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Texprocil hails new govt initiative SAATHI for powerlooms
Nov '17
Texprocil hails new govt initiative SAATHI for powerlooms
The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the new initiative of the ministries of textiles and power called Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries (SAATHI). It feels the initiative may benefit 25 lakh powerloom units that produce 57 per cent of the total cloth in the country.

Under this initiative announced on October 24, Energy Efficiency Services Limited (EESL), a public sector entity under the power ministry, will procure energy-efficient powerlooms, motors and Rapier kits in bulk and provide them to small and medium powerloom units at no upfront cost, according to a power ministry press release.

The use of efficient equipment would result in energy savings and cost savings to the unit owner who would in turn repay in instalments to EESL over a four- to five-year period. There are 24.86 lakh powerloom units in India, most of which use obsolete technology.

Texprocil chairman Ujwal Lahoti said that the provision to repay in instalments is a novel idea as it will not burden the small powerloom owners. The export of fabrics can be increased substantially if they are treated at par with garments and made-ups in terms of incentives, a Texprocil press statement quoted him as saying.

He urged the government to explore extending the refund of state levies (ROSL) benefit of above 5 per cent to the fabric sector. (DS)

Fibre2Fashion News Desk – India

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