Announcement of new Textile Policy by Tamil Nadu Govt. in 2019

When the Chief Minister of Tamil Nadu made an announcement in March 2019, he sounded the bugle for a new awakening for the Textiles sector of the state. For something that would have a bearing on the lives of thousands  of families, that is to provide relief and succour, that promises to better the existing conditions of life, it is akin to a god-send.

The New Integrated Textile Policy 2019, announced by the Govt. of Tamil Nadu, is nothing short of a boon, a major life-saver to thousands of weavers and their families across the state.

The salient features of the Policy

• 2 per cent interest subsidy for modernising spinning machines that are over 15 years old would be provided. Out of the 24 million spindles across the state, around 11 million are over 5 years old. This means that the modernization would be for half the total number in the state with benefit.
• Further to this there would be 10 per cent capital subsidy for wider width fabric processing, 5 per cent interest subsidy for common effluent treatment plant, 15 per cent capital subsidy for the individual ETP and 1 crore R&D assistance for ETP. All these would greatly benefit the processing segments in the State.

 

• There would be incentives for setting up mini textile parks, such as extending 50 per cent subsidy or Rs.2.5 crore per park. Such incentives will help small-scale units to consolidate their capacity and modernize with textile effluent treatment plants, mini textile park, up-skilling and infrastructure development.

These slew of measures for different sectors of the Textile industry would with their implementation, ensure long term sustenance of these sectors and benefit the State.

• The downstream sectors of the textile value chain would definitely get strengthened, with lots of new investments flowing into the weaving and processing sectors. This would then in turn give a boost to Technical textiles, particularly in Defence.

The fillip that it would give

• The modernization of the various sectors from yarn to finished product would improve the level of competitiveness of the state to a much improved level. Areas such as Technical Textile Sector, Skill Development, Textile Processing and Weaving Segments would stand to benefit tremendously as would their allied departments.
• The providing of assistance to build workers’ hostel would ensure better living conditions for the workers and also improve their quality of work and thereby life.
• This long overdue demand of this industry could be a trendsetter for other states of India to follow.

Industry upbeat over new Textile Policy ( announced by TN Govt.)

• The New Integrated Textile Policy 2019 has been hailed by every section of the textile industry as a unique one and one that would ensure the sustenance of the industry in the long term.
• P Nataraj, Chairman, the Southern India Mills’Association, thanked the government for extending 2 per cent interest subsidy for modernising spinning machines that are over 15 years old.
• “Out of the 24 million spindles in the State, around 11 million are over 15 years old. This will, therefore, benefit the spinning sector by enabling them to modernise,” he said.
• The association has hailed the benefits extended for the weaving and garmenting sector, including the 10 per cent capital subsidy for all new machines.

• “The 10 per cent capital subsidy for wider width fabric processing, 5 per cent interest subsidy for common effluent treatment plant, 15 per cent capital subsidy for the individual ETP and ₹1 crore R&D assistance for ETP will greatly benefit the processing segments in the State,” he said.
• He also appreciated the incentives for setting up mini textile parks, such as extending 50 per cent subsidy or ₹5 crore per park. “Such incentives will help small-scale units to consolidate their capacity and modernise.”
• T Rajkumar, Vice-Chairman, Confederation of Indian Textile Industry, while thanking the government for incorporating all the suggestions put forth by the industry in the Comprehensive Textile Policy that was announced today, said, “It is good for the State. It will ensure the long-term sustenance of the industry,” he said, referring to the slew of incentives offered to the different sectors of the industry.
• “The downstream sectors of the textile value chain would definitely get strengthened, with lots of new investments flowing into the weaving and processing sectors. It is expected to give a boost to Technical textiles, particularly in defence,” Rajkumar said.

The policy announcements will give a big boost to all sectors from yarn to finished fabric, said an FIEO spokesperson.

New Delhi, Saturday, March 09, 2019:

• CITI welcomes the new Textile Policy 2019 announced by the Government of Tamil Nadu.  Thiru. Edapaddi Palanisamy, Hon’ble Chief Minister of Tamilnadu announced a comprehensive Textile Policy 2019 for the Tamil Nadu Textiles and Clothing Industry.  The policy gives a slew of incentives for the new investments and also for modernising the existing spinning sector.
• In the press release issued here today, Mr. T. Rajkumar, Chairman, Textile Sector Skill Council (TSC) and Deputy Chairman, Confederation of Indian Textile Industry (CITI) has welcomed the new policy and thanked the Government of Tamil Nadu for announcing a unique textile policy.

• T. Rajkumar has appreciated the Government for giving importance to the Technical Textile Sector, Skill Development, Textile Processing and Weaving Segments.
• He has also welcomed the incentives offered for the textile effluent treatment plants, mini textile park, up-skilling and infrastructure development.
• T. Rajkumar also appreciated the Government for providing assistance to build workers’ hostel.  He stated that the unique textile policy would greatly help the state to further strengthen the competitiveness.
• He also stated that the new textile policy was a long overdue demand of the textile industry.