COIMBATORE: The state government’s proposal enabling a six per cent interest subsidy for the modernisation of over 15-year-old spinning machines, for a period of five years, is expected to revive the dwindling spinning sector in Tamil Nadu.
“This unique policy is a much-needed one to revive the textile industry that is going through a crisis due to huge incentives offered by other competing States, poor demand, and inadequate labour force. There is a dire need to modernise the spinning units to have a level playing field and compete both at national and global levels,” said SK Sundararaman, the chairman of Southern India Mills Association (SIMA).
It is to be noted that of the 46 million ‘working’ spindles across the country, 19 million spindles are in Tamil Nadu, of which over 12 million spindles are over 15 years old. Notably, the spinning sector has stalled the modernisation of its manufacturing facility due to prolonged sluggishness in the market, poor export demand, geopolitical issues, uncompetitive raw material prices, and high logistics costs.
The textile sector believes that modernised spinning machines would increase productivity, enhance quality, and produce yarn for highly valued added fabrics and garments. SIMA also thanked the state for the immediate sanction of Rs 10 crore for the remaining period of the financial year 2024-2025.
On December 9, in an official order, Department of Handlooms, Handicrafts, Textiles, and Khadi proposed interest subvention to modernize spinning machines.