Home / Knowledge / News / Textiles / Concerns remain over new Maharashtra textile policy
Concerns remain over new Maharashtra textile policy
10
Jan '12
The new textile policy approved by the Maharashtra State Cabinet last month has given rise to several concerns among textile entrepreneurs, especially those belonging to the interior Vidarbha region of the State.

The draft policy envisages interest subsidy of 12.5 percent and capital subsidy of 10 percent for cooperative and private textile units in the cotton growing regions of the State. For non-cotton growing regions, the interest subsidy would be 10.5 percent, of which a share of 5 percent would be contributed by the Central Government.

Through the new policy, the State government aims to attract Rs. 400 billion in investments in the textile sector and generate 1.1 million jobs.

Mr. Praveen Rander, Director, Shri Bhagirath Textiles Ltd., which has a well-established cotton trading activity at Nagpur, told fibre2fashion, “The new policy seems to be beneficial and it is expected to fetch a lot of fresh investment in the State's textile sector.”

“Since the past one year, it has been extremely tough for the spinning industry in Maharashtra, as the power costs are highest in India, and the labour costs are ever increasing. So, with the implementation of the new policy, there would be big expansion in spinning and value added sectors in Vidarbha region,” he adds.

Airing his concerns over the new textile policy, he mentions, “There are some concerns after going through the draft policy document. The total outlay of funds that has been planned is somewhere around Rs. 21.11 billion, which considering the kind of investment the government is expecting to the tune of Rs. 400 billion, is not at all sufficient.”

“Secondly, regarding the implementation of the scheme, apparently, from the draft document, it appears that it will have the same methodology as TUFS. So, some more clarity in that regard would be better. There is one clause which says that the policy will be further reviewed once the TUFS finishes in March 2012, which needs to be made clearer,” he continues.

“Lastly, and more importantly, objections are being raised that the policy is very Vidarbha biased and western Maharashtra will not benefit. In this context, if the draft remains unchanged until the final policy is announced, it will be the best policy ever. However, the government will have to ensure that the capital disbursement is done within 8-10 months because that is a very big component,” he adds.

Commenting on the pressure of western Maharashtra to make the policy uniformly applicable to the whole State, Mr. Suresh Agrawal of Vidarbha Industries Association (VIA), says, “For the last 2-3 years, we have been continuously pressing the government, especially the CM, to introduce a special textile policy for the main crop of Vidarbha region, i.e. cotton. Accordingly, we are quite hopeful about the new policy that was announced on the last day of the winter session. But now, under the pressure of the western Maharashtra lobby, the CM has indicated that the 12.5 percent subsidy would be made applicable to the whole State, instead of limiting to the cotton growing regions of Vidarbha and Marathwada.”


Must ReadView All

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Top executives
Indian retail players

Walmart's acquisition of Flipkart endorses the humongous opportunities in...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search