PowerTex India Scheme for Powerlooms
The Government has launched PowerTex India, a comprehensive scheme for powerloom sector development, simultaneously at over 45 locations in the country. The powerloom sector alone employs over 44 lakh people and the scheme will especially benefit small powerloom weavers. Powerlooms are a predominant segment in the entire textile value chain.
According to a powerloom survey carried out in 2013, there are 24.86 lakh powerlooms in the decentralized sector, out of which 1.03 lakh (4.1%) are shuttleless looms. It accounts for more than 57% of the total cloth production and provides employment to nearly 44.86 lakh persons. Around 60% of fabrics and garments manufactured by powerlooms are exported.
Components of PowerTex India
The comprehensive scheme has the following components:
- In-situ Upgradation of Plain Powerlooms: The prime objective of the scheme is to upgrade existing plain looms to semi-automatic/shuttleless looms to improve quality and productivity of the fabric being produced by way of fixing certain additional attachments/kits and enable them to face the competition in domestic and international markets, by way of providing financial assistance to economically weaker low-end powerloom units.
- Group Workshed Scheme (GWS): To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations. To organise powerloom units in a cluster and to provide improved working condition in terms of more space, work environment, improve the work efficiency to enhance their competitiveness in the global market.
- Yarn Bank Scheme: To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers. To avoid middle man/ local supplier’s brokerage charge on sales of yarn. Government shall provide interest free corpus fund of maximum Rs 200 Lakh per yarn bank to SPV/Consortium.
- Common Facility Centre (CFC): To provide financial assistance for setting-up of Common Facility Centres such as design centre / studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory, workers’ residential space, common pre-weaving facilities viz. yarn dyeing, warping & sizing, twisting etc., and post weaving facilities viz. processing, etc
- Pradhan Mantri Credit Scheme for Powerloom Weavers: To provide financial assistance viz. Margin Money Subsidy and interest reimbursement as against the credit facility (term loan) availed under Pradhan Mantri Mudra Yojana (PMMY) to the decentralized powerloom units / weavers. Margin Money Subsidy as against the credit facility (term loan) availed under Stand-up India scheme by the SC, ST & Women Entrepreneur of the decentralized powerloom units / weavers to meet their credit requirements such as for investment needs (Term Loan) and for working capital etc
- Solar Energy Scheme for Powerlooms: To provide financial assistance/capital subsidy for installation of On Grid Solar Photo Voltaic Plant (without Battery back up) and Off Grid Solar Photo Voltaic Plant (with Battery back-up) by small powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.
- Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes:
- Promote awareness and to trigger the developmental mode of decentralised powerloom.
- Disseminate information about the modalities and benefits of schemes, programmes.
- Create an enabling environment for publicity.
- Give wide publicity, including event based publicity etc. through electronic, print, film media, multimedia, to the Powerloom schemes, programmes.
- Encourage voluntary action for ensuring effective implementation of schemes,
- Organize Buyer-Seller Meets and Reverse Buyer-Seller Meets to promote market for powerloom product.
- Tex Venture Capital Fund: SIDBI Venture Capital Fund Ltd., (SVCL) invests on behalf of Ministry of Textiles in the form of equity in MSMEs to kick start an enterprise/ expansion. Investments will typically be in innovative private powerloom MSME companies.
- Grant-in-Aid and Modernisation & Upgradation of Powerloom Service Centres (PSCs): The Govt. assistance will be provided for modernization and upgrading the Powerloom Service Centres with the facilities which are required in the cluster. This would include improving testing facilities and also installing modern looms to create awareness of the latest available technologies and provide training. Further, the Powerloom Service Centres would also be provided with Preparatory machines, Testing instruments, Sewing machines for Garment and Apparel, Embroidery Machines, Design Development facilities etc.
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