10 key points from Power Tex Scheme | Policy News India
Home » News » Policy News » 10 Key Points From Power Tex Scheme

10 key points from Power Tex Scheme

Share: 
      Newsletter

READ MORE ON Government SupportPolicy News IndiaPowerloomSIMA

Power Tex India1. For the development of powerloom sector in India, the Textiles Ministry simultaneously launched Power Tex Scheme (effective April 1, 2017) at over 45 different locations. Union Textiles Minister Smriti Irani launched it in Bhiwandi (Maharashtra) while the same was launched at Surat by Ajay Tamta, State Minister of Textiles, in Erode by Pushpa Subrahmanyam, Additional Secretary, Ministry of Textiles.

2. The Group Work Shed Scheme (GWS) under Power Tex provides 40 to 90 per cent subsidy on construction cost of work shed, thereby improving working conditions.

3. Besides, the Yarn Bank Scheme empowers weavers to avail yarn directly at a reasonable price without any interference of middlemen/agents. The Yarn Bank should have minimum 11 members to form Special Purpose Vehicle (SPV). Each SPV shall provide interest free corpus fund of maximum Rs. 2 crore to purchase yarn at wholesale rate.

Also Read –  Indian Govt. to announce package for powerloom sector on April 1

4. Subsidy of Rs. 2 crore per Common Facility Centre (CFC) will be provided to encourage powerloom weavers to avail cluster-like facilities. A, B and C grade clusters will get subsidy of 60, 70 and 80 per cent of the project, respectively. For D grade clusters and clusters in NER/J&K, 90 per cent subsidy will be provided.

5. Under Pradhan Manthri Credit Scheme, there are categories like Stand-Up India, Pradhan Manthri Mudra Yojana (PMMY). Under PMMY there will be margin money subsidy at the 20 per cent of project cost with a ceiling of Rs. 1 Lakh. Interest subvention at the 6 per cent per year both for working capital and term loan up to Rs. 10 Lakh for maximum period of 5 years.

6. Under Solar Energy Scheme, the plants have two options: first is On-Grid Solar Power Plant where power cut/shortage is negligible and power tariff is high; second is Off-Grid Solar Power Plant in areas where there is power shortage & on-grid power is not continuously available. The scheme has maximum subsidy up to Rs. 8,55,000.

7. Under Tex Venture Capital Fund, funds will be given to innovative business models, successful enterprises looking for expansion. Under In-Situ upgradations scheme for plain powerlooms, financial assistance to be provided to economically weaker powerloom unit owners for upgradations of plain looms. There will be 50 to 90 per cent (total Rs. 20,000 to 81,000) subsidy for upgradation.

8. Grant-in-Aid and modernization and upgradation of powerloom service centre will benefit PSCs.

9. Senthilkumar, Chairman, SIMA has appealed all the powerloom weavers to fully utilize the various benefits announced under Power Tex India Scheme and meet the fabric demands of the downstream sectors and remain globally competitive.

10. Indian powerloom sector accounts for 80 per cent of the woven fabric production, 60 per cent of the total fabric production and provides direct jobs to 63 lakh people especially the people below the poverty line, rural masses and women folk. The powerloom sector has around 25.2 lakh looms. These points therefore make Power Tex Scheme extremely vital.

 

Have some news? Let us know on news@apparelresources.com

Recommended by Apparel Resources

Indian Govt. to trademark handmade carpets

Indian Government is mulling to introduce standards and a trademark to strengthen India’s place as the top sourcing destination of handmade carpets and...

Indian Govt. inks pact to provide cheaper loans to SC artisans, weavers

A Memorandum of Understanding (MoU) has been signed between the Development Commissioner (Handlooms) and National Scheduled Caste Finance and Development Corporation to facilitate cheaper loans to artisans and weavers belonging...

Indian Govt. not to review FDI in multi-brand retail

The Indian Government has made it clear that it is not going to review the Foreign Direct Investment (FDI) policy, which allows overseas...

BGMEA seeks exemption from Tax at Source

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the Government of Bangladesh to exempt the garment industry from Tax at Source for...

Delhi (India) garment manufacturers upset over minimum wage hike

Anil Baijal, Lieutenant Governor of the national capital of India, New Delhi, has recently cleared the Delhi Government’s proposal to revise minimum wages of industrial workers by about 37 per...

Pakistan gets GSP Plus status

European Union, which has been an important trading bloc for Pakistan, has given Generalised Scheme of Preferences (GSP) Plus status to the country...

South Africa approves grant to boost garment and textile industry

A grant of US $ 355.65 million has been approved by the Department of Trade and Industry (DTI) of South Africa to boost...

Haryana (India) Textile Policy 2017 fails to impress MSME sector

The (Micro, Small and Medium Enterprises) MSMEs in the Indian state of Haryana are not happy with the recently announced Textile Policy to...

Indian Govt. to implement schemes via KVIC for rural artisans

India’s Ministry of Micro, Small & Medium Enterprises (MSME) has decided to implement various schemes through Khadi and Village Industries Commission (KVIC), the...