September 8, 2026
Industry

Tamil Nadu To Modernise Six State-Run Textile Mills

The Tamil Nadu government plans to modernise six spinning mills operated by the State, with an estimated investment of Rs 12 crore, Minister for Handlooms, Textiles and Khadi Vijay Balaji said.

The modernisation programme will focus on upgrading the mills to improve their operational efficiency and production capabilities. The government is also planning to install a windmill to meet part of the mills’ captive power requirements. The overall investment for the modernisation and renewable energy initiative is estimated at around Rs 20 crore.

The upgraded mills are expected to create employment opportunities for local youth while strengthening the State’s yarn production capacity. A portion of the yarn produced by these mills will be utilised for the government’s free dhoti and saree distribution scheme.

The State government is also working on measures to promote handwoven products and create a stronger niche market for traditional textiles produced by Tamil Nadu’s handloom sector. The initiatives are aimed at increasing the visibility and market reach of handloom products while providing greater support to weavers.

Under the free dhoti and saree scheme, handloom weavers participating in the programme will receive a 10% increase in dearness allowance and wages. The government is also considering an increase in wages for powerloom workers involved in the scheme.

Powerloom societies play an important role in the programme, with more than 80% of the sarees and dhotis supplied under the scheme reportedly coming from the powerloom sector. Improving wages for workers is expected to support the production of quality textiles and ensure a more sustainable supply chain for the scheme.

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