linked to bank loans. In a policy decision taken last week, the government has decided to provide capital subsidy which would be delinked from bank loans. Spinning mills, cotton ginning, processing and printing units would be given 35 per cent capital subsidy; technical textiles and composite units 30 per cent; and power loom and other textile-related units 25 per cent. Power loom owners from the cotton belts of north Maharasthra, Marathwada and Vidarbha would be eligible for a further 10 per cent capital subsidy.
AleemFaizee, founder-secretary of Malegaon Industries & Manufacturers Association (MIMA), welcoming the decision said this will majorly boost the industry. This had been a long-standing demand of loom owners.
India’s textile industry has around 24 lakh power looms across the country and is the second largest employment sector directly employing over 35 million people. Of the 24 lakhs powerlooms, nearly half are in Maharashtra with Bhiwandi (eight lakh), Malegaon (two lakh) and Dhule (10,000), accounting for over 80 per cent of Maharashtra’s power looms and over 40 per cent of country’s power looms.
Over the past 14 years, the centre has spent a whopping Rs 75,000 crore under various phases of the Textile Upgradation Fund Scheme (TUFS) to bring textile industry on par with global standards. The scheme was meant to provide subsidy for modernisation and technology upgradation of all sectors in this industry, including spinning, weaving and garments.