Textile & Fashion

Maharashtra States New Textile Incentives Will Be Attracting Rs 360 Billion Investments

15205995334.jpg

The new textile policy of the government of Maharashtra has managed attracting investment word Rs 360 Billion as compared to that of Rs 200 billion assured for Gujarat’s neighboring state.

For restoring Maharashtra’s position as a prominent hub in this respect which has been eroded for the last few years, the state government decided to provide an initial capital subsidy of around 25 to 40% over the supply chain. Also sector specific and area wise incentives like 10% of additional subsidy and low electricity rates for the purpose of setting up some units through the under developed areas.

Secretary (Textiles), Government of Maharashtra, Mr. Atul Patne said, "The state produces 8.2 million bales (170 kg each) of cotton, of which only a fourth is consumed within the state. The remaining quantity is supplied to spinning mills in other states. By contrast, Tamil Nadu produces only 0.5 mn bales of cotton but processes around 10.5 mn bales, by procuring the fibre from other states because of cheaper electricity. We want the remaining three-fourth of unprocessed cotton to be processed within the state, for which we have offered an electricity rate lower by Rs 2-3 a unit. In addition, capital subsidy for setting up a plant and machinery across the value chain. We are confident of Maharashtra attracting massive investment in the sector”.

Besides looking after the conventional textile sector, the government has also provided incentives for eco-friendly and pollution-free processing and dyeing plants. Also non-conventional yarn such as banana, bamboo, ambadi, ghaypat, maize and coir has been identified as incentives for making yarn. Also it has made an offer for setting up a textile university along with granting a Textiles Development Fund with the initial collection of worth Rs 300 to 400 crore. Special packages have been announced by the Union Ministry of textiles as well.

 

 

Leave a comment