In an attempt to give the textile industry a boost, the state government has decided to give a power subsidy of Rs 3 per unit to co-operative spinning mills for three years.
Officials from the textile department said that co-operative spinning mills are expected to set up solar power plants in their premises in three years. The concessions in power tariffs are not applicable for residential users, said an official, adding that the subsidy will be reviewed every year to reduce the overall financial burden.
Sources in the textile industry said that 90 co-operative spinning mills in the state are likely to benefit.
“A committee has been set up under the chairmanship of the textile director. It is in the process of formulating the criteria to decide the eligibility,” said an official, adding that the textile director would carry out random inspections to check whether the power is being used for the same purpose.
Apart from co-operative spinning mills, a power subsidy of Rs 2 per unit will be given to powerloom units and other textile processing units.
“The information about the power consumption and productions of the spinning mills and other textile units will be collected through global positioning system,” the official said.
In February, the state government approved a new textile policy for 2018-2023. A government resolution on giving the power subsidy was issued on Friday.
Welcoming the decision, Ashok Swami, president of the Maharashtra State Textile Mahasangh, said: “It will give a much-needed push to the industry. One of the major reasons for spinning mills to incur losses is the higher power tariffs in the state compared to the state.”
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines