Development of the PM MITRA Park in Virudhunagar, a textile park in Salem, higher capital subsidy for investments in technical textiles and support for technology upgradation in the spinning mills are some of the announcements for the textile industry in the Tamil Nadu Budget presented on Monday by Finance Minister Thangam Thennarasu.
The Budget plans to establish 10 mini-textile parks in Erode, Karur and Virudhunagar at ₹20 crore, setting up of a research and business development centre at ₹25 crore for technical textiles, 25% capital subsidy for investments in technical textiles, and 6% interest subvention for technology upgradation in spinning mills.
“An integrated complex, spanning 4 lakh sq. ft. comprising exhibition halls for display of handlooms and handicrafts produced in various districts of Tamil Nadu and various States will be established in Chennai, at an estimated cost of ₹227 crore,” the Budget said.
The Southern India Mills’ Association has said that the State accounts 45% of the spinning capacity of the country, and almost two-third of the capacity is more than 15 years old. The earlier government had extended 2% interest subsidy for spinning modernisation and that has been now increased to 6%. “This will greatly bring down the capital cost and encourage the spinning segment to modernise the old machines,” said S.K. Sundararaman, its chairman.
The Tiruppur Exporters Association president K.M. Subramanian said creating industrial estates with plug and play facilities and incentivising women employment would benefit the garment industry. However, the government should extend support and concessions for investments in non-conventional energy by small and medium-scale enterprises and the textile dyeing units.
According to M. Jayabal, president of Recycle Textile Federation, Tamil Nadu government should get power at subsidised rate as done in many others States to support the existing industries.
