The western Indian state of Maharashtra is inviting investment in the state's textile sector from entrepreneurs of the neighbouring Gujarat state.
The Maharashtra government plans to showcase the state as a favoured business destination in the light of the New Textile Policy announced earlier this year.
A team of government officials would visit the textile city of Ahmedabad, once called Manchester of the East, to invite textile manufacturers and entrepreneurs to invest in setting up of manufacturing units in Maharashtra.
Maharashtra Minister of Textiles, Mohammed Arif Naseem Khan, who would be leading the government delegation to Ahmedabad in second half of May this year, said the New Textile Policy is getting good response from textile producers.
He said the textile manufacturers' associations from Maharashtra, Tamil Nadu, and Karnataka have also expressed keenness to set up new projects in the state.
The New Textile Policy aims to attract a total investment of Rs. 400 billion in the sector and create 1.1 million new jobs in the state in next five years.
For new textile projects in Vidarbha, Marathwada and north Maharashtra regions, the government will introduce a 10 percent capital subsidy scheme. The government will also provide an interest subsidy of up to 12.5 percent for setting up new textile units in these cotton growing regions.
Mr. Khan said the new textile policy would stop suicides by cotton farmers in Vidarbha region, as they will now get a better price for their harvested crop.
In addition to the projects under the New Textile Policy, the Minister said, 14 textile parks would be set up in Maharashtra under a Central Government's scheme, wherein the Centre and the state would together give 49 percent capital subsidy to the companies that are willing to invest a minimum of Rs. 7 billion for each textile park that can host at least 50 units.
Fibre2fashion News Desk - India