SIMA appreciates Tamil Nadu’s new policy of 6% interest support to modernize spinning sector

The Tamil Nadu government has unveiled a new scheme to revitalize the beleaguered textile industry, particularly the spinning sector. The state government has allocated Rs 10 crores to provide a 6 per cent interest subvention for the modernization of spinning machines older than 15 years.

This initiative aims to address the challenges faced by the spinning sector, including sluggish market conditions, declining export demand, and rising input costs. By modernizing its machinery, the industry can enhance productivity, improve quality, and tap into the growing demand for high-value-added textiles.

The scheme prioritizes the modernization of ring frames, air jet spinning/electro spinning machines, and open-end spinning machines. This focus will benefit the key textile hubs of Erode and Karur, known for their significant contributions to VSF yarn manufacturing and recycled yarn production.

S K Sundararaman, Chairman of the Southern India Mills Association (SIMA), has expressed gratitude to the Tamil Nadu government for recognizing the urgent need for modernization. He emphasized that this policy support will help the state's textile industry regain its competitive edge and thrive in the global market.

With this strategic move, the Tamil Nadu government is positioning the state as a leading textile manufacturing hub in India. The modernization scheme will not only strengthen the domestic textile industry but also contribute to the overall economic growth of the state.