TN: Textile industry seeks govt support for powerloom modernisation

W

ith a new textile policy on the horizon, people associated with the Tamil Nadu textile industry have appealed to the state government for support in modernising existing powerloom units.

The textile industry in Tamil Nadu is facing significant challenges, prompting stakeholders to call for investments in new machinery or retrofitting traditional powerlooms to remain competitive. Additionally, the industry has urged the state government to address issues with Common Effluent Treatment Plants, particularly concerning the management and disposal of sludge generated during effluent treatment. Recently, discussions were held between the Tamil Nadu Department of Handlooms, Handicrafts, Textiles, and Khadi and state textile industry associations in Chennai. An official from the department indicated that several rounds of talks have occurred with industry stakeholders, and a new textile policy is expected to be announced soon. This policy aims to better reflect the current needs of the industry and will build upon the 2019 textile policy.

The new policy is designed to support units with less than Rs 50 crore in turnover within the man-made fibre (MMF) sector. The state has also issued orders to establish 10 mini textile parks, while an integrated textile park near Salem, pending approval from the Central government, is anticipated to provide solutions for processing industries in the region. Notably, Tamil Nadu contributes one-third of India’s textile business and stands as one of the largest textile manufacturing hubs globally, generating employment for millions, including workers from other states.

In a recent policy note presented by R. Gandhi, Minister of Handlooms and Textiles, numerous benefits for the handlooms, handicrafts, textiles, and khadi sectors were outlined. The new textile policy aims to strengthen Tiruppur’s position in the apparel value chain. Known for its Rs 35,000 crore export business and Rs 25,000 crore in domestic trade, Tiruppur is expected to lead in Environmental and Social Governance (ESG) practices, attracting further investments. The garment sector workforce in Tiruppur is predominantly female, with women comprising 80 percent of its employees.

Industry stakeholders have raised concerns regarding rising electricity costs, as textile units currently pay around Rs 9.5 per unit—a significant factor affecting operational costs. Associations in Coimbatore and Tiruppur have urged the state to support struggling mills in the region. S.K. Sundararaman, Chairman of the Southern India Mills’ Association, highlighted that only 60 percent of textile mills in Tamil Nadu are currently operational. He warned that investment-friendly policies in states like Gujarat, Maharashtra, and Madhya Pradesh are luring businesses away from Tamil Nadu. Without timely intervention, Sundararaman cautioned that the state’s textile sector could face a severe downturn.

✔️ TN: Textile industry seeks govt support for powerloom modernisation

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