Maharashtra state has started disbursing power subsidy of up to ₹3.77 per unit to powerlooms, spinning mills and garment units. Many textile units, mostly small and medium ones that are struggling to raise working capital because of weak balance sheets, had shut down part of their operating capacity due to weak domestic demand and sharp fall in exports.
Energy accounts for nearly half the production cost in the textile value chain. While spinning mills across India are struggling to pass on the elevated cotton prices to consumers, textile manufacturers are facing falling exports. The domestic economic slowdown has lowered the demand of fabric and readymade garments, resulting in a continuous squeeze in profit margins.
State commissioner of textiles Madhvi Khode Chaware hoped that the funds would benefit textile and garment units, according to a report in a leading business daily.
Solapur has emerged as an uniform hub, but manufacturing units there need to focus on exports, said Ajit Chavan, additional commissioner in the Indian textiles ministry.
Amit Kumar Jain, director, Solapur Garment Manufacturers Association (SGMA), said the uniform manufacturing industry is growing at a faster pace and may become a ₹25,000-crore sector by 2024 from ₹18,000 crore now.
With a budget provision of ₹150 crore, the state government has announced ₹3 per unit of power subsidy for cooperative spinning mills and ₹2 per unit for large knitting, garment, and hosiery units in the state.
Published On : 23-12-2019
Source : Fibre 2 Fashion
