Development of Powerloom Sector in the Country
Centre is implementing the Venture Capital Fund for Powerloom and Allied Products and Services (TEX-Fund), as a component under PowerTex India scheme.
• The powerloom industry has traditionally been a cornerstone for the Indian economy in terms of foreign exchange earnings and employment.
• Powerlooms contribute around 70 per cent of the total jobs in the textiles industry, employing around 4.4 million people.
• The powerloom industry is equipped with approximately 2.701 million registered looms producing 54,000 square meter fabrics, which are concentrated in clusters across Erode, Salem, Madurai, Ichalkarnaji, Solapur, Bhiwandi, Bhilwara and Malegaon, among others.
The Government is implementing the Venture Capital Fund for Powerloom and Allied Products and Services (TEX-Fund), as a component under PowerTex India scheme w.e.f. 01.04.2017.
The TEX Fund has a minimum corpus of Rs.35 crores with Government of India’s contribution of Rs.24.50 crores and the Small Industries Development Bank of India (SIDBI) has a minimum contribution of Rs.10.50 crores.
SIDBI Venture Capital Limited (SVCL) is the Investment Manager of the TEX-Fund.
The TEX-Fund is aimed at providing equity investment to micro and small enterprises in the powerloom sector to boost innovation in the industry by creation of brands and generation of intellectual property and enable development of the Powerloom Sector and allied activities.
PowerTex India Scheme
PowerTex India is an all-inclusive scheme that’s made for the development of the power loom sector which further addresses the unheard needs of the power loom sector.
The Union Textiles Minister had launched the scheme for developing the knitting and knitwear sector under the PowerTex India Scheme.
This scheme aims at boosting the already existing infrastructure and encourage the adoption of modernisation in the power loom sector at an even larger scale.
Components of ThePowerTex India Scheme:
i. In-situ Upgradation of Plain Power looms.
ii. Group Workshed Scheme.
iii. Yarn Bank Scheme.
iv. Common Facility Centre.
v. Pradhan Mantri Credit Scheme for Power looms.
vi. Solar Energy Scheme for Power looms.
vii. Market Development, Facilitation, IT, Awareness, and Publicity for Power loom Schemes.
viii. Tex Venture Capital Fund.
ix. Grant-in-Aid and Modernisation& Upgradation of Power loom Service Centres (PSCs).