A delegation of textile association heads led by Southern India Mills Association (SIMA) met the Chief Minister of Tamil Nadu, M.K.Stalin and the Minister for Handlooms & Textiles, R. Gandhi on Monday at Chennai to thank them for announcing the guidelines for 6% interest subvention for spinning modernization scheme. Deputy Chief Minister Udhayanidhi Stalin was also present during this meeting. 

Considering the need to support the modernization of spinning mills in Tamil Nadu, the State Government in its 2024-25 Budget announced 6% interest subvention scheme to modernize spinning machines that are 15 years or more of age. In order to give effect to this announcement, the Government announced the scheme guidelines on 09.12.2024 enabling the spinners to avail 6% interest subvention for the modernization of spinning machines that are 15 year or more old for a period of 5 years.

Dr. S. K. Sundararaman, Chairman, SIMA said via a press release that SIMA delegation consisting of him, T.Rajkumar, former Chairman, CITI & SIMA, S.Jagadesh Chandran, Honorary Secretary, SISPA, M.Jayabal, President, Recycle Textile Federation, G.Arulmozhi, President, Open End Spinning Mills Association and K.Selvaraju. Secretary General, SIMA, met the CM and textile minister to express their gratitude.

He also shared that the delegation appreciated the policy support from Government that has come at a time when there is a dire need to modernize the spinning units in Tamil Nadu to have a level playing field and compete with other States and globally.

During this meeting the delegation had highlighted the current plight of the textile industry in the country, particularly in the State. The huge incentives offered by other competing States, market slowdown due to poor demand, inadequate labour availability, etc., are making the sector go through a difficult phase, they shared.

The delegation appreciated the Government for immediately allocating Rs. 10 crores for the remaining period of FY 2024-25. The members said to the Chief Minister that fund allocation for open- end spinning and air jet/electro spinning would help these segments which account around 70% of the VSF yarn manufacturing and over 60% of recycled yarn production and thereby the downstream sectors in Erode and Karur regions.