Union Textiles Minister Launches PowerTex India
What is PowerTex India? The government has finally launched the PowerTex India scheme across 45 locations in the country. It is aimed towards developing the powerloom sector. It is not a single scheme but rather a cluster scheme that will address various issues related to the powerloom sector. Under this one umbrella scheme there are about 9 sub schemes that will not only help the sector boost economically but will also help it upgrade its tools and machinery.
Under the In-Situ upgradation scheme, the economically weaker power plants will get financial assistance. The purpose of this scheme is to give financial aid to the powerloom sector so that they develop and grow. Many rural livelihoods are attached with this sector. Hence, a financial backup to this sector will ensure an overall growth of the Indian rural and poverty stricken sections. The power sector employs over 44 lakh households across the nation. A boom in this sector will help boost the economy as well.
The Union Textile Minister Smriti Irani launched it in Bhiwandi, Maharashtra while other local leaders launched it in their respective jurisdictions. It is clear that this scheme is launched in very remote areas. Ajay Tamta, the State’s Textile Minister launched it in Surat. The additional secretary, Ministry of Textiles, Pushpa Subrahmanyam, launched it in Erode. Apart from this, the Chief Ministers of various other states launched it in various areas. This scheme was simultaneously launched across the 45 locations at the same time. This scheme will start applications from 1st April onwards.
Indian powerloom sector is a large industry it accounts for nearly 80 percent of the woven fabrics of the entire world. It has also given 63 lakh direct jobs to people, especially to those below poverty line. The majority of the rural workers and poverty stricken female workers are covered under this industry. Hence the booming of powerlooms will ensure the development of a section of society.
There are around 25.2 lakh powerlooms around the world which makes PowerTex extremely important. Senthilkumar, the Chairman of SIMA, has appealed to all the workers to make use of the PowerTex scheme. PowerTex India Scheme will help meet the demands of the industry, so that they can maintain a competitive position at the global level.
Components of PowerTex India
- In-situ Upgradation of Plain Powerlooms: The In-Situ Upgradation scheme will help the powerloom in many ways. It will provide 50 to 90% subsidy to the powerlooms for upgrading to semi automatic shuttle looms or to get shuttle less rapier looms. If you already have semi automatic shuttle looms then also you will get the subsidy to upgrade to shuttle less rapier looms. Under the upgradation scheme you will get subsidy to upgrade or change the attachments of the loom.
- Group Workshed Scheme (GWS): the GWS will provide 40 to 90 per cent subsidy on the construction of work shed. This will help improve the construction of the powerlooms. It will also greatly improve the working conditions and give the workers some relief.
- Yarn Bank Scheme: The Yarn Bank Scheme makes it easier for the weavers to obtain yarn. They can now obtain yarn directly at reasonable prices without having to deal with middlemen. Under this scheme a yarn bank will be established from where the weavers can collect their materials.
For this purpose, a board of 11 members shall be formed. They will form the Special Purpose Vehicle (SPV). Each of those SPVs will provide yarns at a subsidized rate. They will provide interest free corpus funds to obtain yarns at wholesale rate. The upper limit for the fund is Rs. 2 crore.
- Common Facility Centre (CFC): Each CFC across the area will get a subsidy of Rs. 2 crore so that they can develop cluster-like facilities. Once they do make A, B, C clusters, each of them will get different subsidies. The A, B and C clusters will get 60, 70 and 80 percent of the project respectively. Those who belong to J&K/North East Region will be eligible for 90 percent subsidy. The cluster D will also get 90 percent subsidy.
- Pradhan Mantri Credit Scheme for Powerloom Weavers: The Pradhan Mantri Credit Scheme consists of categories like Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India. So Under these categories the benefits will be classified. For example, under the PMMY you will get a margin subsidy that consists of 20 percent of the cost of the project. However, the upper limit for obtaining such subsidy is Rs. 1 lakh.
Apart from this, you also get an interest subvention at 6 percent per year for your working capital and also for your long term loan. You can take long term loans up to Rs. 10 lakh for a period of 10 years at this interest rate. Under the Stand-Up India scheme, the plant will get a 25% Margin Money Subsidy within Rs. 1 lakh and Rs. 25 lakh.
- Solar Energy Scheme for Powerlooms: The Solar energy scheme will help the powerlooms in a large extent. They will have two options – either to get on-grid power solar plant or to get off grid solar power plant. Both of them have their own advantages and perks.
In the on-grid solar power plant, the powerlooms will experience infrequent shortage of power. This means that they will have power almost all the time. But the power tariff will be too high. In the off-grid solar power plant, they will experience a high supply of power. This is why this type of power plant will be established in places with low power supply. Places where on-grid power supply is not available, the off-grid solar power plant will give proxy.
- Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes: It is important that the possible buyers meet the industry. Also powerloom sector needs to ensure that there is ample exposure for its products. The government shall assist these aspects to ensure that the market not only booms, but thrives.
- Tex Venture Capital Fund: This component of the plan will help the existing enterprises and promising business models. They will give them funds to expand their business or to start their business from scratch if the models look impressive. They will help the business boom and will also help improve the quality and efficiency standards to the entire industry.
- Grant-in-Aid and Modernisation & Upgradation of Powerloom Service Centres (PSCs): This is also another important aspect of the working condition. Under this part of the scheme, the government will ensure that the tools re modernized and world class. This shall make work easier for the powerloom workers. It can also help improve the production ability. More production in lesser time shall ensue.
How will it benefit the industry?
These schemes can together work to enhance the infrastructure of the powerloom industry. It can produce quality products at a faster rate for the world market. The products will become easily available. Also, the poor workers will no longer have to depend on third person or middlemen to obtain the products.