Topic of the Day – SAATHI

UPSC Exam Preparation: Topic of the Day – SAATHI

The Powerloom sector in India is predominantly an unorganized sector and has a large number of micro and small units and most of them use obsolete technology. Government is implementing INSITU upgradation of plain Powerlooms as part of Power Tex India Scheme with a view to upgrading the technology.

The Union Ministry of Power and Textiles have jointly lunched an initiative called SAATHI (Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries).  Under the initiative, Small and Medium Power loom units will be provided energy efficient powerlooms, motors and rapier kits at no upfront costs by Energy Efficiency Services Limited (EESL) a Public Sector Undertaking under Ministry of Power.

  • The SAATHI initiative will be jointly implemented pan India by EESL and the office of the textile commissioner of India.
  • Key clusters such as Ichalkaranji, Surat, Erode etc have been chosen for implementation of the initiative.
  • The initiative is based on the aggregation, bulk procurement and financing model that EESL has successfully deployed in several sectors like Electric Vehicles, Smart Met Meters and LED bulbs.
  • Under this initiative, the owner of the unit does not have to allocate any upfront capital cost to procure these equipments. He also does not have to allocate additional expenses for repayment. The repayments by unit owner to EESL will made from savings that accrue as result of higher efficiency equipments and cost savings.
  • The aggregation of demand and bulk procurement will lead to reduction in capital cost and benefits of it will be passed on to powerloom units so that their repayment amount and period would reduce.

Use of these efficient equipments will result in energy savings that will inturn lead to  cost savings to owner of the unit. This would help the owner repay the equipment cost to EESL in installments over a period of 4 to 5 years.

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