Gujarat announces new Textile Policy 2012

05 Sep '12

6 min read

- Stamp duty exemption to developers and units in parks, and assistance up to 50 per cent with maximum ceiling of Rs.10-crore for common infrastructure in Parks and Other Textiles Activities;

- Refund of Value Added Tax (VAT) paid by Cotton-based units like ginning, spinning and weaving on purchase of cotton / cotton yarn and remission of tax collected on cotton yarn (applicable to the extent of investment in Plant & Machineries).

For modern weaving, knitting and machine carpeting, the new policy will strengthen the value chain; develop cotton-based weaving and knitting activities to boost the growth of cotton spinning in the State.

Technology up-gradation of existing synthetic and filament power-loom weaving industry will also be done to fulfill the requirement of international market of art silk industry. Gujarat is a leading producer of carpet wool, so, encouragement will be provided to establish modern carpet manufacturing activities in the State. The incentives for these activities will be –

- Interest subsidy of 5 per cent on new plant and machinery, without ceiling, for weaving, knitting, machine carpeting and other textile related activities, also on second hand imported weaving (power loom) with certain conditions, for the period of 5 years;

- Power tariff concession of Re.1 per unit for the 5 year period for weaving.

For the fabric dyeing & processing segment, the policy envisages substantial value addition through technological up-gradation and modernization in dyeing and processing sector, and encourages setting up of energy-efficient and environment-friendly modern dyeing and processing units. By way of incentives the sector will receive –

- Interest subsidy of 5 percent on new plant and machinery, without ceiling for the period of 5 years, in Dyeing and Processing;

- Assistance up to 50 percent for audit report amounting to maximum of Rs.50,000, assistance up to 20 percent of cost of equipment subject to maximum Rs.20-lakh, eligible once in 2 years during operation period of the scheme, as support for energy and water conservation and environmental compliance, for Processing Sector and Entire Value Chain.

The garments & made-ups segment is considered a driving force for overall growth of textile value chain. It is also highly labour intensive mainly for rural women. Encouragement will be provided to establish new and modern garment and made-up units even in interior parts of the State. In order to attract investments, the state will offer –

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