Integrated and Sustainable Textile Policy (ISTP) 2023-28 - Spinning Sector (Cooperative Spinning Mills) - Capital Subsidy
The Spinning Sector (Co-operative Spinning Mills) – Capital Subsidy component of the Integrated and Sustainable Textile Policy 2023–28 provides targeted financial assistance to co-operative spinning mills for modernization, expansion, and installation of energy-efficient machinery. The initiative seeks to strengthen rural employment, farmer income, and the overall cotton-to-yarn value chain across Maharashtra.
Key Features
- Capital Subsidy: Financial support on fixed capital investment (plant, machinery, building) for modernisation or new co-operative spinning mills.
- Encouragement for Automation: Supports mills adopting modern, high-speed, energy-efficient spinning technology.
- Zonal Incentives: Mills in underdeveloped zones (I & II) receive higher subsidy percentages.
- Inclusive Bonus: +5 % additional subsidy for co-operatives promoted by women, SC/ST, or minority members.
- Sustainability Component: Units installing renewable energy systems (solar, waste-to-energy) may include these costs under eligible investment.
- Employment Retention: Ensures sustainable job creation and improved working conditions in rural spinning clusters.
Financial Assistance
Note - Subsidy is disbursed in instalments after project verification by the Directorate of Textiles.
Eligibility Criteria
Who can apply
- Registered co-operative spinning mills in Maharashtra (new or existing under modernization).
- Mills that invest in modernization of machinery or expansion between June 2023 – March 2028.
- Units operating under state co-operative laws and approved by the Department of Textiles.
- Mills fulfilling minimum investment and employment conditions as per guidelines
Who Cannot Apply
- Mills located outside Maharashtra.
- Private spinning units (eligible under separate components, not this co-operative subsidy).
- Co-operative mills under liquidation, default, or non-operational status.
- Units not complying with energy efficiency or safety standards.
Documents Required
- Registration certificate under Co-operative Societies Act
- Detailed Project Report (DPR)
- Government approval / Board resolution for modernization
- Machinery purchase invoices
- CA-certified fixed asset statement
- Audited balance sheet and financials of last 3 years
- Employment statement and payroll records
- Bank details and PAN/GST certificate
- Energy audit or solar installation proof (if applicable)
- Self-declaration for women/SC/ST ownership (for extra 5 %)
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
Option 2: Government Process
- Visit the official portal – mahatextile.maharashtra.gov.in.
- Download the Capital Subsidy application form for Co-operative Spinning Mills under ISTP 2023–28.
- Attach DPR, investment details, co-operative registration, and audited financials.
- Submit online or to the District Textile Officer / Director of Textiles.
- On commissioning or modernization completion, submit claim for verification and subsidy release.
Option 3: Offline Submission
Manual submission is allowed at the Directorate of Textiles with full documentation.
Frequently asked questions
What is the objective of the spinning sector subsidy under ISTP 2023–28?
The objective is to strengthen yarn production capacity in Maharashtra by supporting cooperative spinning mills through capital subsidy for modernization, expansion and installation of modern spinning machinery.
Who can apply for this scheme?
Cooperative spinning mills operating in Maharashtra are eligible to apply under this component of the Integrated and Sustainable Textile Policy.
Are new spinning mills eligible for subsidy?
Yes, new cooperative spinning mills established within Maharashtra can apply for capital subsidy support under the policy.
Can existing spinning mills apply for modernization assistance?
Yes, existing cooperative spinning mills can apply if they invest in modernization or expansion projects involving installation of new machinery.
What types of machinery are eligible for subsidy?
Machinery used in spinning operations such as blow room machines, carding machines, ring frames and related equipment may qualify for subsidy.
Is the scheme limited to MSMEs?
The scheme primarily targets cooperative spinning mills. Depending on policy provisions, cooperative enterprises of different sizes may be eligible.