Maharashtra unveils solar incentives for Textile Industry

  • Industry News
  • Sep 07,23
Maharashtra Electricity Regulatory Commission has proposed amendments to Distributed Open Access Regulations, making it easier for consumers with a contract demand of 100 kW or more to access power from renewable sources.
Maharashtra unveils solar incentives for Textile Industry

The Government of Maharashtra has unveiled a series of incentives aimed at promoting the adoption of solar projects within the textile industry in the state.

These incentives are integral components of the Integrated and Sustainable Textile Policy, which was endorsed by the state's Department of Textiles earlier this year and is set to remain in effect from 2023 to 2028. The policy encompasses a range of measures, including electricity subsidies, support for effluent treatment facilities, and the facilitation of zero liquid discharge systems, all aimed at facilitating the textile sector's transition towards greater sustainability.

In the policy document, the state government highlights the textile and apparel industry's substantial contribution to the nation's economy, accounting for 2.3% of the GDP, 13% of industrial production, and 12% of exports. Maharashtra, in particular, plays a significant role in this industry, responsible for 10.4% of the country's total textile and apparel production and producing 272 million kgs of yarn, representing 12% of India's total production.

The primary goal of this new policy is to fortify the textile supply chain, concentrating on the long-term sustainability of processes. The policy comprises several key components:

Electricity Subsidy
The government will grant electricity subsidies to existing textile units for a duration of two years, with a monthly cap of Rs 4 million per textile unit.

Solar Power Subsidy
The capital subsidy for installing solar power projects will be calculated as 12/24 months of electricity subsidy or the cost of installing a solar power project, with a maximum capacity of 4 MW or a sector-specific capped amount, whichever is lower. Different capping limits have been established for various sectors within the textile industry.

Project Disbursement
Subsidies for solar projects will be disbursed after the operationalization of the project in two equal installments, with a six-month gap. New textile units or those undergoing expansion must include the solar project's installation cost in their detailed project report, with the subsidy calculated based on fixed capital investment, including eligible machinery and solar projects up to 4 MW. The project report will be assessed and approved by the Maharashtra Energy Development Agency.

Capacity Limitations
Textile units installing solar projects must not exceed the approved load/contract demand of conventional energy by the unit. Additionally, there is no 1 MW cap for net metering for these solar projects, and the textile units are responsible for the operation and maintenance of the projects.

Energy Sources
The state government's energy department will only levy transmission charges on projects using non-conventional energy sources when they simultaneously use conventional and non-conventional power sources.

Handloom Sector
While the Handloom sector is not included in the subsidy program, it will receive up to 200 units of free electricity per month under the Supply of Free Electricity to Handloom Weavers Households program.

Sustainable Measures
The government also plans to promote green technologies, including Effluent Treatment Plants (ETP), Common Effluent Treatment Plants (CETP), and Zero Liquid Discharge (ZLD) systems in the Processing Sector, providing capital subsidies for their establishment. Additionally, 12 recycling projects dedicated to old textile products will receive subsidies.

Furthermore, the Maharashtra Electricity Regulatory Commission has proposed amendments to Distributed Open Access Regulations, making it easier for consumers with a contract demand of 100 kW or more to access power from renewable sources.

With the rising adoption of renewable energy among commercial and industrial consumers in Maharashtra, efforts to facilitate this transition are underway, including the 'C&I Clean Energy Meet 2023,' bringing together industry stakeholders and businesses seeking to transition to renewables.

Source: Mercom India

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