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Power Tex India Scheme Launched to Boost Powerloom Sector

The government of India has taken a major step to make up the best usage of solar energy in India. The upcoming Power Tex India scheme of the government will help up in boosting up the power loom sectors across the country. The motive of the government is to develop the power loom sector and then spread it across the world. The Ministry of textile launched this scheme for all the power looms centers in India. The scheme is mainly launched in Bhiwandi, Maharashtra and is also for the Erode in Tamil Nadu. Both these states have power loom centers and the scheme will be very beneficial for these states. Not only these 2 states but the scheme will be applicable for all the power loom centers across India.

Powerloom Sector in India:

Powerloom sector is one of the crucial sectors in the textile value chain of India. It employs 44 lakh people. It is currently facing several challenges owing to lackluster domestic and global market condition.

  • As pointed out by Chairman of Southern India Mills Association, Mr. Senthilkumar, the capacity of power loom sector increased 12% during last seven years, but the fabric production rose by only 2.4% during the same period.
  • In this scenario, PowerTex India scheme will prove as a boon for this sector and will bring in the much required competitive business spirit among weavers.

Senthilkumar said the scheme would greatly benefit the power loom sector to improve its competitiveness in the global market and also enable the sector supply quality fabrics at a competitive rate to the garments and made-up sector.

Components of Power Tex India scheme:

Below are main components of the Power Tex India scheme under which the power loom sector would be benefited.

  1. In-situ up-gradation of plain power looms: The objective of the first component of in-situ upgradations is to provide financial assistance to economically weaker low-end power loom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachment/kits. The objective is also to improve quality and productivity of the fabrics being produced and enable them to face the competition in domestic and international markets.
  2. Yarn bank scheme: The yarn bank scheme is aimed at providing interest-free corpus fund to special purpose vehicle (SPV)/consortium to enable them to purchase yarn at a wholesale rate and give the yarn at a reasonable price to the small weavers. The objective is also to avoid middleman/local supplier’s brokerage charge on sales of yarn.
  3. Pradhan Mantri Credit Scheme for power loom weavers: Under the Pradhan Mantri Credit Scheme for power loom, weavers, financial assistance would be provided to the credit facility (term loan) availed under Pradhan Mantri Mudra Yojana (PMMY) to the decentralized power loom units/weavers.
  4. Solar Energy Scheme for power loom: The Solar Energy Scheme is for providing financial assistance/capital subsidy for installation of ‘on-grid solar photovoltaic plant’ (without battery backup) and ‘off grid solar photovoltaic plant’ (with battery backup) by small power loom units to attain sustainable development goal of government and to give thrust to renewable energy. The two components would help them achieve the highest production level and quality. The scheme would provide 50% to 90% subsidy on the plantation of solar off-grid power plants. Through this component, the government is emphasizing on the use of solar energy in power loom units.
  1. Group Workshed Scheme (GWS)
  2. Common Facility Centre (CFC)
  3. Facilitation, IT, awareness, market development and publicity for power loom schemes
  4. Tex Venture Capital Fund
  5. Grant-in-Aid and modernization and Upgradation of power loom service centers (PSCs).

Power Tex India Scheme will definitely benefit the power loom sector to face the competition level in the global market and also enable the power loom sector to be self-reliant.

Reference and Details:

  1. For more information visit: http://texmin.nic.in/
  2. http://texmin.nic.in/sites/default/files/PowerTex%20India%20Brochure%20English.pdf
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