Southern India Mills Association (SIMA) has thanked Union Textiles Minister Smriti Zubin Irani for launching Power Tex India Scheme and considering most of the proposals of the power loom sector.

The scheme was launched at powerloom centres across the country, including Erode in Tamil Nadu through video conference.

The power loom sector has been facing challenges as a result of sluggish global and domestic market conditions. Though capacity was raised by 12 per cent over seven years, fabric production went up by just 2.4 per cent, SIMA chairman M Senthilkumar said in a statement.

After attending the Erode function, inaugurated by Additional Secretary in the Ministry of Textiles Pusha Subrahmanyam, Senthilkumar said the scheme would greatly benefit the power loom sector to improve competitiveness and supply quality fabrics at competitive rates.

He lauded the solar power plant scheme giving 50 to 90 per cent subsidy, which would give a great relief to Maharashtra and Tamil Nadu which account for over 75 per cent of the power looms in the country.

Benefits under Mudra Yarn Banking Scheme will provide interest-free corpus fund of maximum Rs 200 lakh per yarn bank, he said. The Pradhan Manthri Credit Scheme for power loom weavers, providing 20 per cent margin money with a ceiling of Rs 1 lakh, interest subvention and term loan up to Rs10 lakh was a welcome move.

He was also praise for the assistance given for women entrepreneurs under Stand Up India Scheme, providing 25 per cent margin money subsidy with a ceiling of Rs 25 lakh.

Senthilkumar, former chairman of Powerloom Development and Export Promotion Council, appealed to all powerloom weavers to fully utilise the various benefits announced under the scheme and meet the fabric demands of the downstream sectors and stay globally competitive.