Government Schemes and Programs

Ministry of Textile – Schemes and Programs

Ministry of Textile

About Ministry

The Ministry of Textiles is an Indian government national agency responsible for the formulation of policy, planning, development, export promotion and regulation of the textile industry in India. This includes all natural, artificial, and cellulosic fibers that go into the making of textiles, clothing and Handicrafts.

Ministry of Textile Schemes, 'SAMARTH', POWERTEX INDIA SCHEME, SCHEME FOR INTEGRATED TEXTILE PARK, ATUFS, SAATHI, etc., Govt Scheme Notes all ministries...



    • To provide financial assistance to a group of entrepreneurs to establish state-of-the-art infrastructure facilities in a cluster for setting up their textile units, conforming to international environmental and social standards and thereby mobilize private investment in the textile sector and generate fresh employment opportunities.
Salient Features
    • The Scheme targets industrial clusters and locations with high growth potential, which require strategic interventions for developing world-class infrastructure support.
    • An ITP under the scheme should preferably have 25 integrated units with components like Land (registered under the name of SPV), common infrastructure (compound, road, drainage, electricty, etc), buildings for common facilities (creche, canteen, laboratories, etc), and factory buildings for production purposes.
    • The total project cost shall be funded through a mix of Equity/Grant – from the Ministry of Textiles, State Government, State Industrial Development Corporation, Industry, Project Management Consultant and Loan – from Banks/ Financial Institutions.
    • The Government support under the Scheme by way of Grant or Equity will be limited to 40% (90% for first two projects in N.E states and J&K) of the project cost subject to a ceiling of Rs. 40 crore.
    • The combined equity stake of GOI/State Government/State Industrial Development Corporation, if any, should not exceed 49%.
    • The release of GoI assistance to the SPV shall be done in 3 (three) installments in the ratio of 30:40:30 depending upon fulfillment of terms and conditions.
    • Each project will normally be completed in 3 years from the date of release of the first installment of government grant. (Delays can lead to cancellation of project and imposition of penalty).
    • The ITPs can also get benefits from Amended Technology Upgradation Fund Scheme (ATUFS), SAMARTH, etc.



    • to improve the productivity and quality of silk through R&D intervention.
    • to promote improved cross-breed silk and the import substitute Bivoltine silk so that Bivoltine silk production in India enhances to such a level that raw silk imports become nil by 2022 thereby making India self-sufficient in silk.
    • To increase productive employment from 85 lakhs to 1 crore persons by 2020.
Salient Features
    • It is a central sector scheme implemented by Ministry of Textile through Central Silk Board.
    • The Scheme has four components
      1. Research & Development (R&D), Training, Transfer of Technology and IT Initiatives
      2. Seed Organizations and farmers extenson centres
      3. Coordination and Market Development for seed, yarn and silk products and
      4. Quality Certification System (QCS)
    • The implementation strategy is convergence based at the State level with the schemes of other Ministers like MGNREGS of Rural Development, RKVY & PMKSY of Ministry of Agriculture, for maximizing benefits.
    • Reputed organizations like IITs, CSIR, IISc and international research institutes on Sericulture in Japan, China, Bulgaria etc. will collaborate in R&D and technological advancements.
    • It will provide livelihood opportunities for women, those belonging to SCs and STs, and other weaker sections of the society across the country, including those from Left-Wing Extremism affected areas and North Eastern Region.
    • Brand Promotion of Indian silk will be encouraged through quality certification by Silk Mark in the domestic as well as Export market.



