Home / Knowledge / News / Textiles / Pak govt announces mark-up scheme for textile SMEs
Pak govt announces mark-up scheme for textile SMEs
17
May '12
According to a notification issued by the Pakistan Ministry of Textile Industry, in order to attract new investments in the textile sector of the country, the Federal Government would pick up 50 percent of the mark up with an upper cap of five percent or Pk Rs. 50 million per annum, whichever is less.

The Government would also provide grant of up to five percent to new projects involving equity investment in machinery and technology, based on their LC document with a maximum cap of Pk Rs. 50 million.

Likewise, projects with loan or equity based investment in machinery and technology with a cap of Pk Rs. 10 million would be allowed grant of up to 20 percent of their capital cost for new plant and machinery.

Based on LC document, such grant would be made available as investment support only to Small and Medium Enterprises (SMEs) qualifying under the State Bank of Pakistan Prudential Regulations for SMEs.

Under the Textile Policy 2009-14, the Government announced a technology up-gradation fund scheme, and later on issued Technology Up-gradation Support Order 2010 in April 2010, under which incentives are provided for textile machinery and technology.

The mark-up support and investment support would only be extended for technology and machinery identified in the "TUF documents", and which satisfy the eligibility norms set by a technical committee led by the Secretary. The committee would be constituted and notified by the Ministry of Textile Industry.

The scheme has been made effective with retrospective effect from September 1, 2009 and would remain valid till June 30, 2014. Payments under the scheme would, however, continue during the tenure of the loans stretching till June 30, 2024.

As per the SBP rules, the repayment period including the grace period should not exceed 10 years.

The machinery procured using the benefit from the 50 percent mark-up scheme with an upper limit of Pk Rs. 50 million may be utilized for producing or processing fibre, yarn, fabric, filament or any other product, entirely or partially produced from fibre with use of machinery to enhance its efficiency, productivity, information communication technology, energy and environmental compliance for machinery/technology identified and defined by the Technical Committee.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

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...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Karan Arora
Karan Arora

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search