Maharashtra Government Subsidy For The Spinning Sector

Cooperative Spinning Mills Co-operative spinning mills have been instrumental in initiating socio-economic changes in the State, by playing a significant role in rural industrialization and providing additional job opportunities to the workforce in rural areas. As many as 140 co-operative spinning mills in the State have been given financial assistance of INR 2046.67 crore by way of share capital. To further strengthen the sector and encourage new co-operative units in various parts of the State, the following incentives will be provided to the cooperative spinning mills


The incentives disbursed to the cooperative spinning sector will vary as per the Zones

  1. Share Capital:

For the new cooperative units under this policy, ratio of self-equity, government equity and loan from financial institutions will be as per Zones in Table

ZonesSelf-equityGovernment equityLoan from financial institutions
Zone 154550
Zone 2104050
Zone 3153550
Zone 4203050

2.Electricity Subsidy: The rates for the electricity subsidy will be as follows

ZonesElectricity Subsidy
Zone 1  As per Annexure
Zone 2
Zone 3
Zone 4

In the case of electricity subsidy for existing units, subsidy will be provided as per the rates given in Annexure A for a period of 2 years only.

The guiding principles for the solar project for the existing units will be as followso

The DPR for solar plant shall be weighed and approved by Maharashtra Energy Development Agency (MEDA) or any other such agency decided by the Government from time to time. o

The capital subsidy (electricity subsidy for 24 months/ cost of the power plant up to maximum of 4MW/ capping of INR 9.6 crore, whichever is less) will be provided in 2 equal instalments (with a gap of 6 months between the instalments) post the operationalization of solar power plant.

Government Resolution No.: Policy 2023/C.R. 81/Tex-5 Page 12 of 46 iv. There will be a cap of INR 40 lakh per unit per month on the disbursement of monthly electricity subsidy.

v. For new units/ units undertaking expansion, units will include the cost of installation of solar power plant in the Detailed Project Report (DPR) and the capital subsidy will be calculated on the fixed capital investment (eligible plant and machinery and solar plant) up to maximum of 4 MW capacity.

 vi. Although Textile Units/Projects can establish solar plants of more than 4MW capacity, the entire financial burden for establishing capacity over 4MW shall be borne by the unit/project itself.

vii. In any case the total capacity of solar powerplant being established shall not exceed the approved load / contract demand of conventional energy.

Maharashtra Technology Upgradation Fund Scheme (MAHA-TUFS):

The scheme will facilitate the spinning units in augmenting investments, productivity, quality, employment and exports along with import substitution in the textile sector. The State will offer the following incentives to the eligible unit for reimbursement of Capital Investment Subsidy (CIS) for technology upgradation as per the following rates in various Zones

ZonesRate of Capital Investment Subsidy (CIS)
Zone 140% of the basic cost of eligible machinery or INR 25 crore, whichever is less
Zone 235% of the basic cost of eligible machinery or INR 20 crore, whichever is less
Zone 330% of the basic cost of eligible machinery or INR 15 crore, whichever is less
Zone 425% of the basic cost of eligible machinery or INR 10 crore, whichever is less

The units will be considered for technology upgradation under the MAHA Technology Upgradation Fund Scheme (Maha-TUFS), provided:

  1. The unit have completed 15 years of production on the existing machinery.
  2. The unit has a net positive worth.
  3. The unit uses clean energy
  4.  The unit has paid-back/ returned at least 50% of the Government share capital.
  5. The Detailed Project Report (DPR) under the MAHA-TUFS has been approved by the Committee formed by the state government.
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