The Hindu Business Line : `Incentives will help textile sector grow'

THE Tamil Nadu Government has come out with an investment incentive scheme to help the textile industry, particularly the small and medium enterprises.

The fiscal incentive in the form of interest subsidy for the weaving and processing industry has been made in the recent budget.Accordingly, the State Government will provide a 5 per cent back-ended interest subsidy for new processing units, which adopt clean technology. The subsidy will be given to the small and medium enterprises, which avail themselves of loans from the financial institutions for technology upgradation. This incentive will be in addition to the capital subsidy being extended under the Union Government's TUFS scheme.

The budget has also proposed to implement a `cluster-based loom upgradation scheme' to helpthe decentralised powerloom weavers. This proposal has been chalked out, according to the budget paper, in the backdrop of the Centre's TUFS not making an impact on the modernisation of the weaving sector in Tamil Nadu.

Under the Tamil Nadu scheme, weavers, master weavers and group of weavers can take up modernisation of looms by establishing cluster of automatic or shuttle-less looms. The minimum economic size of looms in these clusters would be sixin the case of shuttle-less looms and 12 in the case of automatic looms. The State would provide back-ended interest subsidy of 5 per cent on the term loan for modernisation of looms availed by the SMEs from the commercial banks/FIs.

Welcoming the budget proposals targeting the textile industry, Mr M. Senthil Kumar, Chairman and Managing Director of the Palladam Hi-tech Weaving Park,said these measures were aimed at strengthening the decentralised powerloom industry in the State. The sops and government commitment will lift the export potential of the State's textile industry and the powerloom sector, he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page