The Southern India Mills Association has hailed the Tamil Nadu Government for releasing the Tamil Nadu Comprehensive Textile Policy 2019 announcing various unique benefits.
The policy extends the 2 per cent interest subsidy for modernising spinning machines of above 15 years old. Out of 24 million spindles in the State, around 11 million spindles are above 15 years old and this benefit would help the spinning sector to modernize the same.
SIMA welcomed the various benefits extended for the weaving and garment sectors including 10 per cent capital subsidy for all new machines. It appreciated the announcement of 25 per cent of the project cost with the ceiling of Rs.10 crore for trade facilitation centre. It stated that 10 per cent capital subsidy for wider width fabric processing, 5 per cent interest subsidy for common effluent treatment plant, 15 per cent capital subsidy for the individual effluent treatment plant, Rs.1 crore RD assistance for effluent treatment plant would greatly benefit the processing segments in Tamil Nadu.
SIMA also appreciated the slew of incentives offered for technical textiles including 9 per cent capital subsidy, 6 per cent interest subsidy, 100 per cent stamp duty exemption and Rs.1 crore assistance for overseas study. The incentives offered for setting up the mini textile parks by extending 50 per cent subsidy or Rs.2.5 crore per park were also appreciated.