New textile policy expects to pull Rs 30,000cr investment through 74 textile parks

With government planning to announce a new textile policy by April this year with main focus on manufacturing of value added products and export oriented goods that will benefit the economy. The government is also expecting Rs.30,000 crore investment in 74 textile parks, said Minister of State for Textile Santosh Gangwar at Make in India Week held in Mumbai.

The government has given approval to 24 Textile Parks in the last one year, the rest were cleared by the previous government. So in total 74 textile parks will be set up, which will attract an investment of Rs 30,000 crore.

He further said that the government has decided that they will not sell the National Textile Corporation (NTC) lands located in various cities. In fact, they are looking at starting some other non-polluting industry on them.

Stating that India is the highest producer of cotton in the world, the minister said that during the current cotton season, farmers have got prices, which are more than the Minimum Support Price (MSP). The cotton marketing year runs from October to September.

Textile Secretary Rashmi Verma said that the government has come up with revised TUF(Textile Upgradation Fund Scheme) to give capital subsidy to the new units that will be set up and also to the existing ones which want to bring in modern machinery and increase their output.

The guidelines for the new scheme will be notified by the end of the month. It will be used to bring in more investment in the sector, she added.

The government will also give incentives to the eastern states, including Bihar, Jharkhand and the north eastern states for setting up textile units.

In the upcoming Budget, the Textile Ministry proposes to set up two mega textile parks in the coastal areas .

Further, Verma said that companies should look at penetrating in other emerging markets like South America, Russia and Africa as Vietnam and Bangladesh have already overtaken India.

With the Chinese textile sector slowing down, countries like Russia, which were completely dependent on China have left a vacuum. Indian companies can take advantage of this.

Verma said that they are facing some teething problems, but it will be cleared soon. They are also concerned of reverse FDI as some of the big players are moving to countries like Ethiopia, Vietnam and Bangladesh to set up units.

At present, lack of branding, quality control and mandatory zero liquid discharge are some of the issues that concern the textile industry.

A lot of work needs to be done. Zero liquid discharge being made mandatory is leading to closure of some units besides rise in cost of operations. They have taken up the matter with the environment ministry to relook at the clause.

The Ministry is on the threshold of coming up with important changes in labour laws. This matter has been taken up with the labour ministry. A notification will be issued before March 31 on women being employed for night duty. Labour ministry is writing to all secretaries of states to allow women to work in night shifts.

The Textile Ministry along with the Labour Ministry is also working on rationalisation of wages for contract workers.