TexMin launches scheme to develop knitting sector

The Union Textile Ministry has launched a comprehensive scheme for the development of the knitwear sector under PowerTex India. Apart from financial incentives, the two key interesting elements are yarn bank and financial assistance for the solar energy scheme. The scheme was launched simultaneously in three major clusters, Tiruppur, Ludhiana, and Kolkata.

Industry representatives said the scheme would help in achieving the vision target of Rs 1 trillion by 2022. The sector accounts for 27 per cent of the total cloth production and about 15 per cent of the knitted fabric is exported.

Raja M Shanmugham, President, Tiruppur Exporters Association said the scheme would be highly supportive through financial assistance and benefits to the knitting and knitwear MSMEs in Tiruppur and pointed out that this will also encourage new entrepreneurs to set up units.

The yarn bank scheme for knitting and knitwear units will provide an interest-free corpus fund of a maximum of up to Rs 2 crore per yarn bank to a Special Purpose Vehicle (SPV). The bank would enable small knitting and knitwear units to purchase the yarn at a wholesale rate and in large quantities by avoiding middle man/ local supplier’s charges.