Boosting Solar Adoption: Maharashtra’s Initiatives for Textile Businesses

Introduction:

The Maharashtra state government is taking significant steps to encourage textile businesses within the state to embrace solar projects. These initiatives offer tangible financial support, including a substantial capital subsidy, to both non-cooperative and cooperative textile businesses.

The textile industry plays a crucial role in Maharashtra’s economy, contributing significantly, with 2.3% to the state’s GDP, 13% to its industrial production, and 12% to its exports. Impressively, Maharashtra is a major yarn producer, producing a remarkable 272 million kilograms during the 2022-23 fiscal year, amounting to approximately 10.4% of the country’s total textile and apparel production.

Incentives:

The Government has rolled out incentives that are strategically crafted to promote the adoption of renewable energy sources within the textile industry, while simultaneously reducing the state’s dependence on conventional energy sources. Here is an overview of the key incentives that are introduced:

• Capital Subsidy: This is determined based on the lower of the following factors:
  • 12/24 months of electricity subsidy.
  • The cost of setting up a solar power project with a maximum capacity of 4MW.
  • A sector-specific capped amount.

Note: The Non-cooperative textile businesses can access a capital subsidy of up to 48 million rupees, while cooperative textile businesses stand to gain a higher capital subsidy of 96 million rupees.

• Electricity Subsidy: The electricity subsidy rates vary depending on the type and size of the textile business. Here’s the breakdown:
  • Power looms: 3.77 rupees per kWh (for units up to 20 kW) or 3.4 rupees per kWh (for units above 20 kW).
  • Knitting, Hosiery & Garments: 3.77 rupees per kWh (for units up to 20 kW) or 3.4 rupees per kWh (for units above 20 kW).
  • Co-Operative Spinning Mills: 3.00 rupees per kWh (for units above 20 kW).
  • Non-Co-Operative Spinning Mills: 2.00 rupees per kWh (for units above 20 kW).
  • Process Industry & All Other Textile Units: 2.00 rupees per kWh (for units above 107 HP) or 3.00 rupees per kWh (for units at 11 kV, 22 kV, 33 kV).
  • HT (High Tension): 2.00 rupees per kWh (for Co-Operative Soot Girni, Non-Co-Operative Spinning Mills, Knitting, Hosiery & Garments, Process Industry & All Other Textile Units) or 3.00 rupees per kWh (for 66 kV & above).

Application Process:

To be eligible for this subsidy, your solar project must have a capacity of up to 4MW & should become operational within two years from the date of approval. The subsidy is disbursed after the project’s commissioning.  in two equal instalments, with a gap of 6 months.

The government has set specific eligibility criteria, including:

• The solar project must be located on the premises of the textile business.
• The textile business must have been in operation for at least one year before applying for the subsidy.
• The textile business must commit to maintaining the solar project for a period of five years from the date of commissioning.

To apply for this subsidy, your textile business must submit an application to the Maharashtra Energy Development Agency (MEDA). The application should include essential documents such as a copy of the textile business’s registration certificate, a copy of its electricity bill, and a comprehensive project report for the solar project. MEDA will review the application within 30 days and provide approval or rejection accordingly. If approved, MEDA will disburse the subsidy in two equal instalments, as previously outlined.

Additional Sustainable Initiatives:

In addition to the capital subsidy for solar projects, the government is also extending further sustainable initiatives to strengthen the textile industry:

• A generous 50% capital subsidy for establishing Effluent Treatment Plants (ETPs) and Common Effluent Treatment Plants (CETPs) in the textile processing sector.
• A substantial 50% capital subsidy for adopting Zero Liquid Discharge (ZLD) technology in the textile processing sector.
• Furthermore, there’s a subsidy of 50% or 20 million rupees (whichever is lower) for 12 new projects exclusively dedicated to recycling old textile products.

Conclusion:

For textile businesses in Maharashtra, these initiatives represent a golden opportunity to harness solar energy, achieve significant cost savings, and contribute to a greener, more sustainable future, all while enjoying substantial financial support from the government.