TexMin increases yarn banks’ corpus fund

Powerloom weavers in Pandesara and Ved Road industrial areas of Surat, Gujarat will be able to procure yarn-raw material for the polyester fabric at concessional rates with the Ministry of Textiles increasing the corpus fund for India’s first yarn banks in the city from Rs 1 crore to Rs 2 crore. 

At the recently announced Power Tex India—a Central Government package scheme for powerloom sector—the corpus fund for the yarn banks in Surat has been increased to Rs 2 crore each and bank guarantee reduced from 50 per cent to 25 per cent.

Two years ago, the Central Government had sanctioned two yarn banks in the powerloom clusters of Ved Road and Pandesara, country’s largest man-made fabric (MMF) centre. The Ministry of Textiles had formed two SPVs—Ved Road Art Silk Small Scale Co-operative Federation and Pandesara Weavers Co-operative Society—for setting up of the yarn banks.