India's Maharashtra State Government is to provide subsidies for spinning mills and textile units to set up solar power plants in a move designed to reduce costs for companies across the state.

A committee, established by the Maharashtra Textile Department, is tasked with finalising the details of the proposed subsidy, the criteria to declare units eligible for subsidy and chalking out a plan for implementation, according to a report published today (14 May) by The Indian Express.

The committee, which is to submit a report on its findings in two months time, will be headed by the textile director and will also comprise the director general of the Maharashtra Energy Development Agency and an official from the Maharashtra State Electricity Distribution Company Ltd.

The move is part of the new Textile Policy, approved in February, and will see the Maharashtra Textile Department give power subsidies of Rs 3 per unit to cooperative spinning mills for three years. Within this period, the cooperative spinning mills and textile projects are expected to set up non-conventional power projects in their premises to fulfill their power needs, an official told The Indian Express.

"One of the major reasons why spinning mills incur losses is the higher power tariffs in Maharashtra compared to other states. So we want to encourage spinning mills to set up solar power plants. It will reduce the power bills," the official added.