The Union Budget on Thursday proposed an allocation of ₹7,148 crore for the textile sector, which includes the entire textile value chain and segments such as silk and jute.
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The major allocation is for the Amended Technology Upgradation Fund scheme, a programme that looks at improving productivity through technology upgradation with higher fixed capital investment. The scheme has got ₹2,300 crore as against ₹1,956 crore for the year 2017-2018. The other substantial allocation is towards Rebate of State Levies (ROSL), which is to boost exports. The scheme has received an allocation of ₹2,163.85 crorecompared with ₹1,555 crore earmarked for the sector in the previous budget. The outlay for schemes for powerloom units is ₹112.15 crore, covering programmes under the Power Tex India and Comprehensive Powerloom Cluster Development Programme.
Environment norms
The Integrated Processing Development Scheme, which will support the textile processing sector comply with environment norms, will get ₹3.8 crore and nearly 4,000 units are expected to benefit. Similarly, the Scheme for Integrated Textile Parks, which has 47 ongoing projects, will get ₹30 crore to create infrastructure facilities for textile units.
The budget has proposed ₹396 crore for handloom clusters under the National Handloom Development Programme. The plan is to supply 5,355 lakh kg of yarn to the weavers, set up 31 new block-level clusters, covering 2,000 weavers for loom upgradation.
Schemes such as integrated skill development (₹200 crore) and segments such as sericulture (₹510.61 crore) are the others to get budgetary support. About 50 new projects will be initiated and 35 current projects completed in the silk sector for better capacity building. In an effort to encourage use of geo textiles in road construction and reservoir projects, ₹15 crore has been allocated. This will help lay 40 km road using geo textiles, take up 20 slope stabilisation projects and 25 water reservoir projects.
Technology missions
There are also plans for technology missions on cotton, knitwear and technical textiles with budgetary allocations.
A comprehensive programme to develop all segments of the textile industry in the north eastern region is also in the works.
Significantly, the customs duty on silk fabric has been increased from 10% to 20%.
