Zubin Irani, Hon’ble Union Minister of Textiles, launched a Comprehensive Scheme for development of Knitting and Knitwear Sector with various components under Powertex India in New Delhi. The scheme was launched simultaneously in major three clusters, Tirupur, Ludhiana and Kolkata through Video conference.

Raja M Shanmugham, President, TEA thanked the Hon’ble Union Minister for launching a Comprehensive Scheme for development of Knitting and Knitwear Sector under Powertex India and also he welcomed the salient features of the eight components. He is confident of achieving the vision target of Rs. 01Lakh cr by 2022 with the help of. He said the scheme would be highly supportive through financial assistance and beneficial to the knitting and knitwear MSMEs in Tirupur and pointed out that this will also encourage the new entrepreneurs to setup units in Tirupur.

While highlighting yarn bank scheme for knitting and knitwear units, he said the Government shall provide interest free corpus fund maximum up to Rs. 200 Lakh per yarn bank to Special Purpose Vehicle (SPV) – Minimum 11 members are required to form SPV, after submission of the Bank Guarantee for 25 per cent of the government share of the corpus fund, for 25 per cent of the Government of India share in favour of Textile Commissioner valid for at least three years period.

Under Solar energy scheme for knitting and knitwear units, the Government of India shall provide financial assistance / capital subsidy to the extent of 50 per cent, 75 per cent and 90 per cent of the basic cost of Solar energy plant to the applicants of General Category, SC, and ST respectively. He said for the solar capacity on grid upto 45 MW, the subsidy amount would be Rs. 35,000 / KW to the General Category and for SC and ST, the subsidy would be RS. 52,500 / KW and RS. 63,000 / KW respectively.