Tamil Nadu Textile Policy 2019: All You Need To Know In Brief


The Tamil Nadu state government has come up with a new policy that aims at achieving higher and sustainable growth across the entire textile value chain. The policy is also designed to promote investment in textile and clothing sector and augment balanced regional development. Also, special incentives have been granted to textile entrepreneurs to set up units in southern Tamil Nadu.

Tamil Nadu Comprehensive Textile Policy 2019 which is revised after 10 years, seems to be a unique one and hailed by Textile and clothing industry entrepreneurs. Also, industry associations including Southern India Mills’ Association (SIMA) has welcomed the policy. Below are brief of what this new TN textile policy offers:

Spinning Sector: 2 per cent interest subsidy for modernizing spinning mills where spindles are of above 15 years vintage. Tamil Nadu is home for about 24 million spindles out of which around 11 million spindles are above 15 years old and would benefit from this initiative.

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Weaving and Garment Sector: 10 per cent capital subsidy for all new machines. TN Govt. to assist in setting up of trade facilitation centre where 25 per cent of the project cost with the ceiling of Rs. 10 crore shall be provided by the state.  Free Supply of Electricity to Powerloom units @ 750 units bi-monthly for about 1.06 lakh weavers and concessional power tariff to this sector. Assistance Rs. 5 crore extended for up-skilling of garment workers.

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Dyeing, Printing and Wet Processing Sector: 10 per cent capital subsidy for wider width fabric processing, 5 per cent interest subsidy for common effluent treatment plant, 15 per cent capital subsidy for the individual effluent treatment plant and R&D assistance of Rs. 1 crore offered for effluent treatment plants.

Technical Textile Sector: 9 per cent capital subsidy granted for technical textiles projects along with 6 per cent interest subsidy. Also, stamp duty for setting up such projects would be completely exempted and assistance of Rs.1 crore would be provided for overseas study of technical textile projects.

Textile Parks: TN Govt to offer incentives for setting up mini textile parks by extending 50 per cent subsidy or Rs.2.5 crores per park to help the small scale units to consolidate their capacity and modernize.

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Incentives for Projects in Southern Districts: For projects in Southern districts of Tamil Nadu, all textile units would receive additional 5 per cent additional capital subsidy.

Single Window Clearance: To avoid procedural delays in getting statutory clearances from various authorities, Single Window Clearance will be provided by the State Government.


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