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Tamil Nadu Budget Boosts Textile Industry With PM MITRA Park & Capital Subsidies

Updated: Feb 20, 2024 03:39:10pm

Tamil Nadu Budget Boosts Textile Industry With PM MITRA Park & Capital Subsidies

Chennai, Feb 20 (KNN) The Tamil Nadu Budget, presented by the state’s Finance Minister Thangam Thennarasu, heralds a significant boost to the textile industry through various initiatives.

Among the key announcements is the development of the PM MITRA Park in Virudhunagar and a textile park in Salem. Additionally, higher capital subsidies for investments in technical textiles and support for technology upgradation in spinning mills were unveiled.

The budget outlines plans to establish 10 mini-textile parks in Erode, Karur, and Virudhunagar, each allocated Rs 20 crore. Furthermore, a research and business development centre for technical textiles, funded at Rs 25 crore, is set to be established.

Notably, a 25 per cent capital subsidy for investments in technical textiles and a 6 per cent interest subvention for technology upgradation in spinning mills are also part of the budgetary provisions.

In a move to promote indigenous craftsmanship, an integrated complex spanning 4 lakh sq. ft. with exhibition halls for handlooms and handicrafts from various districts of Tamil Nadu and other states will be developed in Chennai, with an estimated cost of Rs 227 crore.

Recognising the need for modernisation, the Southern India Mills’ Association commends the increase in interest subsidy from 2 per cent to 6 per cent for spinning modernisation.

This move is expected to significantly reduce capital costs and encourage the modernisation of aging machinery in the spinning segment.

The Tiruppur Exporters Association lauds initiatives such as creating industrial estates with plug-and-play facilities and incentivising women employment, foreseeing benefits for the garment industry.

However, calls are made for further support and concessions for investments in non-conventional energy by small and medium-scale enterprises and textile dyeing units.

According to M. Jayabal, President, Recycle Textile Federation, advocating for subsidised power rates for the Tamil Nadu government to support existing industries is crucial, aligning with practices adopted by several other states.

(KNN Bureau)


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