Tamil Nadu Open End Spinning Mills Industry requests Union Ministry for Lowering ceiling on production concession scheme

OSMA said lowering ceiling on production concession scheme (PLI) to Rs 10 crore and adding recyclable pet bottles, garment waste and waste cotton yarn will add 50,000 new jobs


Coimbatore: Tamil Nadu Open End Spinning Mills (OSMA) has thanked the Central Government for approving the Manufacturing Concession Scheme (PLI).

However, considering the growth of MSMEs, which are the backbone of the country's industrial growth, the industry says that the reduction in the investment ceiling and the inclusion of Open End Spinning Mills products in the scheme will provide employment to more than 50,000 new people.

Tamil Nadu Open End Spinning Mills (OSMA) executives Arulmozhi, Jayapal said, "Yarn production using waste cotton and used PET bottles from spinning mills, as well as recycled materials including Garments Waste, is carried out at open end spinning mills. This yarn is used to make a variety of textiles, including jeans and kitchenware. There are 550 open end spinning mills operating across Tamil Nadu. Of these, up to three lakh people are directly and indirectly employed.

The Central Government has approved the Manufacturing Concession Scheme (PLI) for the development of the textile industry. Our association would like to express our gratitude. The ceiling for the scheme is currently set at Rs 100 crore. This has made it impossible for companies belonging to the MSME segment to avail themselves."

The Central Government is implementing this scheme with the objective of increasing employment in secondary cities and rural areas. MSMEs are the backbone of the country's economic growth. With this in mind, if the investment ceiling in the scheme is reduced to Rs. 10 crore, a large number of MSME entrepreneurs from rural areas will be interested in starting a business and thus increasing employment.

Including recycled pet bottles, garment waste and waste cotton yarn used in Open End Spinning Mills will add more than 50,000 new jobs to the Open End Spinning Mill industry alone. They urged the Union Minister of Textiles, the Minister of MSMEs and the Minister of Finance to make this request on behalf of their association.

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