Pradhan Mantri Credit Scheme: Industry cheers incentives to power looms
The government has introduced schemes for financial assistance of up to 90 per cent under the Pradhan Mantri Credit Scheme for power loom weavers. Under this scheme, the government will provide margin money subsidy to the extent of 20 per cent of the project cost, with a ceiling of Rs 1 lakh, as well as interest subvention at six per cent per annum, both for working capital and term loans up to Rs 10 lakh for a maximum of five years.
Another scheme for the ailing power loom sector is Sustainable and Accelerated Adoption of Efficient Textile Technologies to Help Small Industries, abbreviated as SAATHI.
“This is expected to benefit almost 2.5 million power loom units, which produce 57 per cent of total cloth in the country. The use of efficient equipment would result in energy savings and cost savings to the unit owner, who would in turn repay in instalments to EESL (Energy Efficient Services Ltd) over a three to four-year period,” said Ujwal Lahoti, chairman, The Cotton Textiles Export Promotion Council.
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