SIDBI Venture Capital Fund to invest on behalf of Textile Ministry in the form of equity in MSMEs under PowerTex India

Mumbai, Apr 3 (KNN) The PowerTex India scheme launched for the powerloom sector would boost the entire powerloom sector especially the small weavers. The scheme would provide incentive and subsidy for upgradation of units and would give special emphasis on sustainable energy and credit availability to the powerloom weavers.

PowerTex India, a comprehensive scheme for powerloom sector development, was simultaneously launched at over 45 locations in the country.

Launching the scheme in Bhiwandi, Thane district, Maharashtra, on Saturday, the Union Textiles Minister, Smriti Zubin Irani said that Bhiwandi will be known for resurgence in Powerloom sector.

Powerloom sector employs over 44 lakh people.

PowerTex India is an in-situ Upgradation of Plain Powerlooms under which financial assistance would be extended to weaker powerloom unit owners for upgradation of plain looms.

It would also enable upgradation to semi-automatic or shuttleless looms by changing certain parts and attachments of the loom.

It provides 50-90 per cent subsidy for upgrading plain powerloom to semi-automatic shuttleloom or shuttleless rapier loom.

Under PowerTex India, financial assistance would be provided for setting up Common Facility Centre that includes a wide range of pre-weaving as well as post weaving facilities.

Government, under the scheme, will provide subsidy of Rs 2 crore per CFC.

There is a Group Workshed Scheme (GWS) under which 40-50 per cent subsidy would be provided to build workshed at units that have TUFS compatible machineries.

The Yarn Bank Scheme under PowerTex India will eliminate middle man and local supplier’s brokerage charge on sales of Yarn directly at reasonable price.

Pradhan Mantri Credit Scheme for Powerloom Weavers would provide financial assistance to decentralized power loom units and weavers and it also includes assistance for SC, ST and Women entrepreneurs under Stand-up India.

The Solar Energy Scheme for Powerlooms will provide financial assistance to small powerloom units for installation of on-grid as well as off-grid solar photo voltaic plant.

Further, under the Tax-Venture Capital Fund under PowerTex India, SIDBI Venture Capital Fund Ltd (SVCL) would invest on behalf of Textile Ministry in the form of equity in MSMEs. SVCL will invest maximum 50 per cent of the project cost with a ceiling of Rs 3 crore.

The other benefits under the scheme includes Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes and Grant-in-Aid and Modernisation & Upgradation of Powerloom Service Centres (PSCs). (KNN Bureau)