Tamil Nadu's Department of Handlooms, Handicrafts, Textiles, and Khadi has announced a scheme to modernize the state's textile industry. Spinners can now access a 6% interest subvention for a period of five years to upgrade spinning machines older than 15 years. The state government has allocated ?10 crore for the current fiscal year to support textile mills seeking to invest in and adopt advanced technologies. This initiative aims to revitalize the textile sector in Tamil Nadu by encouraging modernization and improving efficiency. 

Tamil Nadu Finance Minister Thangam Thenarasu has outlined a vision to position the state as a global leader in the textile industry. To achieve this goal, the state government will introduce a special scheme offering a 6% interest subvention for technological upgrades in the spinning sector. This scheme, with an estimated cost of ?500 crore over the next 10 years, aims to encourage investment in modern technologies and enhance the competitiveness of Tamil Nadu's textile industry.

bThe government order specifies that 60% of the allocated funds will be directed towards modernizing ring frame spinning mills, while 15% will be allocated for air jet/electro spinning technologies and the remaining 25% for upgrading open-end spinning rotor kits. To qualify for the scheme, the machinery and spare parts, specifically spindles and rotors, must be at least 15 years old.

SK Sundararaman, Chairman of the Southern India Mills' Association (SIMA), expressed gratitude to the Tamil Nadu government for introducing a crucial policy to revitalize the state's spinning sector. He emphasized the urgent need for modernization to ensure competitiveness with other states and global markets. Sundararaman highlighted that the upgraded spinning machines would significantly boost productivity, improve yarn quality, and enable the production of high-value-added fabrics, made-ups, and garments.

Tamil Nadu currently houses 19 million out of India's total 46 million working spindles, with over 12 million of these spindles being more than 15 years old. The textile industry in India, especially in Tamil Nadu, is facing significant challenges due to competitive incentives offered by other states, sluggish market demand, and labor shortages.

The allocation of funds towards open-end spinning and air jet/electro spinning technologies will significantly benefit these segments, which are crucial for the viscose staple fiber yarn and recycled yarn production in the Erode and Karur regions. These segments contribute to approximately 70% of viscose staple fiber yarn manufacturing and over 60% of recycled yarn production, thereby impacting the downstream sectors in these regions.

The Textiles and Clothing (T&C) industry is a cornerstone of Tamil Nadu's economy, contributing significantly to the state's overall economic growth. The state houses one-third of India's textile business and generates over ?75,000 crore in export earnings.