**Executive Summary**
The Ministry of Textiles issued a press release on February 13, 2026, outlining key initiatives taken by the Government to support spinning mills in the country. These initiatives focus on technology upgrades, raw material stabilization, financial assistance, infrastructure development, and workforce training. The document also includes state-wise data on the number of spinning mills in operation and other units up to 2021-22.
**Key Points / Main Content**
* **Technology Up-gradation and Modernization:**
* **Amended Technology Upgradation Fund Scheme (ATUFS):** Provides credit-linked Capital Investment Subsidies (CIS) to textile units.
* **Spinning Mill Modernization Schemes:** State-specific schemes offering interest subsidies for replacing older machinery.
* **Mini Textile Park Schemes:** Subsidies for developing infrastructure, buildings, and machinery for smaller units.
* **Raw Material Supply and Price Stabilization:**
* **Cotton Corporation of India (CCI) Support:** CCI directs sale of cotton stocks purchased under MSP to MSME spinning mills.
* **Special Sales/Discounts:** CCI offers discounts to MSME mills, cooperative sector mills, and Khadi industries.
* **Yarn Supply Scheme (YSS):** Ensures availability of raw materials at "mill gate prices" to handloom weavers.
* **Kasturi Cotton Initiative:** Focuses on branding, traceability, and certification to promote Indian cotton quality.
* **Financial Assistance and Incentives:**
* **Production Linked Incentive (PLI) Scheme:** Encourages production of high-value Man-Made Fiber (MMF) fabrics and technical textiles.
* **Rebate of State and Central Taxes and Levies (RoSCTL):** Provides tax rebates on exported garments and made-ups.
* **Interest Equalization Schemes:** Increased rates for pre- and post-shipment credit to support MSME exporters.
* **Special Package for Textiles (2016):** Includes measures like additional production subsidies under ATUFS, EPF contribution support, and tax concessions.
* **Infrastructure Development:**
* **PM-MITRA Parks:** Establishment of 7 Mega Integrated Textile Region and Apparel Parks.
* **Integrated Processing Development Scheme (IPDS):** Supports new and upgraded Common Effluent Treatment Plants (CETPs).
* **SAMARTH Scheme (Scheme for Capacity Building in Textile Sector):** Aims to provide demand-driven, placement-oriented training.
* **Data on Spinning Mills:** Presents a state-wise table showing the total number of factories, factories in operation, and "other" units (factories with assets but not production) for the years 2019-20, 2020-21, and 2021-22.
**Impact Analysis**
**Spinning Mills:**
* **Impact:** Benefit from technology upgrades, reduced raw material costs, financial assistance, improved infrastructure, and access to skilled labor.
* **Action Required:** Utilize available schemes to modernize, improve sustainability, enhance competitiveness, and train employees.
**MSME Exporters:**
* **Impact:** Enhanced access to pre- and post-shipment credit and tax rebates.
* **Action Required:** Take advantage of increased interest equalization rates and RoSCTL benefits to boost downstream demand for yarn.
**Handloom Weavers:**
* **Impact:** Ensured availability of raw materials at "mill gate prices" through the Yarn Supply Scheme.
* **Action Required:** Utilize readily available materials for improved production.
**Textile Industry Workforce:**
* **Impact:** Opportunities for skill development through the SAMARTH Scheme.
* **Action Required:** Participate in training programs to enhance employability and contribute to a skilled workforce.
**Cotton Farmers:**
* **Impact:** Benefits from the Kasturi Cotton Initiative.
* **Action Required:** Engage in cotton farming and harvesting.
**Annual Survey of Industries**
* **Impact:** Provides the data collection on the Factory Sector which extends to industrial units registered under the Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948.
* **Action Required:** N/A
Key Entities Referenced
Ministry of Textiles: Primary government body overseeing initiatives for spinning mills.
Amended Technology Upgradation Fund Scheme (ATUFS): Scheme providing credit-linked capital investment subsidies to textile units.
Production Linked Incentive (PLI) Scheme: Scheme encouraging the production of high-value man-made fiber fabrics and technical textiles.
Cotton Corporation of India (CCI): Entity directed to sell cotton stocks under MSP to MSME spinning mills.
Annual Survey of Industries (ASI): Source of data used in the document, covering the factory sector, as per the Factories Act, 1948.
Ministry of Textiles
INITIATIVES TO SUPPORT THE SPINNING MILLS
Posted On: 13 FEB 2026 2:28PM by PIB Delhi
As per Annual Survey of Industry, Ministry of Statistics & PI, State/UT-wise total number of spinning
mills, number of spinning mills in operation and others is attached below. The specific information on the
closure of the spinning mills is not available with the Ministry.
