UP approves subsidy to upgrade handloom & powerloom units

Lucknow, Apr 6 (KNN) The Uttar Pradesh Cabinet on Wednesday approved a proposal to provide subsidy for the upgradation and modernisation of existing handloom and powerloom units in the state.

The cabinet also approved a proposal to charge a flat electricity rate from powerloom units that have up to 5kw connections in the state.

Addressing the media, Textile Minister Rakesh Sachan said, “As per the approved proposal, 80 per cent subsidy will be given for setting up to two handloom units, while 75 per cent subsidy for the purchase of equipment for pit looms.”

“For setting up powerloom units, a 60 per cent subsidy that is about Rs 1.50 lakh out of estimated Rs 2.50 lakh will be provided by the government. In case of semi-automatic powerloom, Rs 1.80 lakh subsidy will be given for units requiring up to Rs 3 lakh, while in case of fully automatic powerloom, subsidy of 60 per cent i.e. up to Rs 3 lakh for an estimated investment of Rs 5 lakh will be provided,” he added.

With regards to the electricity rates, the minister pointed out that a flat rate of Rs 300 will be charged for 0.5 horse power machine in rural areas, while it will be Rs 600 for units in urban areas.

“Meanwhile, for a 1hp machine, Rs 400 will be charged in rural areas, and Rs 800 for urban areas,” he added.

As per reports, the government will also provide incentives to big powerlooms but only up to Rs 700 per horsepower per month.

The Uttar Pradesh government through a survey has identified 86,074 connections for powerlooms in the state. Out of the total, 73,805 connections are up to 5 kW.  (KNN Bureau)