Karnataka textile policy modified to strengthen textile and garment units

Karnataka comparing with the policies of Maharashtra and Gujarat has made some modification in its Javali Neethi (Textile Policy) 2013-18 with an aim to not only strengthen its textile value chain activities but also to spur technical textiles and go for an aggressive push for geographical distribution of textile and garment units.

The State is encouraging investments in almost all the sub-sectors of textile in the form of Textile Parks, Mega Projects, Integrated units and MSME units.

As they are very strong in garmenting; the policy focuses on the dual approach of development i.e. strengthening of existing value chain activities and filling the gaps in creating the facilities for value chain activities, said a senior government official.

With these changes, they are aiming to attract ₹8,000 crore worth of investment by 2018 and create four lakh employment in the state.

The policy also focuses on strengthening and enhancing capacity of all the essential value chain activities such as spinning, weaving (handloom and power loom), including pre-loom activities, knitting, processing, garmenting, and other support ancillary activities like textile machinery manufacturing.

The modified policy has offered attractive packages as follows: Mega Project (investment of ₹100 crore to ₹500 crore), Ultra Mega Project (investment ₹500 crore to ₹1,000 crore) and Super Mega Project (investment more than ₹1,000 crore).

The basket of incentives in Non-HK Region Districts has been increased, as mentioned below: Mega Projects: 15 per cent or maximum ₹50 crore, whichever is less.

Ultra Mega Projects: An additional of 10 per cent on every investment of additional ₹10 crore on pro-rata basis in addition to the benefits of Mega Projects (if the investment is ₹1,000 crore, maximum ₹100 crore incentive will be provided).

Super Mega Projects: An additional of 5 per cent on every investment of additional ₹10 crore on pro-rata basis in addition to the benefits of Mega and Ultra Mega Projects (if the investment is ₹2,000 crore, maximum ₹150 crore incentive will be provided).

The official said that the basket of incentive are offered for credit linked subsidy, power subsidy, ESI / EPF reimbursement, entry tax and stamp duty reimbursement, ETP and interest subsidy.

They have made changes to create capacities across the textile value chain. However, scale and ecosystem are what is required to attract large textile units like in other traditionally strong textile States.

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