Tamil Nadu on Saturday rolled out a special scheme for technical textiles (manufactured using natural as well as man-made fibers), man-made fiber (MMF) yarn from recycled products, MMF fabric, and apparel manufacturing in the State.
The special 2023 scheme is an extension of the TNIP 2021 and is applicable for new/expansion projects engaged in manufacturing.
For technical textiles (new/expansion), the minimum investment eligibility is ₹50 crore with a minimum employment generation of 50 jobs and a standard investment period of four years (in A, B, and C category districts). For MMF Fabric (new/expansion) the eligibility is ₹100 crore and 50 jobs and for apparel (new/extension), it is ₹100 crore and 2,000 jobs. There are schemes for units that are diversifying.
Special capital subsidy
In technical textiles, MMF yarn from recycled materials or MMF Fabric can avail a special capital subsidy of 15 per cent of EFA disbursed in equal annual installments over 10 years. The company can choose to avail the subsidy for technical textiles, MMF yarn from recycled materials & MMF fabric from the date of commercial production or upon achieving the minimum eligible investment (₹50 crore for technical textiles, ₹50 crore MMF yarn from recycled materials or ₹100 crore for MMF fabric) and minimum eligible employment of 50 jobs, whichever is later.
If the company chooses to avail the subsidy prior to the completion of the investment and employment commitment, it shall be disbursed in tranches corresponding to the cumulative investment made until then and subsequent tranches for actual annual incremental investment within the investment period.
Tamil Nadu has the largest number of textile factories in India (50 per cent of textile mills in India) and produces 40 per cent of total yarn in India. The State also exports around 20 per cent of Indian apparel exports- the highest among the Indian states.
The investment trend in technical textiles and MMF fabric is predominantly through diversification and apparel manufacturing is through forward integration; hence, the size of the potential projects is typically Sub-Large (greater than ₹50 crores and less than ₹300 crores), the scheme said.