Tamil Nadu that accounts 1/3rd of the textile business size, 45% of the spinning capacity, 10% of the handloom capacity, etc., has been losing its competitive advantage due to attractive textile policies of different States like Gujarat, Maharashtra, Madhya Pradesh, etc., in the country. The Association has submitted the pre-budget memoranda suggesting various policy initiatives to sustain the competitiveness of the Tamil Nadu textile industry and remain as No.1 State in the textiles and clothing manufacturing sector in the country.
In a press release, Dr. S. K. Sundararaman, Chairman, The Southern India Mills’ Association (SIMA), has highly appreciated and thanked the Hon’ble Chief Minister of Tamil Nadu, Thiru. M. K. Stalin, Hon’ble Minister of Finance, Thiru. Thangam Thennarasu, and Hon’ble Minister of Handlooms and Textiles, Thiru. R. Gandhi, for considering the various suggestions given by SIMA and making announcements in the State Budget. He has mentioned that announcement of 6% interest subsidy for modernization of spinning segment with a budget outlay of Rs. 500 crores is an attractive announcement when the spinning segment is passing through an unprecedented crisis. He has said that though the State accounts 45% of the spinning capacity of the country, around 2/3rd of the capacity is more than 15 years old. He has said that earlier Government had extended 2% interest subsidy for spinning modernization and that has been now increased to 6%. He said that this would greatly bring down the capital cost and encourage the spinning segment to modernize the old machines. He also lauded the announcement saying that Tamil Nadu is the first State to announce 6% interest subsidy for modernization in the country.
SIMA Chairman has also welcomed the increase in the special capacity subsidy from 15% to 25% for the technical textiles, MMF yarn produced from recycled products, MMF fabric and apparel manufacturing in Tamil Nadu. Dr. Sundararman has said that technical textiles and MMF manufacturing and recycled products manufacturing are the future growth engines and highly demanded by the global brands and therefore, this announcement is a very big encouragement, not only for the investors in Tamil Nadu, but also has hoped that it would attract investments from different States and also abroad.
Allocation of Rs. 1683 crores for Virudhunagar PM MITRA Park, which is expected to generate employment for two lakh people, estimated investment of Rs. 800 crores from Salem Textile Park is expected to generate jobs for 8000 people, allotment of Rs. 25 crores to set up “Research and Business Development Fund for Technical Textiles and Manmade Fibre”, allotment of Rs. 25 crores for apparel clusters in Virudhunagar, Pudukottai, Kanyakumari, Silk cluster in Salem, Yarn cluster in Namakkal, allotment of Rs. 20 crores for 10 mini textile parks in the districts of Karur, Erode and Virudhunagar will greatly enhance the competitiveness, attract investment and create rural jobs especially for women in the aforesaid districts. A budget outlay of Rs. 227 crores to establish integrated complex comprising exhibition halls, design and incubation centres and commercial buildings at Chennai in an area of four lakh sq. ft., will greatly help the handloom and handicrafts sectors, says SIMA Chairman. He has added that 10% payroll subsidy extended for new units employing 500 or more women physically challenged and transgenders people of Tamil Nadu domicile would give enormous job opportunities for the people of Tamil Nadu. A vision of generating additional 100 billion units of renewable energy by 2030 is yet another fillip to the State budget and right direction to mitigate the carbon footprint and meet the global sustainability goal. The announcement of conducting a global start up summit during January 2025 would attract the eyes of the global investors and also throw opportunities for boosting exports.
SIMA Chairman has hailed the announcement of international skill development centres in Coimbatore, Madurai, free Wi-fi at 1000 locations in Coimbatore, Trichy, Madurai and Salem, development of IT park in 24.00 lakh sq. ft., area at Vilankurichi, Coimbatore, and four storey plug and play manufacturing facility with a budget outlay of Rs. 37 crores to create 1500 jobs in Coimbatore city are few more welcoming features in the State Budget.
