State further subsidises power supply to textile industry till 2028

... -

---

March 13, 2024 Kolhapur: Ahead of the Lok Sabha election, state govt has decided to further subsidise the electricity bills for 13 lakh powerloom units across Maharashtra.

The total amount of additional
subsidy to be given towards the power bills will be around Rs 600 crore. The subsidy will be in place till 2028. The power supplied to the textile sector is already heavily subsidised.
Powerlooms running on less than 27 horsepower (hp) motors will get additional subsidy of Re 1 per unit. Already, such powerlooms, which are also called simple powerlooms, get a subsidy of Rs 3.77 per unit. Now, the operators of simple powerlooms will have to pay only Rs 3.5 per unit after deducting the subsidy amount. For advanced powerlooms, which are run on more than 27hp motors, the additional subsidy amount is Rs 0.75 per unit.
Stakeholders claim the subsidy has come at the right time as the textile sector has become more competitive.
“The cloth we sell still costs more. Therefore, there is low demand across India as well as in the global markets. With the power being subsidised, textile operators will be able to make cloth at a lower rate. This would increase the sales. Almost 55% of the country’s textile industry is in Maharashtra. At the same time, it also provides the highest employment,” said Ichalkaranji powerloom association president Vinay Mahajan.

Though textile operators are pleased with the decision, state govt has made it mandatory for powerloom operators to register themselves, something the operators have been opposing for many years. Govt is of the view that registration will avoid subsidising the wrong industries.
“Registration is not necessary. It is in no way related to the subsidy issue. We have been opposing registration for a long time because of the possibility of unnecessary harassment by bureaucrats,” he said.

---

Share to ....: 437    

Most viewed

• Amid weak demand, cotton price surge adds to woes of yarn mills
• Centre willing to procure jute and cotton crop if prices fall below MSP : Goyal
• BTMA signals minimum wage structure for cotton textile sector within next two weeks
• ASEAN delegation to visit India on 17 Feb for FTA review
• State further subsidises power supply to textile industry till 2028
• Bank fraud case: Textile baron Neeraj Saluja sent to 5-day police remand
• New MSME payment rule leads to many cancelled orders
• Boosting trade relations with India
• India’s cotton yarn exports to surge by 85-90% in FY2024: ICRA
• Bhiwandi Textile Firm Owner Flees After Duping 13 Manufacturers of Rs 58.55 Lakh