Special Scheme in the
Spinning Sector

Technological Upgradation with 6% Interest Subvention

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About the Scheme

Technology Upgradation

Scheme for Technology upgradation shall mean obtaining of bank loan to procure and deploy machinery and spares of certain specifications in the Ring Frame, Open End Spinning Mills and Airjet Spinning Mills as approved by the Technical Evaluation and Monitoring Committee.

Interest subvention shall mean refund of 6% of the total interest charged by a banker on the loan extended to a spinning mill for technology upgradation.

Period of Operation
The scheme shall be operational from 2024 to 2033

Eligibility Criteria

Industry & Registration

  • All ring spinning, Open-End Spinning Mills and Airjet Spinning Mills registered under Indian Companies Act or Partnership Act in Tamil Nadu
  • A spinning mill can avail benefit under the scheme only once
  • Units who have availed other state government subsidies are not eligible

Machinery Requirements

  • Machineries and spares in spindles and rotors must be 15 years or older
  • Must be purchased directly from manufacturers or authorized agents
  • Second-hand machinery not eligible for interest subvention
  • Year of manufacture and details must be verifiable on machinery

Loan & Interest Terms

  • 6% interest reimbursement for 5 years (including 2 years moratorium)
  • Only Technical Committee approved machinery eligible for loans
  • Implementation period starts from initial loan disbursement

Documentation & Timeline

  • Only purchases after guidelines issuance are eligible
  • Purchase date as per commercial invoice will be considered
  • Bank loan must be obtained after Government Order date
  • All machinery must match benchmark specifications in annexure

Segments Covered

Every eligible individual entity will be paid an interest subsidy under the scheme as per the rate of 6% for 5 Years

Ring Spinning

  • Ring Spinning

Open-End Spinning

  • Open-End Spinning

Air Jet/Electro Spinning

  • Air Jet/Electro Spinning

Application Process

Submit Application
Initial Verification
Field Inspection
Technical Review
Approval
Disbursement

Guidelines

Submit your utilization details

Apply Now

Start your application process here

Check Status

Track your application progress

Regional Offices


Madurai Region
8 Districts
45+
Applicants
5.5Cr
Applied for
  • Kanniyakumari
  • Madurai
  • Ramanathapuram
  • Sivaganga
  • Tenkasi
  • Thoothukkudi
  • Tirunelveli
  • Virudhunagar
Salem Region
4 Districts
32+
Applicants
11.3Cr
Applied for
  • Salem
  • Namakkal
  • Dharmapuri
  • Krishnagiri
Tirupur Region
4 Districts
28+
Applicants
2.1 Cr
Applied for
  • Tirupur
  • Coimbatore
  • Erode
  • Nilgiris
Karur Region
4 Districts
25+
Applicants
1.6 Cr
Applied for
  • Karur
  • Trichy
  • Dindigul
  • Thanjavur

All districts in Tamil Nadu are mapped to these 4 regions for application processing