• POWERTEX INDIA is a Scheme in the area of POWER LOOM Textile sector. Many old schemes in the area of power loom have been upgraded and brought under POWERTEX.
  • You must know that Indian Textile industry can be divided into:
  1. Centralized/organized sector – This includes Mills.
  2. Decentralised/ unorganized -Handloom (handmade textile products) and Power loom (machine made textile Products).
Quick glance on the Power loom Sector of India.
  • According to a power loom survey carried out in 2013, there are 24.86 lakh power looms in the decentralized sector, out of which 1.03 lakh (4.1%) are shuttleless looms (modern high-tech Power loom).
  • Power looms accounts for more than 57% of the total cloth production and provides employment to nearly 44.86 lakh persons.
  • Around 60% of fabrics and garments manufactured by powerlooms are exported.
  • As far as Cotton textile is concerned the share of different sources of Cloth production in descending can be arranged as :
Powerloom  >  Handloom  >  Mills. NEED OF POWERTEX.
  • Power loom sector in India is still not well developed. The types of machine used in India are outdated on global level.
  • Weavers are still not able to get what they deserve in terms of Prices of their production, due to large number of Middlemen.
  • Products are not properly branded and marketed in Domestic and international Market.
  • In many remote areas electricity is available to run a power loom but not on 24 X7 bases.
  • Credit availability is still low.
  • Due to poor awareness level of Weavers, they are not able to get benefits of new opportunities like – E commerce (Amazon or Flipkart (now Wal-Mart)).

                                  POWERTEX – Components.

  1. In-situ Upgradation of Plain Powerlooms.
  2. Group Workshed Scheme (GWS)
  3. Yarn Bank Scheme
  4. Common Facility Centre (CFC).
  5. Pradhan Mantri Credit Scheme for Powerloom Weavers.
  6. Solar Energy Scheme for Powerlooms.
  7. Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes.
  8. Tex Venture Capital Fund.
  9. Grant-in-Aid and Modernisation & Upgradation of Powerloom Service Centres (PSCs).
1.In-situ Upgradation of Plain Powerlooms.  
OBJECTIVES. To provide financial assistance to economically weaker low-end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits. To improve quality and productivity of the fabrics being produced and enable them to face the competition in domestic and international markets.
ELIGIBILITY. Powerloom units having upto 8 Looms.
Subsidy Plan. Subsidies will be given for :
  General (50%) Scheduled Caste. (75%). Scheduled Tribe. (90%)
Plain to semi automatic Loom.   Rs. 20,000 Rs. 30,000 Rs. 36,000
Semi Automatic to Shuttleless Loom. Rs. 25,000 Rs. 37,500 Rs. 45,000
Plain to Shuttleless Loom. Rs. 45,000 Rs. 67,500 Rs. 81,000
  Note: Do not try to cram the chart. If You are Civil services Aspirant, the Only thing important for you is that it has different subsidy plan for different categories.
  • To organise powerloom units in a cluster.
  • To provide improved working condition in terms of more space & work environment.
  • To Improve the work efficiency to enhance their competitiveness in the global market.
  • To establish worksheds for shuttleless looms in an existing or new cluster.


