SAATHI
India’s power loom sector is primarily a chaotic sector, with numerous microunits and small units, most of which use outdated technology. The government is upgrading a simple power loom as part of the Power Tex India scheme to improve its technology. Ministries of Textiles and Power have joined forces as part of a new initiative, Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries (SAATHI) for the upliftment of this sector.
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Highlights
The Government’s SAATHI Initiative is being jointly implemented by the Textile Commissioner Office and EESL on a pan-Indian basis. To support the implementation, cluster demonstration workshops and projects are organized by major clusters such as Surat, Erode and Ichalkaranji.
Implementation of SAATHI
As part of this initiative, Energy Efficiency Services Limited (EESL), a government agency managed by the Power Ministry, purchases energy-efficient looms, motors and rapier kits in bulk for small and medium-sized use and provides power loom unit to small and medium enterprises with no prepaid costs.
This efficient equipment saves facility owners energy and money and repays EESL in instalments over a period of 4-5 years. This is the aggregation, mass procurement, and financing model that EESL has successfully used in multiple sectors such as LED lamps, smart meters, and electric vehicles. Repayments to EESL come from more efficient devices and the savings resulting from cost savings, leading unit owners to procure these devices or allocate additional costs to repayments. A person doesn’t have to bear the cost of capital. Bundled demand and bulk procurement also reduces the cost of capital and the benefits are passed on to the loom unit, reducing repayments and deadlines.
Reasons for implementing the SAATHI scheme
Most of the technologies used in the Indian textile industry are outdated and the number of microscopes is stagnant. Small and medium-sized units (MSMEs) do not have this kind of improved technology without a significant investment. Therefore, SAATHI was the government’s solution for upgrading these industries at the optimal cost.
Benefits of the SAATHI scheme
As the current technology of the textile industry improves, the SAATHI program is believed to benefit the industry through increased demand, lead to mass sourcing and huge profit margins. In addition, energy-saving methods are cost-effective for textile owners and will multiply the volume of transactions.