Karnataka attracts textile investors with slew of incentives

06 May '10

2 min read

Karnataka, with a newly prepared pro-industry Textile Policy, has turned into the country's best investor-friendly destinations for textile producers, has announced a number of incentives on investments in the textile sector.

This was put forth to industrialists from the Tirupur Knitwear cluster by a visiting team of senior textile delegation from Karnataka.

The committee, while attempting to pull in investments to Karnataka's textile and garment sector, spoke to the members of Tirupur Exporters Association.

Credit Linked Capital Subsidy (CLCS), reimbursement of entry tax, funding for common effluent treatment plants and financial assistance for human resource development are some of the amenities that will lure the investors, informed these delegates.

Since every zone has a different CLCS rate, they have been segregated into three sections such as, the most backward talukas as Zone-1, more backward talukas as Zone-2, while the forward talukas have been incorporated in Zone-3.

CLCS for the new units coming up in Zone-1 has been fixed at 20 percent of the total value of fixed assets, inclusive of the cost of land, building and machinery, but nothing in excess of Rs 2 million.

Likewise, CLCS for units in Zone-2 has been set at 15 percent of the capital cost with a ceiling of Rs 1.5 million, whereas for Zone-3 there is no CLCS benefit.

Power subsidy at the rate of Re 1 for every unit consumed, is one of the main concessions that has been extended to the prospective investors.

Fibre2Fashion News Desk - India

More Textiles News - India...