The objectives of providing power subsidy under New Textile Policy are as follows:
- To generate new employment opportunitiesin the textile sector.
- To increase the share of exportsin the textile sector and make it more competitive.
- To build an internationally competitive textile industry in the State of Maharashtra.
Eligibility Criteria
The following are the eligibility criteria required to obtain subsidy under the scheme:
- The units having textile unit registration certificate are eligible to apply for the scheme.
- The subsidy provided under the scheme applies only to the new enterprise.
Subsidy for Textile Units
- A subsidy of Rs.3 per unit will be provided to co-operative spinning mills for three years. In these three years, the units are required to set up non- conventional power projects to satisfy their power needs. The restriction of 1MW is removed from the net metering scheme. The subsidy fo Rs.3 per unit will be renewed every year and will be reduced to maintain the overall annual subsidy of state budget within Rs.150 crores.
- A subsidy amount of Rs.2 per unit will be provided to powerlooms using power above 200 HP. The subsidy is given to powerloom units using less than 27 HP, 27 to 200 HP and more than 200 HP, will also be applicable to garment, knitting and hosiery units.
- A subsidy amount of Rs.2 per unit will be provided to spinning mills except for processing units, co-operative spinning mills and all other textile units using more than 107 HP power.
Note: It is observed that the electricity rates for units using up to 27 HP are more than the applicable rates for units using 27 to 107 HP. In order to eliminate this disparity, the necessary steps will be taken.