Tamil Nadu government to extend subsidy for modernisation of textile processing, audits and non-conventional fibre production

Tamil Nadu government will allocate ₹268 crore in the Tamil Nadu New Integrated Textile Policy 2025 to help modernisation of the textile processing sector in the State.

According to an order issued on August 13 by the Department of Handlooms, Handicrafts, Textiles and Khadi, the processing sector will get ₹250 crore for five years. The Department will give maximum ₹5 crore subsidy each under the 25% capital investment subsidy for new processing units that are connected to CETPs or have an individual effluent treatment plants. It will extend upto ₹4 crore as subsidy under the 25% capital investment subsidy scheme for expansion, modernisation, or upgrading the existing processing unit with individual effluent treatment plant or connected to a common effluent treatment plant.

In a move to encourage textile and apparel industries to go in for sustainable production processes, the government has announced the Resource Efficiency Audit scheme. The government will give upto ₹3 lakh or 50% of the cost of the audit as subsidy for assessment by cleaner production (energy, water, waste water, or chemical) experts. If an equipment should be installed based on the recommendation of the assessment for energy or water conservation, the government will give 25% of the cost of the equipment or ₹10 lakh as subsidy.

If a new unit comes up to produce non-conventional fibre or yarn such as banana, bamboo, hemp, water hyacinth, etc., the government will extend maximum ₹1 crore subsidy for each unit or 25% of the capital investment for plant and machinery.

Textile Director R. Lalitha told The Hindu the applications will be received online and a portal will be operational for this in a week or so.