SIMA delegation met the Tamil Nadu Chief Minister and thanked for announcing 6% interest subvention for spinning modernization
The Textiles and Clothing (T&C) industry is the backbone for the Tamil Nadu economy as the State accounts 1/3d of the Textile business of the country. The State is the forerunner in installed spinning capacity (ring spinning, open-end spinning and air vortex spinning) and a leader in yarn exports from the country. The State also has been the hub for spinning machinery and its spares and accessories manufacturing activities. The industry fetches over Rs.75.000 crores export earnings.
However, out of 19 million working spindles, the spinning sector in the State is having over 12 million spindles aged 15 years or more due to stalled modernization activities by the mills because of prolonged sluggishness in the market, poor export demand, uncompetitive raw material prices, unduly high logistics cost, etc.
Considering the need to support the modernization of spinning mills in Tamil Nadu, the Government in its 2024-25 Budget has announced 6% interest subvention scheme to modernize spinning machines that are 15 years or more of age. In order to give effect to this announcement, the Government has announced the scheme guidelines on 09.12.2024 enabling the spinners to avail 6% interest subvention for the modernization of spinning machines that are 15 year or more old for a period of 5 years.
In a Press Release issued here today, Dr. S. K. Sundararaman, Chairman, SIMA has stated that SIMA delegation consisting of him, Mr.T.Rajkumar, former Chairman, CITI & SIMA, Mr.S.Jagadesh Chandran, Honorary Secretary, SISPA, Mr.M.Jayabal, President, Recycle Textile Federation, Mr.G.Arulmozhi, President, Open End Spinning Mills Association and Dr.K.Selvaraju. Secretary General, SIMA, met the Hon’ble Chief Minister of Tamil Nadu, Thiru. M. K. Stalin and the Hon’ble Minister for Handlooms & Textiles, Thiru. R. Gandhi today at Chennai (16.12.2024) and thanked them for announcing the unique policy and a much needed one to revive the spinning segment in the State. He has stated that the delegation has highlighted the current plight of the textile industry in the country, particularly in the State, that is going through a difficult phase 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 delegation appreciated the policy support from Government that 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 said that the delegation appreciated the Government for immediately allocating Rs. 10 crores for the remaining period of FY 2024-25. 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 which the delegation brought to the notice of the Hon’ble Chief Minister.
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