New policy to boost Maharashtra textile industry

15 Feb '16

3 min read

There is finally some good news for Maharashtra's cotton sector. The new textile policy unveiled on Sunday which promises capital grants of up to 25 to 30 per cent to self-financed investors is aimed at giving better payment to three lakh farmers in the state's cotton belt.

The new policy unveiled at the Make in India Week in Mumbai is based on the theme 'Cotton to Cloth, Farm to Fashion'. Currently, only textile units which had taken bank loans were eligible for capital subsidy.

Now, self-financed textile units in Vidarbha, Marathwada, and North Maharashtra regions that produce the bulk of the state's cotton, will also be eligible for 25-30 per cent capital grants from the state.

Textiles minister Chandrakant Patil announced the policy to revive the sector at a panel discussion on opportunities in textiles in Maharashtra at the Make in India week.

Chief Minister Devendra Fadnavis said that his government state has laid stress on investments to strengthen the linkages that would take into account the farmer who produces cotton to spinning of yarn to ready-made garments in industrial units, complete with innovative design and marketing.

Patil underlined the huge potential of textile mills in the state and said that Maharashtra needs over 250 spinning, 200 processing and 2,000 garment units in order to utilise the cotton produced in the state. He invited investors to invest in the state which would benefit them as well as farmers and youth.

Dilip Jiwrajka, Managing Director of Alok Industries, which operates four textile units in the Maharashtra, welcomed the initiative. He said textile units in the state should also get cheaper electricity like in neighbouring Gujarat.

R.K. Dalmiya, chairman of the Cotton Textiles Export Promotion Council, said the initiative will give Maharashtra a competitive edge over Tamil Nadu which has a heavy concentration of textile mills.

Maharashtra's Industry minister Subhash Desai said the Maharashtra Industrial Development Corporation (MIDC) was setting up 10 integrated textile parks in the state. He said the government is targeting an investment of Rs 40,000 crore for these parks in the cotton producing regions of Vidarbha, Marathwada and North Maharashtra which would generate more than 11 lakh jobs.

The state government has reduced the premium on MIDC land to encourage investors to invest in these parks, Desai said. One of these parks has come up at Nandgaon Peth in Amravati district in Vidarbha where Raymond Industries has signed an agreement for an investment of Rs 1400 crore. (SH)

Fibre2Fashion News Desk – India

More Textiles News - India...