The State Government of Maharashtra (India) is preparing to announce its new textile policy in the next two months as it aims to attract the existing entrepreneurs of the country to invest in the state. Maharashtra saw the migration of all types of business units in the sector, given a similar business environment in Gujarat and in the state itself.
Gujarat and other major states like Tamil Nadu, Karnataka, Andhra Pradesh and Telangana have either renewed their existing textile policies or introduced new ones to attract investment. The Government of Gujarat is offering electricity at Re 1 a unit, besides interest subsidy at 5 per cent annually, with a ceiling of Rs. 7.5 crores. Through this, the state estimates it would attract new investment worth Rs. 20,000 crores by the year 2022.
Apart from Centre’s technology upgradation fund scheme and other incentives, many major cotton-growing states in India are equipped with investment-friendly policy in place.
Maharashtra has now too planned to make its textile policy such that it focusses more on power availability at cheap rates. The state has started taking inputs from co-operative and other sectors involved in the garment value chain. It aims at introducing new textile policies in the next two months to stop the migration of units to other states. These states have attracted investment in the entire textile chain with incentive schemes, like electricity and labour.
Readymade Kapad Utpadak Sangh has requested the Maharashtra Government to make provision of monthly skill development fund along the lines of Gujarat. The neighbouring state offers Rs. 4,000 per man and Rs. 3,000 per woman as the fund for monthly skill development.
Ichalkaranji and Bhiwandi are among the few major places in Maharashtra known for housing textile units. Recent policy changes such as demonetisation and GST (Goods and Services Tax) has hit these units badly. The new textile policy is expected to provide a sigh of relief to the sector.
