An official said the subsidy will be reviewed every year to reduce the overall burden. “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 said.

The official said that, “In the new Textile policy 2018-23, approved in February, the department has decided to give power subsidy of `3 per unit to cooperative spinning mills for three years. We have also given subsidy to other textile projects. Within this period of three years, the cooperative spinning mills and textile projects are expected to set up nonconventional power projects in their premises to fulfill their power needs.”

The committee will be headed by the Textile Director, and will comprise the Director General of the Maharashtra Energy Development Agency and an official from the Maharashtra State Electricity Distribution Company Ltd, said an official, adding that it has been asked to submit a report in two months.

Officials from the Maharashtra Textile Department, which has set up the committee, said the panel has been told to work on with finalising the details of the proposed subsidy. Among other things, the criteria are to declare units eligible for subsidy and chalking out a plan for implementation. The State Government has set up a committee to help cooperative spinning mills and textile units set up solar power plants.