  • State Government (or) its agency.
  •  A registered Co-operative Society.
  •  A Company set-up under the Companies Act, 1956.
  • Limited Liability Partnership firms.
  • The local powerloom association.
  •  To avoid middle man/ local supplier’s brokerage charge on sales of yarn.
  • To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.
  •        Registered Co-operative Society.
  • Trust.
  • Company set-up under the Companies Act, 1956.
  • Firm set-up under the Limited Liability Partnership.
  • ·     Government shall provide interest free corpus fund of maximum Rs 200 Lakh per yarn bank to SPV/Consortium.
 4.Common Facility Centre (CFC).  
·         OBJECTIVES
  •       To provide financial assistance for setting-up of Common Facility Centres such as: design centre / studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory, workers’ residential space, common pre-weaving facilities viz. yarn dyeing, warping & sizing, twisting etc., and post weaving facilities viz. processing, etc.,
  •  State Government (or) its agency.
  • Registered Co-operative Society.
  • Trust.
  • Company set-up under the Companies Act, 1956.
  • Firm set-up under the Limited Liability Partnership.
  • Government shall provide subsidy of maximum Rs 200 Lakh per CFC.
 5.Pradhan Mantri Credit Scheme for Powerloom Weavers.
  •   To provide financial assistance viz. Margin Money Subsidy and interest reimbursement as against the credit facility (term loan) availed under Pradhan Mantri Mudra Yojana (PMMY) to the decentralized powerloom units / weavers.
  • Margin Money Subsidy as against the credit facility (term loan) availed under Stand-up India scheme by the SC, ST & Women Entrepreneur of the decentralized powerloom units / weavers to meet their credit requirements such as for investment needs (Term Loan) and for working capital etc.
  • Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity.
  •  Margin Money Subsidy @ 20% of project cost with a ceiling of Rs 1 lakh.
  • Interest Subvention @ 6% per year both for working capital and term loan upto Rs 10 lakh for
  • maximum period of 5 years.
  •  To provide financial assistance/capital subsidy for installation of On Grid Solar Photo Voltaic Plant (without Battery back up) and Off Grid Solar Photo Voltaic Plant (with Battery back-up) by small powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.
  •  Powerloom units having upto 8 Looms.
  •   Powerloom permit / Acknowledgment issued by the concerned Regional Office of the Textile Commissioner.
  •  Promote awareness and to trigger the developmental mode of decentralized powerloom sector.
  • Disseminate information about the modalities and benefits of schemes, programmes.
  • Create an enabling environment for publicity.
  • Give wide publicity, including event based publicity etc. through electronic, print, film media, multimedia, to the Powerloom schemes, programmes.
  • Encourage voluntary action for ensuring effective implementation of schemes, programmes.
  • Organize Buyer-Seller Meets and Reverse Buyer-Seller Meets to promote market for powerloom product.
  •  Help Centre.
  • Disseminate information on Government Schemes of Powerlooms.
  • Facilitating/ Liaison with Banks for Powerloom Entrepreneurs.
  • Dedicated helpline to Powerloom Weavers.
  • User friendly customer web portal.
  • Registration of powerloom weavers to avail facility/ benefits.
  • SMS alerts on new developments and initiatives.
  • Entrepreneur Cell, Design and Technical Advancement
  • IT – Development of online-portal / mobile application in respect of schemes implemented by Government of India.
  • Awareness and Market Development Programmes : Seminars/Workshops, Buyer-Seller Meets, International events like Reverse Buyer-Seller Meets, E-platform for marketing of Powerloom products, Exposure Visit of Weavers and Conducting studies, surveys and evaluation of programmes/ Schemes on the special needs.
  • Publicity in Electronic and Print Media.
  •  SIDBI Venture Capital Fund Ltd., (SVCL) invests on behalf of Ministry of Textiles in the form of equity in MSMEs to kick start an enterprise/ expansion.
  • Investments will typically be in innovative private powerloom MSME companies.
  • Maximum 50% of the project cost with a ceiling of Rs 3 crore is invested by SVCL.
  • The equity shares and / or instruments convertible into equity of Textile Micro and Small Enterprises.
  • Innovative private MSE companies involved in manufacturing and services in powerloom sector.
  • New products and technologies or innovative business model which have the potential to bring superior value proposition to the customers will be given preference.
  • Companies undertaking expansions which already have sound financial performance are also encompassed in the scope of the fund.
  • 15 Powerloom Service Centres under Office of the Textile Commissioner (Tx.C), 26 TextileResearch Associations (TRAs) and 6 State Govt. will offer various services like training, sample testing, design development, consultancy, conducting seminar/ workshop, etc. to the powerloom sector on behalf of the Government.
  • Grant-in-Aid (GIA) is provided to the PSCs of TRAs/ State Govt. agencies for the recurring expenses for running the PSCs.
  • The Govt. assistance will be provided for modernization and upgrading the Powerloom Service Centres with the facilities which are required in the cluster. This would include improving testing facilities and also installing modern looms to create awareness of the latest available technologies and provide training. Further, the Powerloom Service Centres would also be provided with Preparatory machines, Testing instruments, Sewing machines for Garment and Apparel, Embroidery Machines, Design Development facilities etc.

About the author: Aman Kumar

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