    • To provide financial assistance to economically weaker low-end powerloom units for their modernisation and Infrastructure development.
    • To improve quality and productivity of the fabrics being produced and enable them to face the competition in domestic and international markets.
    • To boost cluster-based development
    • Organize Buyer-Seller Meets and Reverse Buyer-Seller Meets to promote market for powerloom product.
    • To avoid middle man/local supplier brokerage charge on sales of yarn.
    • To give thrust to renewable energy (solar).
Salient Features
    • It is a comprehensive scheme for powerloom sector development which aims to boost common infrastructure and modernisation of the powerloom sector in the country.
    • It has nine major components –
      1. In-situ Upgradation of Plain Powerlooms,
      2. Group Workshed Scheme (GWS),
      3. Yarn Bank Scheme,
      4. PM Credit Scheme,
      5. Solar Energy Scheme,
      6. Common Facility Centre (CFC),
      7. Tex Venture Capital Fund,
      8. Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes, and
      9. Grant-in-Aid and Modernisation & Upgradation of Powerloom Service Centres (PSCs)
    • The two major schemes are –
      1. Pradhan Mantri Credit Scheme (PMCS) for powerloom weavers and
      2. Solar energy scheme for powerlooms.
    • PMCS for power looms –¬†financial assistance (including margin money subsidy and interest reimbursement) will be given as against the credit facility under Pradhan Mantri Mudra Yojana and under Stand-Up India to SC/ST/Women entrepreneurs of the decentralised power loom units.
    • There is also a provision of universal insurance to the powerloom workers (18-59 years age) in case of natural death, accidental death and partial / permanent disability due to accident.



    • to provide demand driven, placement oriented NSQF (National Skills Qualification Framework) Compliant skilling programme to incentivize organized textile and related sectors excluding Spinning and Weaving.
    • to promote skilling and skill up-gradation in the traditional sectors of Handlooms, Handicrafts, Sericulture and Jute
    • to provide Sustainable livelihood to all sections of the society across the country via wage or self-employment.
    • 10 Lakh people (9 lakh in Organised and 1 lakh in traditional sector)
    • all sections of the society across the country including rural, remote, LWE affected, North East, J&K, women through skill development and placement.
Salient Features
    • It is a skill development scheme covering the entire value chain of the textile sector excluding Spinning & Weaving in organized Sector to be implemented from 2017-18 to 2019-20
    • Skill gap and skilling requirements will be assessed and skills will be imparted accordingly.
    • In addition to domain specific hard skills, the program shall also provide 30 hours of soft skills.
    • Trainees will be assessed and certified by an accredited Assessment Agency.
    • There shall be placement guarantee of the 70% successful trainees (for courses in organised sector, all 70% have to be placed in wage employment, while for courses in traditional sector, atleast 50% are to be placed in wage employment)
    • Post Placement tracking will be mandatory under the scheme.



    • To promote Ease of doing Business in the country and to achieve the vision of general employment and promoting exports through Make in India and Zero Effect and Zero Defect in manufacturing.
    • To facilitate augmentation of investment, productivity, quality, employment, exports along with import substitution in textile industry and to indirectly promote investment in the textile machinery manufacturing.
Salient Features
    • It is a credit-linked Central Sector Scheme under Ministry of Textile.
    • There is a provision of one-time capital subsidy for eligible benchmarked machinery at the rate of 15% for garmenting and technical textiles segments with a cap of Rs. 30 crore and at the rate of 10% for weaving, processing, jute, silk and handloom segments with a cap of Rs. 20 crore.
    • Subsidy is given to the units/entities through nodal financial institutions and not through the state govt.
    • It covers Capital Investment Subsidy (CIS), while earlier schemes of TUFS had provisions both for interest reimbursement as well as Capital Subsidy.
    • ATUFS is targeted towards focused segments like garmenting, and the segments which have achieved desired level of modernization like spinning etc. have been excluded.





Objectives & Features

SAATHI (Sustainable and Accelerated Adoption of Efficient Textiles Technology to Help Small Scale Industries)


  • It was launched jointly by Ministry of Textile and Ministry of Power to provide energy-efficient powerlooms, motors and rapier kits to small and medium powerloom units at no upfront cost.

Pushtaini Hunar Vikas Yojana


  • It was launched at Institute of Carpet Technology, Badohi to impart technical and soft-skills training to weavers from traditional carpet-weaving families.

Deendayal Hastkala Sankul


  • It is a trade facilitation centre for handicrafts at Varanasi which would provide world-class marketing facilities to the weavers and artisans and would also boost the tourism potential of Varanasi.




To read and learn about Government Schemes and Programs related to other Ministries, Click Here. (Notes on all Government Ministries Schemes and Programs)

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