Karnataka textile policy to generate employment opportunities

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Karnataka textile policy to generate employment opportunities

The Karnataka state government has announced its new textile policy for 2013-18 attracting an investment of Rs 100000 million. The government intends to make the state a preferred textile destination and create employment opportunities for over 50000 million people during the five year period.

One of the key features of the new policy is that interest subsidy will be provided to small and medium investors in projects worth up to Rs 990 million. This amount will be a part of the amount earmarked for credit-linked capital subsidy. MSMEs with a maximum investment of Rs 100 million will be provided credit-linked subsidy of 15-20 % with a ceiling of Rs 20 million. For units investing Rs 100-990 million, credit-linked capital subsidy of 15-20 % will be provided with a ceiling of Rs 60 million.

Entrepreneurs belonging to Scheduled Castes and Scheduled Tribes will be provided an additional subsidy of 20 % and those belonging to minority, ex-serviceman, physically challenged and women categories will be provided with an additional subsidy of 5 %. Under the special credit-linked capital subsidy plan, an additional 10 % on the value of plant and machinery of a maximum of Rs 2.5 million and an additional 20 % on the value of plant and machinery of maximum of Rs 3 million for integrated textile units will be given.

For existing units taking up modernization, a subsidy of 15-20 % with a ceiling of Rs 10 million will be provided while sick cooperative spinning mills will be given a subsidy of 20 % with a ceiling of Rs 20 million for their revival and modernization. Under the policy, new units will be provided 100 % entry tax reimbursement and 100 % stamp duty reimbursement in Zone I and 50 % in Zone II. For mega projects incentives will not exceed 15 % of the project cost or a maximum of Rs 500 million. Power subsidy of Re 1 per unit will be provided to all new units.The government will set up 145 skill development centers in various disciplines of textiles for the benefit of the unemployed youth.

For textile industries establishing their own infrastructure facilities at textile parks in green field and brown field zones a subsidy of 40 % with a ceiling of Rs 200 million will be provided. The government will also provide a financial assistance of Rs 100 million for establishing a centre of excellence for textiles and for the overall and integrated development of the sector.