Maharashtra Launches New Textile Policy 2018-23 To Accelerate Growth

Trade & Policy

Maharashtra Launches New Textile Policy 2018-23 To Accelerate Growth

The Maharashtra state government plans to generate employment to the tune of 10 lakh with the state cabinet approving the new textile policy 2018-23. The policy aims at attracting an investment of INR 36,000 crore. According to state government sources, the policy majorly envisaged reduction of power tariffs and increase of capital subsidy to 45 per cent of spinning mills.

State officials from the textile department said that the policy carries to the fore the Make in Maharashtra concept and serves to strengthen the cotton industry and silk business. The policy in their opinion also has the objective of reduction in regional imbalance in the state. A greater amount of concessions would be given to start-ups and industrialists for investing in units in Vidarbha, Marathwada and North Maharashtra region. In addition, the cotton producing belt of Maharashtra will receive special attention in the wake of large number of suicide by farmers from this belt.

Under the new policy, schemes totaling INR 4,649 crore will be implemented. Also envisaged in the policy is creation of infrastructure for textile cluster and garment parks besides preparation of a proposal for setting up a textile university in the region of Vidarbha.

Subhash Deshmukh, state Textile Minister said, “We have made provisions in reducing power tariffs for spinning mills. Besides, spinning mills were given financial assistance in several installments. Now, we have decided to give them financial assistance in two installments only.”

On the sidelines of the policy meet, a government official pointed out that Maharashtra spinning mills were incurring heavy losses because of high tariff on power in Maharashtra compared to the neighboring states of Gujarat and Karnataka. Whereas, in Gujarat and Karnataka, the power tariff ranges from INR 4 to INR 6 per unit, the corresponding figure for Maharashtra is INR 9 per unit. To augment our subsidy, we will also encourage the spinning mills to set up solar power plants in their premises so that the power generated from these plants can be used by the spinning mills. This is expected to bring down the per unit tariff for power in the state to INR 3.5 and in turn would give a major boost to the spinning mills, the official added.

The new policy has also decided to substantially raise the capital subsidy for processing units, spinning mills and modernization of power looms. The breakup of the subsidy for the respective sectors was given as 45 percent for the processing units, and 25 percent for the spinning mills and modernization of power looms. In addition, there will be a grant of 20 percent subsidy for processing and garment units in Vidarbha, Marathwada and North Maharashtra.