Gujarat announces new Textile Policy 2012

05 Sep '12

6 min read

- Interest subsidy of 7 percent on new plants and machinery, without ceiling for a period of 5 years, for garment and made-ups;

- Refund of VAT paid by the unit on purchase of raw material and remission of tax collected on readymade garments, as VAT concession (applicable to the extent of investment in Plant & Machineries).

The technical textiles segment is considered to be one with enormous industrial growth in the State and also great potential world-wide with applications in industries like agriculture, medical, automobile, defense, etc. Development of this segment will cause high value addition on textile value chain enabling to get better realization and sustainability. In order to promote this promising segment, the policy will offer –

- Interest subsidy of 6 percent on new plant and machinery, besides second hand imported machinery with certain conditions allowed, without ceiling for the 5 year period.

For Apparel Training Institutes/Centers the objective is to create skilled manpower, and specifically for rural women employment, an approach will be made to establish skill development activities as per the need. For establishing Apparel Training Institutes, the policy will provide –

- Assistance up to 85 percent, subject to maximum Rs.3 crore, excluding land cost, for setting up Training Institution;

- Need-based support towards equipment for up-gradation of facilities in ITIs.

- Assistance up to 50 percent, subject to maximum Rs.20-lakh,for Training Centres;

- Reimbursement of tuition fees to trainees as assistance @ 50 percent, up to Rs.7,000 per trainee per course;

- Reimbursement of training cost with maximum of Rs.7,000 per trainer per week, as assistance to training to trainers;

For training cost for skill development for weaving -

- Stipend to trainees @ Rs.2,500 per month for three month, and allowance to weavers @ Rs.200/day, and to jobbers @ Rs.300/day as assistance for advanced training to powerloom owner/jobber and worker – as training cost for skill development for Power loom / Weaving Sector.

The policy considers that technology acquisition & up-gradation is necessary to withstand competitive environment both nationally and internationally, so entrepreneurs will be encouraged to acquire technology from abroad. For the purpose, incentives like –

- Financial assistance up to 50 percent, with maximum of Rs. 25 lakh per Process/Product, once during the operating period of the scheme. The incentive is also available for manufacturing textile machinery for technology acquisition for entire value chain.

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