FICCI Officials Visit UP CM Yogi; Welcome State Government's Draft Textiles Policy

Trade & Policy

FICCI Officials Visit UP CM Yogi; Welcome State Government's Draft Textiles Policy

L K Jhunjhunwala, Chairman of FICCI's UP State Council and S K Khandelia, Co-chairman of FICCI's Textiles Committee attended the meeting called by the Uttar Pradesh Chief Minister Yogi Adityanath recently, to discuss his state’s draft textile policy.

S K Khandelia welcomed the draft textiles policy of UP which will set the vision for the sector in the state.

Incidentally, prior to the release of the draft policy, Federation of Indian Chambers of Commerce & Industry (FICCI) had submitted detailed suggestions to the UP government for formulation of a vibrant and competitive textiles policy.

Commenting on the draft policy, Khandelia said “It is heartening to see that many of the suggestions submitted by FICCI like Open access for existing as well as new units, capital subsidy for new and existing units over and above TUFS, interest subsidy over and above Central Government's subsidy for technology upgrades have been included in the draft Policy. All this would help in attracting investments in the sector in value added segments”.

Jhunjhunwala said, “UP has abundant labour force that currently is largely employed in the industry outside the state. This policy has the potential to provide jobs to millions of natives as it is a labour intensive sector”.

There were other suggestions also made by FICCI which the UP state government may like to consider. These include a higher subsidy on electricity tariff, with 1.5 per unit power subsidy in tier 1 cities/ areas, 2 per unit power subsidy in tier 2 cities / areas and 2.5 per unit power subsidy in tier 3 cities/areas.

Other suggestions include a Rs 20-crore subsidy for each cluster/park in addition to the central government's subsidy of Rs 40 crore under the Scheme for Integrated Textiles Park (SITP).

FICCI had also suggested that the UP government could provide 50% of the common effluent treatment plant (CETP) cost or Rs 20 crore, whichever is less for setting up a CETP in new or existing textile parks/ clusters.