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Home / IAS Preparation / Government Schemes of India / Saathi Scheme

SAATHI scheme- Aims and Objectives, Salient Features, Benefits.

Last Updated on Apr 20, 2023
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SAATHI, launched in 2018, stands for Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries.SAATHI is jointly implemented by EESL (Energy Efficiency Services Limited) under the Union Ministry of Power and the Union Ministry of Textiles.

SAATHI scheme is one of the most important topics for the UPSC IAS exam under the Government Scheme. It covers a significant part of the Governance and Social Justice under the Mains Section in the General Studies Paper-2 syllabus. In this article. We shall study in detail the SAATHI scheme and its importance for the UPSC exam.

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Download the PDF on SAATHI notes for UPSC Exam here.

Latest News About SAATHI

India has around 24.86 lakhs Power loom units that use obsolete technology. SAATHI is a scheme launched by the Government to INSITU upgrade the technology of the plain Power looms as a part of the Power Tex India Scheme.

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SAATHI Scheme

Background

In India Power, the loom sector is mostly unorganised. It comprises many micro and small units that produce around 57% of the total cloth in the country. In all, about 24.86 lakhs Power loom units in the country use obsolete technology.

The Controlling Ministry

SAATHI scheme is jointly implemented by the Union Ministry of Textiles and the Union Ministry of Power under its PSU Energy Efficiency Services Limited (EESL). The Union Ministry of Power promotes EESL as a Joint Venture company of 4 PSUs, namely Power Finance Corporation Limited, Rural Electrification Corporation Limited, POWERGRID Corporation of India Limited, and NTPC Limited.

Need for SAATHI

To bring energy efficiency to the Power Loom Sector and contribute to mitigating Climate Change by manufacturing and supplying energy-efficient services and products.

It will also help reduce the capital cost and pass on the benefits to power loom units to repay the amount incurred in adopting the energy-efficient equipment.

Aim and Objectives of SAATHI Scheme
  • To sustain and accelerate the adoption of energy-efficient textile technology in the power loom sector.
  • To reduce the cost of the production of textiles by using updated technology.
  • To overcome the challenges of the lack of finance for capital investment faced by the small and medium power looms.
  • To provide the EESL’s service model under which the upfront investment is done by EESL and repaid by the beneficiary in instalments over 4-5 years.

SAATHI Scheme: Eligibility

The textile units that come under the micro and small-scale industries are eligible to be part of the SAATHI initiative.

MSME industries can be further referred from here.

Salient Features of the SAATHI Scheme
  • The scheme aims to promote the use of efficient textile technologies in the small-scale textile industry to improve productivity, reduce the industry's environmental impact, and enhance the sector's competitiveness.
  • The SAATHI scheme provides financial assistance to small-scale textile units to adopt efficient technologies. The assistance is provided as a subsidy of 10-15% of the cost of technology.
  • Small-scale textile units with an annual turnover of up to Rs. 200 crores are eligible for the scheme.
  • The SAATHI scheme promotes energy-efficient textile technologies, such as high-speed shuttleless looms, continuous dyeing machines, and knitting machines.
  • The scheme has a monitoring and evaluation mechanism to ensure the adopted technologies are used efficiently and effectively.
  • The SAATHI scheme provides technical support to small-scale textile units to select and install efficient textile technologies.
  • The scheme promotes the use of eco-friendly textile technologies and practices to reduce the textile industry's environmental impact.

Role of EESL in SAATHI

Under the SAATHI scheme, the EESL is the nodal implementing agency. It has a significant role in procuring energy-efficient Powerlooms, Rapier kits, and motors in bulk. It will then be provided to the small and medium Powerloom units at no upfront cost.

EESL to work on the aggregation, bulk procurement, and financing model that has already been successfully deployed in other sectors like Smart Meters, Electric Vehicles, and LED bulbs.

Benefits of SAATHI Scheme
  • Adopting efficient textile technologies under the scheme is expected to increase the productivity and efficiency of small-scale textile industries, leading to higher output and better-quality products.
  • Using efficient textile technologies can help reduce the textile industry's environmental impact by reducing energy consumption, water usage, and greenhouse gas emissions.
  • Adopting efficient textile technologies can lead to cost savings for small-scale textile industries by reducing energy consumption and other resources.
  • The SAATHI scheme encourages the upgradation of technology in the small-scale textile industry, which will improve the competitiveness of the industry and its ability to meet the changing demands of the market.
  • The increased productivity and competitiveness of the small-scale textile industry due to the SAATHI scheme are expected to create employment opportunities in the sector.
  • The scheme promotes sustainable development by encouraging the adoption of eco-friendly technologies and practices in the textile industry.

Details about the Aatma Nirbhar Bharat Rozgar Yojana can be studied from here.

SAATHI: Key Facts and Figures for UPSC
  • SAATHI scheme is jointly implemented by the EESL, which is under the administrative control of the Union Ministry of Power, and by the Office of Textile Commissioner on a pan-India basis.
  • India has around 24.86 lakhs of Power loom units using obsolete technology.
  • It has an initial target to cover around 1.3 million units in clusters like Erode (Tamil Nadu), Bhiwandi & Ichalkaranji (Maharashtra), and Surat(Gujarat).

Concluding Remarks

This scheme will bring about a sea change in the small units that use redundant technology by upgrading them technically and increasing their profit margins. It will make the Indian textile sector more competitive, employing a huge number of people and contributing to earning forex by increasing exports.

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SAATHI Scheme FAQs

SAATHI scheme was launched in 2020.

The micro and small units of the Textile sectors will be benefitted from the SAATHI scheme.

It is jointly launched by the Office of the Textile Commissioner under the Union Ministry of Textiles and EESL (Energy Efficiency Services Limited ) under the Union Ministry of Power.

Aim of the SAATHI scheme is to adopt the latest and most efficient technology in the Textile units to increase their efficiency and realise better profit margins for the unit owners.

EESL is Energy Efficiency Services Limited, PSU, which works under the administrative control of the Union Power Ministry.

EESL is a joint venture of the four Central Power Sector Undertakings namely Power Finance Corporation Limited, Rural Electrification Corporation Limited, NTPC Limited and POWERGRID Corporation of India Limited.
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