Centre approves Rs 50 lakh grant each to 7 startups

The initiative aims to promote innovation and sustainability while fostering transformational growth in the industry, the Textiles Ministry said in a statement.

The ministry aims to support 150 startups to promote innovations in technical textiles. These seven startups are in addition to the one approved earlier.

Mint It was first reported on June 4 that the Textiles Ministry was planning to provide a grant of up to Rs 10 lakh. An assistance of Rs 50 lakh each has been announced for 150 startups engaged in manufacturing technical textiles and the ministry will not ask for any share in the profits generated from the business.

Also read: Central government will fund 150 startups Rs 50 lakh each for development of advanced technical textiles

Textiles Ministry relaxes royalty cap

In addition, the textiles ministry has relaxed the royalty cap on the scheme. Generally, every fund provider takes a percentage of the profits earned by the startup as ‘royalty’ in return for its investment. This relaxation will make it easier for these start-ups to move forward.

Proposals focusing on sustainability, composites, high-performance textiles, medtech and smart textiles, which drive significant advancements in these key areas, have been approved by the Empowered Programme Committee (EPC) headed by Textiles Secretary Rachna Shah, the ministry said in a statement.

The grants have been approved under NTTM’s Grants for Research and Entrepreneurship (GREAT) scheme for ambitious innovators in technical textiles. The initiative aims to encourage young innovators, scientists, technologists and startup ventures to convert their ideas into commercial technologies and products, thereby promoting self-reliance in India.

It said the approved startups include projects focused on development and manufacturing of braided composites for military applications, Radmon integrated IFF antennas, surgical simulation models made of composites for training doctors, and nano-fibre infused textiles for energy generation and sensing.

These initiatives are expected to significantly contribute to technology-driven manufacturing in India.

Also read: Central government to set up laboratories for testing marquee textiles for export

In addition to startup funding, EPC has also approved grants IIT Guwahati has been given Rs 6.4 crore. The funds will be used to introduce new disciplines in technical textiles and enhance laboratory infrastructure in the institute’s civil engineering department.

NTTM was launched in 2020 with the aim to establish India as a global leader in technical textiles by promoting research, innovation, and the use of technical textiles across various sectors.

Rahul Ahluwalia, co-founder of the Foundation for Economic Development, said, “The synthetics eco-system in India needs a massive boost in both textiles and apparel. Technical textiles are a part of the synthetics eco-system, so the government recognises this gap.”

“The role of startups is important, but the government also needs to focus on large investors who can promote synthetics,” Ahluwalia said.

According to a KPMG report, the Indian technical textiles market is the 5th largest in the world and reached $21.95 billion in 2021-22, with production at $19.49 billion and imports at $2.46 billion. Over the last five years, this market has grown at a rate of 8-10% per year and the government aims to grow it to 15-20% in the next five years.

According to a KPMG report, the global technical textiles market is estimated at $212 billion in 2022 and is expected to reach $274 billion by 2027, growing at a CAGR of 5.2% during 2022-27, driven by rising demand across industries and rapid development of new application products.

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Published: June 13, 2024, 09:07 PM IST