Indian Government Allocates ₹52 Crore Subsidy to Empower Ichalkaranji Powerloom Megacluster
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- Published: Wednesday, 24 January 2024 08:46
In a significant move to bolster the textile industry, the Indian government has sanctioned a subsidy of approximately ₹52 crore for 400 textile processing units within the Ichalkaranji Powerloom Megacluster. This subsidy aims to facilitate the upgradation of existing machinery and the acquisition of new equipment.
Established in 2012 following an announcement in the central government's budget, the Ichalkaranji Powerloom Megacluster was envisioned as a hub for world-class facilities dedicated to textile processing. The clustering of textile units within the megacluster aimed to elevate the production of high-quality yarn and fabric.
However, in recent years, the megacluster encountered various challenges, prompting a panel of experts to advocate for funds to modernize the powerlooms. Responding to this need, the state cabinet made the decision to grant a capital subsidy to the textile units within the megacluster.
According to Ichalkaranji-based textile expert Vinay Mahajan, the government's policy traditionally provided a 15% subsidy sanctioned in three installments for various processing units. In this instance, the government has revised the rule, approving a substantial capital subsidy of 45% in a single installment. This subsidy will support the upgrading of machinery and the expansion of units within the megacluster.
The Ichalkaranji Powerloom Megacluster boasts a total processing capacity of 2.25 lakh meters of fabric, with the ability to dye two tonnes of fabric yarn and 27 tonnes of warping and sizing daily. The subsidy is anticipated to enhance this capacity, enabling the megacluster to better cater to the needs of local garment makers.
Ichalkaranji, renowned for its century-old history of garment making, holds a unique position despite the absence of cotton cultivation in the region. Cotton is sourced from Vidharbha and Gujarat, undergoing various stages to produce high-quality garments. With the megacluster's upgraded capabilities, it is poised to further contribute to the textile industry, leveraging its status as the region with the highest number of powerlooms in the state.