Power Tex India, a unique powerloom scheme: SIMA

Coimbatore: Southern India Mills Association (SIMA) today thanked Union Textile minister Smriti Irani for launching Power Tex India Scheme and considering most of the proposals of the powerloom sector.

The scheme was launched at Bhiwandi and also in all powerloom centres across the nation, including Erode in Tamil Nadu through video conference. SIMA chairman M Senthilkumar said in a statement that the powerloom sector has been facing numerous challenges due to sluggish global and domestic market conditions.

Though the capacity has increased by 12 per cent in the last seven years, fabric production has increased only by 2.4 per cent during the last seven years, he said. Senthilkumar said the scheme would greatly benefit the powerloom sector to improve its competitiveness in the global market and also enable the sector supply quality fabrics at a competitive rate to the garmenting and made-up  sector.

He was speaking after attending the launch function at Erode, which was inaugurated by Additional Secretary, Ministry of Textiles, Pusha Subrahmanyam.
He appreciated the solar power plant scheme giving 50 to 90 per cent subsidy with the lower cap for powerlooms connected to the grid and higher benefit for powerlooms that go off the grid.

This would give great relief to states, especially Maharashtra and Tamil Nadu that account over 75 per cent of powerlooms in the country to reduce power subsidy commitment and also enable the sector to be self-reliant, he said.

Benefits under Mudra Yarn Banking Scheme shall provide interest free corpus fund of maximum Rs 200 lakh per Yarn Bank, he said. He also appreciated the Pradhan Manthri Credit Scheme for powerloom weavers that provide 20 per cent margin money with a ceiling of Rs one lakh,interest subvention at the rate
of six per cent, both for working capital and term loan up to Rs 10 lakh for a maximum period of five years.

Appreciating the assistance given for women entrepreneurs under Stand Up India Scheme by providing 25 per cent margin money subsidy with a ceiling of Rs 25 lakh, he lauded the Texventure Capital Fund Scheme, where financial assistance is provided up to Rs three crore invested under SIDBI Venture Capital Fund Scheme.

Senthilkumar, former chairman of Powerloom Development and Export Promotion Council, urged all powerloom weavers to fully utilize various benefits announced under Power Tex India Scheme and meet fabric demands of the downstream sectors and remain globally competitive.