The key initiatives taken by the Government to support spinning mills in the country includes following:
1. Technology Up-gradation and Modernization:
i. Amended Technology Upgradation Fund Scheme (ATUFS) to provide credit-linked Capital
Investment Subsidies (CIS) to textile units for purchasing benchmarked machinery, helping mills
modernize and reduce their environmental footprint.
ii. Spinning Mill Modernization Schemes: State-specific initiatives, such as those in Tamil Nadu,
offer interest subsidies for replacing machinery older than five years.
iii. Mini Textile Park Schemes: Subsidies for developing infrastructure, buildings, and machinery for
smaller units.
2. Raw Material Supply and Price Stabilization:
i. Cotton Corporation of India (CCI) Support: The government directs CCI to sell cotton stocks
purchased under the Minimum Support Price (MSP) directly to MSME-category spinning mills to
ensure availability.
ii. Special Sales/Discounts: CCI offers discounts (e.g., Rs. 300/- per candy) to MSME mills,
cooperative sector mills, and Khadi industries to boost competitiveness.
iii. Yarn Supply Scheme (YSS): Ensures availability of raw materials at "mill gate prices" to
handloom weavers, indirectly supporting steady demand for yarn.
iv. Kasturi Cotton Initiative: Focuses on branding, traceability, and certification to promote Indian
cotton quality, benefiting the entire supply chain from farm to mill.
3. Financial Assistance and Incentives:
i. Production Linked Incentive (PLI) Scheme: Encourages production of high-value Man-Made
Fiber (MMF) fabrics and technical textiles, attracting investment and promoting eco-friendly
manufacturing.
ii. Rebate of State and Central Taxes and Levies (RoSCTL): Provides tax rebates on exported
garments and made-ups, boosting downstream demand for yarn.
iii. Interest Equalization Schemes: Increased rates for pre- and post-shipment credit to support
MSME exporters.
iv. Special Package for Textiles (2016): Included measures like additional production subsidies under
ATUFS, EPF contribution support, and tax concessions.
4. Infrastructure Development:i. PM-MITRA Parks: Establishment of 7 Mega Integrated Textile Region and Apparel Parks with
world-class, plug-and-play facilities to reduce logistics costs and improve efficiency.
ii. Integrated Processing Development Scheme (IPDS): Supports new and upgraded Common
Effluent Treatment Plants (CETPs) to help mills meet environmental standards.
5. SAMARTH Scheme (Scheme for Capacity Building in Textile Sector): Aims to provide
demand-driven, placement-oriented training to create a skilled workforce for the sector.
These initiatives collectively address the need for upgraded technology, skilled manpower, rising raw
material costs, and un-integrated supply chains.
Total, operational and other units in Preparation and Spinning textile fibres (1311)
2019-20 2020-21 2021-22
Sr. State Number Factories Others* Number Factories Others* Number
N. of in of in of
Factories Operation Factories Operation Factories
1 Andhra Pradesh 267 220 47 215 168 47 198
2 Assam 4 4 0 15 15 0 4
3 Bihar 7 7 0 7 7 0 7
4 Chandigarh(U.T.) 1 1 0 1 1 0 1
5 Chhattisgarh 5 5 0 7 7 0 6
6 Dadra & N 116 84 32 118 97 21 136
Haveli & Daman
& Diu
7 Gujarat 450 363 87 429 321 108 483
8 Haryana 252 169 83 344 233 111 280
9 Himachal 28 28 0 35 35 0 39
Pradesh
10 Jammu and 15 14 1 11 11 0 11
Kashmir
11 Jharkhand 2 1 1 2 2 0 2
12 Karnataka 81 48 34 72 33 39 3213 Kerala 74 62 12 79 69 10 51
14 Madhya Pradesh 53 52 1 58 47 12 64
15 Maharashtra 532 294 238 567 301 266 563
16 Odisha 7 7 0 7 7 0 8
17 Puducherry 16 13 3 19 19 0 18
18 Punjab 273 210 64 280 213 66 269
19 Rajasthan 269 226 43 306 265 40 241
20 Tamil Nadu 2,663 1,995 668 2,696 2,042 654 2,773
21 Telangana 103 59 44 119 103 17 77
22 Tripura 2 2 0 2 0 2 1
23 Uttar Pradesh 49 31 17 98 61 37 44
24 Uttarakhand 8 8 0 8 7 1 8
25 West Bengal 97 77 20 84 73 11 52
India 5,373 3,979 1,394 5,575 4,134 1,441 5,368
Source : Annual Survey of Industries (ASI), M/o Statistics & Programme Implementation (MOSPI)
Note 1: Others* - Factories with fixed assets but not maintaining its staff and not having production for 3
years, or non-existence, or de-registration, or out of coverage etc.]
Note 2: The above data pertains to the data coverage of the Annual Survey of Industries which extends to
the entire Factory Sector comprising industrial units (called factories) registered under the Sections 2(m)
(i) and 2(m)(ii) of the Factories Act, 1948, wherein a ‘Factory’, which is the primary statistical unit of
enumeration for the ASI
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA
MARGHERITA in a written reply to a question in Rajya Sabha today.
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MAM/VN
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