Arnold Thomas

Expert

Published on: Aug 17, 2026

Powertex India Scheme

PowerTex India is an all-inclusive scheme that’s made for the development of the power loom sector which further addresses the unheard needs of the power loom sector. The Union Textiles Minister Shri. Smriti Irani had launched the scheme for developing the knitting and knitwear sector under the Powertex India Scheme. The already introduced schemes are now modified with additional components, and new schemes are also added in an attempt to develop the sector further. This scheme aims at boosting the already existing infrastructure and encourage the adoption of modernisation in the power loom sector at an even larger scale.

Components of The Powertex India Scheme

  1. In-situ Upgradation of Plain Power looms.
  2. Group Workshed Scheme.
  3. Yarn Bank Scheme.
  4. Common Facility Centre.
  5. Pradhan Mantri Credit Scheme for Power looms.
  6. Solar Energy Scheme for Power looms.
  7. Market Development, Facilitation, IT, Awareness, and Publicity for Power loom Schemes.
  8. Tex Venture Capital Fund.
  9. Grant-in-Aid and Modernisation & Upgradation of Power loom Service Centres (PSCs).

Financial Assistance/Subsidies to the Components

1. In-situ Upgradation of Plain Power looms

Quantum of Subsidy

Category

Percentage of subsidy

Maximum subsidy Amount per loom

 

  Plain power loom to semiautomatic shuttle loom/attachments of dobby, jacquard/pirn winding machine (upgradation without rapier kit) Semi-automatic shuttle loom to shuttle less rapier loom (Attachment of only Rapier Kit) Plain power loom to shuttle less rapier loom/Kits Attachments (Upgradation with Rapier kit)

General

0.5 Rs.20,000 Rs.25,000 Rs.45,000

SC

0.75 Rs.30,000 Rs.37,500

Rs.67,500

ST 0.9 Rs.36,000 Rs.45,000

Rs.81,000

2. Group Workshed Scheme

Subsidy Chart

S. No.

Category Eligible Subsidy on the unit cost of construction

Cap on Subsidy

Per Sq. Ft

1

General

40% Rs.400

2

SC

75%

Rs.750

3

ST 90%

Rs.900

 

3. Yarn Bank Scheme

Financial Assistance

The Government of India (GOI) provides interest-free corpus fund of a maximum amount of Rs.200 Lakh per yarn bank to SPV/Consortium.

4. Common Facility Centre

Subsidy Chart

S. No.

Cluster Grade

Maximum Financial Assistance on Project Cost

1

A 60%

2

B

70%

3

C

80%

4

D & Clusters in NER/J&K

90%

 

5. Pradhan Mantri Credit Scheme for Power looms

  • PMMY - Financial Assistance
    • This financial assistance is done only in the cases of pre-existing individual power loom units (or) New individual/group enterprises that are already involved in the activity of weaving.
  • STAND UP INDIA - Financial Assistance
    • This financial assistance of flat 25% Money Margin Subsidy is given to a project cost of up to Rs.1 Crore with a ceiling of Rs.25 Lakh whereby the borrower is required and expected to bring in 10% of the Project Cost as their contribution.

6. Solar Energy Scheme for Power looms

Subsidy Chart

No. of Looms (Solar Capacity) Maximum cost of Equipment and component eligible for subsidy Maximum Subsidy in Rupees
 General (50%)  SC (75%)

ST (90%)

A) On Grid Power Plant
4 Looms (4 KW) Rs.2,80,000 Rs.1,40,000 Rs.2,10,000 Rs.2,52,000
6 Looms (6 KW) Rs.4,20,000 Rs.2,10,000 Rs.3,15,000 Rs.3,78,000
8 Looms (8 KW) Rs.5,60,000 Rs.2,80,000 Rs.4,20,500 Rs.5,04,000
B) Off Grid Power Plant
4 Looms (4 KW) Rs.3,60,000 Rs.1,80,000 Rs.2,70,500 Rs.3,24,000
6 Looms (6 KW) Rs.5,40,000 Rs.2,70,000 Rs.4,05,500 Rs.4,86,000
8 Looms (8 KW) Rs.7,20,000 Rs.3,60,000 Rs.5,40,000 Rs.6,48,000

7. Market Development, Facilitation, IT, Awareness, and Publicity for Power loom Schemes

Financial Assistance Provided for
  • Help Centre: Dedicated helpline to Power loom Weavers, User friendly customer web portal, Disseminate information on Government Schemes of Power looms, Registration of power loom weavers to avail facility/benefits, IT - Development of online-portal/mobile application for schemes implemented by Government of India, Facilitating/Liaison with Banks for Power loom Entrepreneurs, SMS alerts on new developments and initiatives, Design and Technical Advancement, Entrepreneur Cell.
  • Awareness and Market Development Programmes: International events like Reverse Buyer-Seller Meets, Seminars/Workshops, E-platform for the marketing of power loom products, Buyer-Seller Meets, Publicity in Electronic and Print Media, Exposure Visit of Weavers and conducting special studies, surveys and evaluation of programmes/schemes on the special needs.

