Keen on attracting weavers who left for greener pastures return to their roots, Telangana government has chalked a ‘Returning Migrants Incentives Scheme’ too under the sops it announced on Friday for the textiles and apparel sector.
“To encourage return of weavers who had left Telangana to other States, the government will provide 50% of capital investment required to be borne by the weaver group to develop textile parks as per the guidelines of SITP (Scheme for Integrated Textile Parks) as well as MSME Cluster Development Scheme of the Government of India,” a GO on the sops said.
Only groups with at least 60% of the members as weavers who have migrated to other States, however, will be eligible for such subsidy support. The capital investment subsidy will be limited to ₹2 crore or 50% of the required beneficiary group contribution, whichever is lower, the State Government said. The decision comes in the backdrop of several lakh textile workers hailing from Telangana employed in well-established clusters across the country in Surat, Bhiwandi, Sholapur and Ichalkaranji. They have three-four decades of experience of working in the sector.
“Given the availability of high-quality cotton and a large pool of workers having deep experience and the presence of a domestic industry of reasonable scale, textiles and apparel present a rich opportunity to help the sector grow manifold through a sector focused comprehensive incentives framework,” Principal Secretary to Industries and Commerce Department Jayesh Ranjan said.
The incentives for the sector includes capital subsidy for new units -- ranging from (₹1 crore - ₹20 crore for conventional textiles and ₹2.5 crore to ₹40 crore for technical textiles. For existing units, the capital subsidy would be 20% of the cost of plant and machinery up to ₹5 crore per unit.
To be operative for five years from the date of notification, the set of incentives comprise interest subsidy, power tariff subsidy, stamp duty reimbursement, concession of VAT, CST/SGST besides assistance for acquisition of new technology and creation of energy, water and environmental conservation infrastructure. Transport subsidy to export-intensive textile/apparel units and design, product development and diversification assistance also form part of the incentives.
The GO also details measures the government will extend with regard to infrastructure support such as land allotment, additional benefits for units promoted by SC/ST entrepreneurs and persons with disability (PWD) as well as enterprises engaged in technical textiles.