Maharashtra has announced a capital subsidy for the upcoming self-financed textile projects in the state. The aim is to modernise and boost the state’s textile industry.

Spinning mills, cotton ginning, processing and printing units will get a 35 per cent capital subsidy, technical textiles and composite units will be given a 30 per cent capital subsidy, and powerloom and other textile related units will get a 25 per cent capital subsidy.

This is for the first time that the state has announced a capital subsidy for self-financed textile units. So far the subsidy was credit linked. Malegaon weavers, along with other textile sectors, are rejoiced with this decision. These weavers have been for long wanting capital subsidy to be delinked. Under this policy, entrepreneurs who don’t want to take loans and are self-sufficient can also avail of this subsidy.

Of the 2.5 million powerlooms working in India, Maharashtra has more than 50 per cent of them, comprising those in Bhiwandi, Malegaon, Ichalkaranji, Sholapur, Nagpur and other textile clusters. In spite of the government releasing a huge amount of funds for modernisation under the Technology Upgradation Fund Scheme, the country has so far been able to set up only around two lakh modern and shuttle-less looms.