Textile mills in Tamil Nadu have urged the Union government to include the spinning and cotton ginning sectors under the Textile Expansion and Employment Mission (TEEM).

The scheme, a flagship initiative launched by the Union government, aims to modernise the traditional textile cluster and encourage investments. According to industry sources in Coimbatore, the cost of production of one kg yarn in a modern textile mill is ₹1.2 as against ₹1.8 in a 10-year-old mill.

Except for the cost of the raw material, both Bangladesh and Vietnam compete with India in yarn production costs. Technology helps Indian textile mills achieve 25% higher productivity and 20% better quality, and reduce power consumption by 15%, they say.

Almost 26% of India’s installed spindles are over 25 years old and 21% are 16-20 years old. Hence, it is essential to support the textile mills modernise and remain cost competitive. The government should look at time-bound and structured modernisation programme for textile mills under the TEEM scheme. It should provide at least 20% capital subsidy and 7% interest subsidy for five years to help the mills modernise, the sources added.