A six percent interest subsidy for modernisation of spinning segment, and increase in the special capacity subsidy from 15 percent to 25 percent for the technical textiles, MMF yarn produced from recycled products, MMF fabric and apparel manufacturing in Tamil Nadu are among a slew of measures announced by Thangam Thennarasu, the State’s Minister of Finance in the assembly recently.
A substantial amount of Rs. 1,683 cr has been earmarked for the Virudhunagar PM MITRA park. In addition, Rs. 25 cr has been allotted to set up ‘Research and Business Development Fund for Technical Textiles and Man-made Fibre’, and another Rs. 25 cr is set aside in the budget for apparel clusters in Virudhunagar, Pudukottai, and Kanyakumari, a silk cluster in Salem, and a yarn cluster in Namakkal.
The state budget for 2024-25 has also allocated Rs. 20 cr for 10 mini textile parks in the districts of Karur, Erode and Virudhunagar. The Southern India Mills’ Association (SIMA) has appreciated the budget announced recently and thanked Chief Minister MK Stalin, Finance Minister Thennarasu, and Minister of handlooms and textiles R Gandhi for incorporating various suggestions given by the organisation.
SIMA Chairman Dr. SK Sundararaman said the six percent interest subsidy for modernisation of the spinning segment with a budget outlay of Rs. 500 cr is an attractive announcement which would greatly bring down the capital cost and encourage the spinning segment to modernise the old machines. Stating that technical textiles and MMF manufacturing and recycled products manufacturing are the future growth engines and highly demanded by the global brands, Dr. Sundararaman said the increase in capital subsidy to 25 percent is a very big encouragement for investors from the state. He hoped that the increase in subsidy would also attract investments from different states and abroad.
The allocation of Rs. 1,683 cr for Virudhunagar PM MITRA park is expected to generate employment for two lakh people, while the estimated investment of Rs. 800 cr from Salem Textile Park is expected to generate jobs for 8,000 people, SIMA Chairman said. Various allotments for apparel, silk and yarn clusters along with the research and business development fund “will greatly enhance the competitiveness, attract investment and create rural jobs especially for women,” said.
Further, a budget outlay of Rs. 227 cr to establish integrated complex comprising exhibition halls, design and incubation centres and commercial buildings at Chennai, in an area of four lakh sq.ft., will greatly help the handloom and handicrafts sectors, the release added. “The 10 percent payroll subsidy extended for new units employing 500 or more women physically challenged and transgenders people of Tamil Nadu domicile would give enormous job opportunities for the people of state,” SIMA said. “A vision of generating additional 100 billion units of renewable energy by 2030 is yet another fillip to the state budget and right direction to mitigate the carbon footprint and meet the global sustainability goal. The announcement of conducting a global start up summit during January 2025 would attract the eyes of the global investors and also throw opportunities for boosting exports,” it added.
