In Tamil Nadu, a special program for tech textiles was announced
The Tamil Nadu government has unveiled a groundbreaking special program to boost the technical textiles sector, aiming to position the state as a national leader in this emerging field. This initiative focuses on driving investment, innovation, and job creation with a series of targeted subsidies and incentives for manufacturers.
Under the scheme, a 25% capital subsidy will be provided for new projects or expansions related to technical textiles, significantly higher than the previous rate of 15%. Eligible sectors include the manufacturing of man-made fiber (MMF) yarn from recycled materials, MMF fabric, and technical textile products. To qualify, companies must meet minimum investment thresholds of ₹50-100 crore, depending on the category.
The program also offers manufacturers a choice between a special capital subsidy disbursed over 10 years or a turnover-based subsidy linked to employment generation. Projects creating between 500 to 2,000 jobs are eligible for a 2.5% annual turnover subsidy, while those exceeding 2,000 jobs can claim up to 4%.
To support technological advancements, a 6% interest subvention scheme for the spinning sector has also been introduced, with ₹10 crore allocated for the fiscal year 2024-25.
This initiative is part of Tamil Nadu’s broader strategy to lead in sustainable and innovative textiles, leveraging its existing strengths as a textile powerhouse. The program is expected to attract significant investments, enhance export potential, and generate thousands of jobs, further cementing Tamil Nadu’s reputation as a hub for cutting-edge textile manufacturing.
