Government's subsidy schemes, tech upgradation to aid 2.5 mn ailing powerlooms
The government has introduced subsidy schemes to provide financial assistance of up to 90 per cent under the Pradhan Mantri Credit Scheme for powerloom weavers.
Under this scheme, the government will provide margin money subsidy of up to 20 per cent of the project cost with a ceiling of Rs 100,000 as well as interest subvention
at six per cent per annum for working capital and term loan up to Rs 10,00,000 for a maximum period of five years. The government has also introduced technology upgradation
plan — Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries (SAATHI) — for India's ailing powerloom sector. “This initiative is
expected to benefit almost 2.5 million powerloom units across India, which produce 57 per cent of the 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 Limited) over a three- to four-year
period,” said Ujwal Lahoti, chairman, Cotton Textiles Export Promotion Council (Texprocil).
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