Indian Ministry of Textiles has proposed two new schemes – New Powerloom Credit Yojana and Solar Energy Scheme – to the Government of India, which are currently being examined by the Government and have been introduced to help powerlooms to operate at their optimal capacities and avoid stoppages.
Powerlooms in certain states like Gujarat and Maharashtra are operating at sub-optimal capacities. Factors such as reduction in the purchase of fabrics and increased input costs have resulted in partial stoppage of powerlooms in a few clusters across India, leading the Ministry of Textiles to consider these schemes, stated Smriti Irani, Union Textiles Minister in a written reply in Lok Sabha.
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It may be mentioned here that the Government has already introduced multiple schemes to accelerate the development of the powerloom sector which include In-Situ Upgradation Scheme for plain powerlooms, ‘Group Work-Shed Scheme’ to help in the construction of work-sheds, ‘Group Insurance Scheme’ for social security, Integrated Skill Development Scheme (ISDS) for skill upgradation, and Integrated Scheme for Powerloom Sector Development (ISPSD) for extending support in the form of buyer-seller meet, yarn banks and setting up of common facility centres.
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Additionally, the Government had earlier approved a special package for the apparel sector of Rs. 6,000 crore, which includes special incentives for employment generation, relaxation of Income Tax Act and enhanced duty drawback covering state levies among other things.