8. Tex Venture Capital Fund

Financial Assistance A maximum of 50% of the total project cost with a ceiling of Rs.3 crore is invested by SV Credit line Limited (SVCL).

9. Grant-in-Aid and Modernisation & Upgradation of Power loom Service Centres (PSCs)

Financial Assistance Twenty-Six (26) Textile Research Associations (TRAs), Six (6) State Govt. facilities (offering various services like training, design development, sample testing, consultancy, conducting seminar/workshop, etc.) and Fifteen (15) power loom Service Centres under Office of the Textile Commissioner to the power loom sector on behalf of the Government. The Grant-in-Aid (GIA) is provided to the PSCs of TRAs/State Government agencies/platforms for the recurring expenses of running the PSCs. The Govt. assistance will include installing modern looms to create awareness of the latest technologies, improving testing facilities, the power loom Service Centres would also be provided with Preparatory machines, Design Development facilities, sewing machines for Garment and Apparel, testing instruments, Embroidery Machines, etc.

Registration Procedure

The following details need to be filled by the applicant to register:

  • Enterprise Detail
  • Contact Person Details
  • Correspondence Details
  • Verification Code

The following details need to be filled by the applicant to log in:

  • User Name
  • Password
  • Verification Code
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Frequently Asked Questions

Common questions about Powertex India Scheme.

The PowerTex India Scheme is a comprehensive initiative launched by the Government of India aimed at developing and modernizing the power loom sector. It addresses the diverse needs of this sector through various components, including upgrading existing infrastructure, encouraging technology adoption, and providing financial assistance.
The main components of the PowerTex India Scheme include In-situ Upgradation of Plain Power looms, Group Workshed Scheme, Yarn Bank Scheme, Common Facility Centre, Pradhan Mantri Credit Scheme for Power looms, Solar Energy Scheme for Power looms, Market Development and Awareness Programs, Tex Venture Capital Fund, and Grant-in-Aid and Modernisation of Power loom Service Centres (PSCs).
The Group Workshed Scheme provides financial assistance in the form of subsidies for the construction of worksheds for power loom units. The subsidy amount varies based on the category of the beneficiary, with higher subsidies offered to Scheduled Caste (SC) and Scheduled Tribe (ST) communities.
The Yarn Bank Scheme provides interest-free corpus funds up to a maximum of Rs. 200 Lakh per yarn bank to Special Purpose Vehicles (SPVs) or Consortiums. This scheme aims to address the working capital needs of power loom weavers by providing them with a steady supply of yarn at reasonable prices.
The Pradhan Mantri Credit Scheme for Power looms comprises two sub-schemes: PMMY (Pradhan Mantri Mudra Yojana) and STAND UP INDIA. These schemes offer financial assistance in the form of loans and subsidies to support individual power loom units, new enterprises, and entrepreneurs in the weaving sector.
The Solar Energy Scheme for Power looms provides subsidies to power loom units for the installation of solar power plants, both on-grid and off-grid systems. The subsidy amount varies based on the number of looms and the category of the beneficiary, with higher subsidies offered to SC and ST communities.
This component of the PowerTex India Scheme offers assistance in the form of dedicated help centers, customer web portals, dissemination of information, registration of power loom weavers, online portals/mobile applications, facilitation with banks, SMS alerts, design and technical advancement, and entrepreneur cells. It also includes conducting international events, buyer-seller meets, seminars, workshops, and publicity campaigns.
The Tex Venture Capital Fund is a financial assistance component of the PowerTex India Scheme. Under this scheme, SV Credit line Limited (SVCL) invests up to a maximum of 50% of the total project cost, with a ceiling of Rs. 3 crore, to support power loom-related projects.
The Grant-in-Aid (GIA) is provided to the Power loom Service Centres (PSCs) of Textile Research Associations (TRAs), State Government agencies, and platforms under the Office of the Textile Commissioner. This assistance includes recurring expenses, installation of modern looms, improving testing facilities, and providing preparatory machines, design development facilities, sewing machines, and testing instruments.
To register for the PowerTex India Scheme, applicants need to provide details such as Enterprise Details, Contact Person Details, Correspondence Details, and a Verification Code. Additionally, for logging in, they need to enter a User Name, Password, and Verification Code.