New textile policy to attract Rs. 10,000 crore investment

Textile and Ports Minister Baburao Chinchansur announcing the new textilepolicy at a press conference in Gulbarga on Sunday.  

The State government has come out with an ambitious new textile policy for 2013-18, setting itself a target of attracting an investment of Rs. 10,000 crore and creating employment opportunities for five lakh people during the period and also make the State a preferred textile destination.

Releasing the policy document here on Sunday, Textile and Ports Minister Baburao Chinchansur told presspersons that the State was a pioneer in formulating textile policy.

On the new textile policy, Mr. Chinchansur said that the State has been classified into three zones and all areas falling in Bangalore Urban district, except Anekal taluk, will not get any incentives. However, backward districts with potential for textile activities will get the maximum benefits. Relatively developed areas from the perspective of a textile value chain will get marginally fewer benefits.

One of the features of the new policy is that interest subsidy will be given to small and medium investors in projects worth up to Rs. 99 crore. This amount will be a part of the amount earmarked for credit-linked capital subsidy. MSMEs with a maximum investment of Rs. 10 crore will be provided credit-linked subsidy of 15 per cent to 20 per cent with a ceiling of Rs. 2 crore, and for units investing Rs. 10 crore to Rs. 99 crore, credit-linked capital subsidy of 15 per cent to 20 per cent will be provided with a ceiling of Rs. 6 crore.

Mr. Chinchansur said that entrepreneurs belonging to Scheduled Castes and Scheduled Tribes will be provided an additional subsidy of 20 per cent and those belonging to minority, ex-serviceman, physically challenged and women categories will be provided with an additional subsidy of 5 per cent. He said that under the special credit-linked capital subsidy plan, an additional 10 per cent on the value of plant and machinery of a maximum of Rs. 25 lakh and an additional 20 per cent on the value of plant and machinery of maximum of Rs. 30 lakh for integrated textile units will be given.

For modernisation of existing units, a subsidy of 15 per cent to 20 per cent with a ceiling of Rs. 1 crore will be provided and sick cooperative spinning mills will be given a subsidy of 20 per cent with a ceiling of Rs. 2 crore for their revival and modernisation.

Besides this, the Minister said, new units will be provided 100 per cent entry tax reimbursement and 100 per cent stamp duty reimbursement in Zone I and 50 per cent in Zone II.

Mr. Chinchansur said that for mega projects incentives will not exceed 15 per cent of the project cost or it will be a maximum of Rs. 50 crore. Power subsidy of Re. 1 per unit will be provided to all new units and the government will set up 145 skill development centres in various disciplines of textiles for the benefit of the unemployed youth.

The Minister said that a subsidy of 40 per cent with a ceiling of Rs. 20 crore will be provided to textile industries for establishing their own infrastructure facilities at textile parks in green field and brown field zones. He said that the government will provide a financial assistance of Rs. 10 crore for establishing a centre of excellence for textiles and for the overall and integrated development of the sector.

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Printable version | Oct 23, 2020 12:20:31 AM | https://www.thehindu.com/news/national/karnataka/new-textile-policy-to-attract-rs-10000-crore-investment/article5361278.ece

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