The second mega package is in line for Indian textile sector after a Rs. 6,500 crore for Garments announced in June this year. The package, which is in work for powerlooms sector, aims to upgrade powerlooms by providing them subsidies of Rs. 15,000 per unit for semi-automation. Also, the Government may offer small-scale loans through Micro Units Development and Refinance Agency Ltd. (MUDRA).
One of the Government official’s privy to the news told an Indian Daily, “We want to better the status of powerloom weavers and a certain set of incentives and social security schemes is being worked out. Powerloom workers want financial incentives and loans because they don’t have working capital. Their cost of production is high, which has rendered them uncompetitive… Tax benefits and marketing support are being considered.”
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Currently, there are 25 lakh powerlooms among which only less than 2 lakh are technologically upgraded. The powerloom sector employs 65 lakh people most among them have high input costs and reduced purchase of fabrics.
