Talking to The Financial Express, Powerloom Development and Export Promotion Council (Pdexcil) chairman MS Mathivanan said co-operative societies will be formed in each of the 15 powerloom weaving centres identified in the state. These would come up mainly in the powerloom belts of Somanur, Erode, Avinashi, Pallipalayam and Anthiyur.One such co-operative society in Komarapalayam (a powerloom hub) - Hitech Powerloom Co-operative Marketing and Manufacturing Society - was formed last week.The powerloom industry's decision to form such co-operative societies, Mathivanan said, received the required impetus after the state government changed norms to suit powerloom sector. "Our attempt is to promote each of these powerloom clusters. These co-operatives would double as manufacturing and marketing centres.

Only modern machines will be encouraged at these clusters and we will be specifying on a minimum technology level," Pdexcil chairman said.According to Mathivanan, private entrepreneurs would bring in 10 per cent of the equity required for the formation of the clusters, 20 per cent would be contributed by the state government and the National Co-operative Development Corporation (NCDC) would chip in the balance 70 per cent.

The idea to form clusters would also help the powerloom industry access funds under the Technology Upgradation Fund (TUF) more easily than now. The industry is currently struggling with outdated technology and difficulty in accessing funds under TUF.Moreover, the decision to provide marketing activities in these co-operative clusters would help the industry improve it's domestic and export markets. "We will be involving trading activity also. The traders can source products from the various weaver's markets," he said.