The new Textile Policy is expected to attract investment of over Rs.20,000 crore, creating new employment opportunities for over 2.5 million people, 50 percent of them being rural women, during the next five years period.
The objective of the policy is to have an integrated approach to strengthen the value chain - “Farm to Fibre to Fabric to Fashion to Foreign” (5 Fs), which will enhance sustainable growth of farmers and industry.
The policy envisages starting cotton spinning and weaving parks around cotton growing areas and will provide support for energy and water conservation and environmental compliance.
Among the slew of incentives, the policy will provide interest subsidy for value-addition chain from ginning to spinning, weaving, processing, garment manufacturing and technology up-gradation.
It will refund VAT on expansion of existing and new units in spinning and readymade garments; provide power tariff concession for new cotton spinning and weaving units; give financial assistance to Skill Development Centre’s for textile industry and offer financial assistance for technology acquisition for value chain.
For cotton ginning and spinning, the new policy will enhance growth of cotton farmers and ginners, by way of better price realization and to enable them to withstand uncertainty due to price fluctuation, nationally and internationally and encouragement will be provided to establish new cotton spinning activities to strengthen the value chain. Among incentives, it will offer –
- Interest subsidy of 5 percent, without ceiling for the period of five years on new plant & machinery for Ginning & Processing;
- Interest subsidy of 7 percent on new plant & machinery for cotton spinning, as well as for second hand imported cotton spinning machinery with certain conditions, without ceiling for the period of 5 years;
- Power tariff concession on new investment for cotton spinning at the rate of Re.1 per unit for 5 year period
Full details at: http://www.fibre2fashion.com/