Gujarat declares its textile policy

The Gujarat industries and mines department gave an adrenaline shot to the textile sector by declaring its “scheme for assistance to strengthen specific sectors in the textile value chain” policy, which will be valid from September 2018 to December 2023.

From credit linked interest subsidy on loans, subsidy on power tariffs, incentives for complying with water conservation and environmental pollution norms to dolling out benefits for setting up textile parks, the Gujarat government has intended that the new incentives will boost textile exports, production, stop migration of units towards Navapur in Maharashtra.

The power subsidy scheme intends to give a reprieve of Rs 3 per billed electricity unit (Kwh) for textile units having low tension power connection and Rs 2 per billed unit (Kwh) for units having high tension power connection. The scheme will provide special incentive for new units, which intend to go for forward or backward integration. Another important feature of the scheme is the interest subsidy of a maximum of Rs 20 crore per annum. The interest subsidy will be eligible on loan amount disbursed for gross fixed capital investment.