Current Affairs PDF

Govt launches PowerTex India scheme for powerloom sector

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Union Textiles Minister, Ms. Smriti Irani launched PowerTex India Scheme on 1st April 2017 at Bhiwandi in Thane district of Maharashtra. It is a gamut of schemes aimed at development of powerloom sector in India with a special focus on small powerloom weavers. The scheme was simultaneously launched at 45 locations across India.

  • Ms. Smriti Irani along with Maharashtra Chief Minister Mr. Devendra Fadnavis launched PowerTex India helpline for scheme related assistance. For nationwide publicity of scheme, a PowerTex van was also flagged off.

Components of PowerTex India Scheme:

  • In-situ upgradation scheme of Plain Powerlooms: Provides subsidy to financially weak powerloom unit owners for upgradation of looms. As a result of upgradation, productivity and quality of fabrics will improve, which will provide a competitive edge to powerloom fabrics in domestic and international markets.
  • Group Workshed Shceme (GWS): Provides subsidy for construction of worksheds for shutterless looms. This will provide better working conditions in terms of more space.
  • Yarn Bank Scheme: Under this scheme, Government of India will provide Interest-Free corpus fund to Special Purpose Vehicle (SPV) or Consortium to purchase yarn at wholesale price. This will benefit weavers by eliminating middlemen’s commission and local suppliers’ brokerage.
  • Common Facility Centre: Government of India will provide Rs. 2 crore subsidy to setup Common Facility Centre having pre-weaving and post-weaving facilities.
  • Pradhan Mantri Credit Scheme for Powerloom weavers: Provides access to affordable credit facility to powerloom units (including SC, ST and Women Entrepreneurs) through Pradhan Mantri Mudra Yojana (PMMY) and Stand-up India. Under PMMY in context of PowerTex India Scheme, decentralised powerloom unit/weavers will be provided 20% margin money of the project cost, subject to a ceiling of Rs. 1 lakh. They will also get benefit of interest subvention at the rate of 6% per annum on working capital and term loans up to Rs. 10 lakh for 5 years.  Under Stand-up India in context of PowerTex India Scheme, SC, ST & Women Entrepreneurs will be provide 25% margin money of project cost, subject to a ceiling of Rs. 25 lakh.
  • Solar Energy Scheme: Provides subsidy to set up on-grid or off-grid Solar Photo Voltaic Plant. This scheme will help weavers to save power cost and will also promote usage of renewable energy.
  • Tax venture Capital Fund: Capital required for expansion will be provided to Micro Small and Medium Enterprises by Ministry of Textiles through SIDBI Venture Capital Fund Ltd.Govt launches PowerTex India scheme for powerloom sector(SVCL)

Financial assistance will be provided for modernisation and technological upgradation of Powerloom Service Centres (PSCs).

Powerloom Sector in India:

Powerloom sector is one of the crucial sectors in textile value chain of India. It employs 44 lakh people. It is currently facing several challenges owing to lacklustre domestic and global market condition.

  • As pointed out by Chairman of Southern India Mills Association, Mr Senthilkumar, the capacity of powerloom sector increased 12% during last seven years, but the fabric production rose by only 2.4% during the same period.
  • In this scenario PowerTex India scheme will prove as a boon for this sector and will bring in the much required competitive business spirit among weavers.