by Apparel Resources News-Desk
06-March-2019 | 2 mins read
Tamil Nadu was the first State to come out with the Textile Policy in the year 1998. Today state’s Chief Minister Edappadi K Palanisamy released Tamil Nadu Comprehensive Textile Policy 2019 announcing various unique benefits. We have complied 9 things that you need to know about the latest policy.
1. The state government has extended 2% interest subsidy for modernizing spinning machines that are over 15 years old. Out of 24 million spindles in the state, around 11 million fall in the category and this benefit would help the spinning sector to get modernized.
2. The benefits extended for the weaving and garment sectors include 10% capital subsidy for all new machines. The announcement of 25% of the project cost with the ceiling of Rs.10 crore for trade facilitation centre.
3. The 10% capital subsidy for wider width fabric processing, 5% interest subsidy for common effluent treatment plant, 15% capital subsidy for the individual effluent treatment plant, Rs.1 crore R & D assistance for effluent treatment plant should greatly benefit the processing segments in Tamil Nadu.
4. The policy has a slew of incentives offered for technical textiles including 9% capital subsidy, 6% interest subsidy, 100% stamp duty exemption and also providing Rs.1 crore assistance for overseas study.
5. The incentives are being offered for setting up the mini textile parks by extending 50% subsidy or Rs.2.5 crores per park. It would help the small-scale units to consolidate the capacity and modernize.
6. There is a 5% additional capital subsidy extended for Southern Districts. The assistance provides for meeting compliance cost and acquiring technology would help Tamil Nadu textile industry in a big way.
7. There is 50% subsidy subject to maximum of Rs.1.5 crore for construction of labour quarters would greatly benefit the entire textile industry in the country.
8. Rs.5 crore assistance extended for up-skillment of garment workers that would greatly benefit the Tirupur cluster
9. P. Nataraj, Chairman, The Southern India Mills’ Association (SIMA) thanked the Chief Minister Edappadi K Palanisamy and Minister for Handlooms & Textiles, O.S. Manian for this policy. He is of the opinion that Tamil Nadu Textile Policy would go a long way and make the State to remain as number one State in the country.