Maharashtra’s dying textile sector to see revival

YarnsandFibers News Bureau 2015-12-03 16:00:00 – Mumbai

A delegation of big textile industrialists met Chief Minister Devendra Fadnavis on Wednesday, sought subsidies in power tariff on high-intensity operating machinery in their powerlooms. In the state, the government has given power subsidy to small and medium powerloom operations and handloom sectors, those units which operate on high intensity big machinery to produce yarn have to pay commercial rates between Rs 8.50 to Rs 9 per unit.

Fadnavis said that the big players would have to share social responsibilities and not weigh the textile sector in terms of profit and loss.

Fadnavis next said that the textiles dismissed as ‘dying industry’ has the potential to offset unrest within the agriculture sector which has almost 55 percent population relying on it for livelihood. To revive textile industries, the policy reforms had been initiated.

Regarding extending power subsidies to looms on high intensity machinery, the finance ministry said that they are against it as the state will have to bear an additional burden of Rs 300 to Rs 350 crore.

Officials said that Fadnavis had asked Power Minister Chandrakant Bawankule to ascertain the financial implications of extending any subsidy to high intensity powerlooms.

The chief minister said he was committed to rationalizing power tariff to promote the textile sector, and planned to evolve an overall policy for rural development and employment in the textile industry. He urged textile sector to consider socio-economic aspects and rural development through textile revival.

Maharashtra houses almost 11 lakh powerlooms. There are 300 textile units which operate on 70,000 machines.

Textile sector has been in a state of neglect. The private and public partnership to adopt modern technology to revive the dying textile sector is expected to bring Rs 50,000 crore. It is expected to generate employment for 15 lakh people.

The integrated plan by the ministries of textile, power and industries will ensure a slew of policy changes to facilitate the setting up and upgradation of powerlooms. The decision to promote textile parks is expected to bring greater investments.

Fadnavis said that today, almost 55 percent of the population is dependent on agriculture. Financially, it is not sustainable for various reasons, including recurring drought and shrinking agriculture land holding in rural areas.

They are going to promote textile industry as the second largest sector which would help in development of backward districts, where cotton cultivation is higher in Vidarbha, Marathwada and parts of North Maharashtra.

Amravati in Vidarbha is being promoted as a financial hub. Cluster textile development is needed in Amravati, Bhiwandi, Navi Mumbai, Malegaon, Ichhalranji, and Vashi among others

The government has also launched a Farm to Fashion project. Investors are seeking further rationalization of tariff to withstand competition and make textile sector financially viable.

0 0 vote
Article Rating
Inline Feedbacks
View all comments

Market Intelligence

Ask for free sample Report

why us?
21 yrs


Fortune 500

Customer Base


dedicated team


Countries Served Worldwide


Register below to receive our newsletters with latest industry trends and news!

WeCreativez WhatsApp Support
Our support team is here to answer your questions via WhatsApp. Ask us anything!
? Hello