**Executive Summary**
This report, issued by the Ministry of Textiles on March 24, 2026, outlines the operational status of spinning mills in India and the government's strategic initiatives to support the sector. It details various schemes focused on technology modernization, raw material price stabilization, and financial incentives aimed at improving industry competitiveness. The document provides comparative state-wise data from the Annual Survey of Industry for the 2019-20 and 2020-21 periods.
**Key Points / Main Content**
**Technology Up-gradation and Modernization**
* **ATUFS:** The Amended Technology Upgradation Fund Scheme provides credit-linked Capital Investment Subsidies (CIS) for purchasing benchmarked machinery to reduce environmental footprints.
* **Modernization Schemes:** State-specific initiatives, such as those in Tamil Nadu, provide interest subsidies for replacing machinery older than five years.
* **Mini Textile Parks:** Subsidies are available for developing infrastructure, buildings, and machinery specifically for smaller units.
**Raw Material Supply and Price Stabilization**
* **CCI Support:** The Cotton Corporation of India (CCI) is directed to sell cotton stocks purchased under the Minimum Support Price (MSP) directly to MSME-category spinning mills.
* **Direct Discounts:** CCI offers specific discounts (e.g., Rs. 300/- per candy) to MSME mills, cooperative sectors, and Khadi industries.
* **Yarn Supply Scheme (YSS):** Ensures handloom weavers can access raw materials at "mill gate prices" to maintain steady demand.
* **Kasturi Cotton Initiative:** Focuses on branding, traceability, and certification to promote the quality of Indian cotton.
**Financial Assistance and Incentives**
* **PLI Scheme:** The Production Linked Incentive scheme encourages the production of high-value Man-Made Fiber (MMF) fabrics and technical textiles.
* **RoSCTL:** Provides tax rebates on exported garments and made-ups to boost downstream demand for yarn.
* **Interest Equalization:** Offers increased rates for pre- and post-shipment credit to support MSME exporters.
* **Special Package (2016):** Includes additional production subsidies, EPF contribution support, and tax concessions.
**Infrastructure and Capacity Building**
* **PM-MITRA Parks:** Establishment of seven Mega Integrated Textile Region and Apparel Parks featuring plug-and-play facilities to reduce logistics costs.
* **IPDS:** Supports Common Effluent Treatment Plants (CETPs) to help mills meet environmental standards.
* **SAMARTH Scheme:** Provides demand-driven, placement-oriented training to build a skilled workforce for the textile sector.
**Industry Statistics**
* As of 2020-21, India had a total of 5,575 factories, with 4,134 in operation.
* Tamil Nadu holds the highest number of factories (2,696), followed by Maharashtra (567) and Gujarat (429).
* "Others" (units with fixed assets but no production for three years or de-registered units) accounted for 1,441 units nationally in 2020-21.
**Impact Analysis**
**MSME Spinning Mills and Cooperative Sectors**
**Impact**
These entities receive preferential access to raw materials and financial relief through direct CCI cotton sales and interest equalization on export credits.
**Action Required**
Identify eligibility for CCI discounts and apply for MSP-category cotton allocations to stabilize production costs.
**Textile Unit Owners and Investors**
**Impact**
Owners can modernize facilities at a lower cost through ATUFS and state-specific subsidies, while investors are incentivized to enter high-value segments like MMF through the PLI scheme.
**Action Required**
Evaluate existing machinery for upgrades under modernization schemes and apply for credit-linked subsidies for benchmarked technology.
**Handloom Weavers**
**Impact**
The Yarn Supply Scheme protects weavers from price volatility by ensuring access to materials at mill gate prices.
**Action Required**
Utilize the Yarn Supply Scheme (YSS) to procure raw materials for continuous production.
**Textile Sector Workforce**
**Impact**
Individuals benefit from enhanced employability and specialized skill development through government-funded training programs.
**Action Required**
Participate in training modules provided under the SAMARTH scheme for placement-oriented skill building.
Key Entities Referenced
Ministry of Textiles: The primary government authority implementing support measures for spinning mills, including technology modernization, financial incentives, and infrastructure development.
Amended Technology Upgradation Fund Scheme (ATUFS): A key scheme providing credit-linked capital investment subsidies to textile units for purchasing modern machinery and reducing environmental footprints.
Cotton Corporation of India (CCI): A government agency directed to ensure raw material availability by selling cotton stocks directly to MSME-category spinning mills at stabilized prices.
Production Linked Incentive (PLI) Scheme: An initiative designed to attract investment and promote the manufacturing of high-value Man-Made Fiber (MMF) fabrics and technical textiles.
PM-MITRA Parks: A program focused on establishing Mega Integrated Textile Region and Apparel Parks to provide world-class infrastructure and reduce logistics costs.
Ministry of Textiles
SPINNING MILLS
Posted On: 24 MAR 2026 3:20PM by PIB Delhi
As per Annual Survey of Industry, Ministry of Statistics & PI, State/UT-wise, including Tamil Nadu, total
number of spinning mills, number of spinning mills in operation and others is attached given below.
Ministry of Textiles does not maintain data of closed spinning mills separately. 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 Preparatio
2019-20 2020-21
Sr. State Number Factories Others* Number Factories Others* Number
N. of in of in of
Operation Factories Operation Factories
Factories
1 Andhra 267 220 47 215 168 47 198
Pradesh
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
Kashmir11 Jharkhand 2 1 1 2 2 0 2
12 Karnataka 81 48 34 72 33 39 32
13 Kerala 74 62 12 79 69 10 51
14 Madhya 53 52 1 58 47 12 64
Pradesh
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 49 31 17 98 61 37 44
Pradesh
24 Uttarakhand 8 8 0 8 7 1 8
25 West 97 77 20 84 73 11 52
Bengal
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 ASIThis information was provided by THE MINISTER FOR TEXTILES SHRI GIRIRAJ SINGH in a written
reply to a question in Lok Sabha today.
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