Maharashtra's new textile policy attracts 1,331 projects

05 Mar '14

2 min read

The new textile policy, unveiled by the Maharashtra government about one-and-half years ago, has so far attracted 1,331 projects amounting to investment of Rs. 120 billion, state Textile Minister Mohammaded Arif (Naseem) Khan has said, reports Business Standard quoting PTI.

Few of the projects are already in the pipeline, Mr. Khan said at a press conference in Mumbai. He said that Rs. 510 million capital subsidy has been given to ten textile parks and another Rs. 160 million interest subsidy has been disbursed to 50 projects.

According to the Minister, the delinking of textile sector investment in the state from the Central Government’s Technology Upgradation Fund Scheme (TUFS) has helped the state receive Rs. 120 billion investment proposals despite global economic meltdown.

He was optimistic that the state would be able to cross the target of attracting Rs. 400 billion investment earlier than the five-year time period envisaged for the same.

Explaining the benefit of delinking the state textile policy from TUFS, the Minister said it helps investors as do not have to wait to receive the Unique Identification (UID) number, which is mandatory under TUFS, and they can directly submit their proposals to the state government.

Under the new textile policy, the Maharashtra state government provides 10 percent capital subsidy for projects coming up in the cotton growing regions of Marathwada, Vidarbha and North Maharashtra. There is also a provision to provide 7 percent interest subsidy for all new projects to be set up in the state, which includes spinning mills, ginneries, pressing and processing units and garment manufacturing units. A six percent interest subsidy is provided for technical textile and composite units.

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