Karnataka textile policy fails attaining its Rs. 10,000 crore investment target

by Apparel Resources News-Desk

12-October-2019  |  2 mins read

Garment factory in Karnataka
Image Courtesy: thequint.com

The 2013-2018 Karnataka textile policy has failed to meet its planned investment and job creation targets.

While confirming this, the Comptroller and Auditor General of India (CAG) said that policy’s objectives of Rs. 10,000 crore investment target and 5 lakh job creation target have not been achieved. The shortfall was 63 per cent and 76 per cent, respectively.

In its economic social report for March ending 2018, CAG also said that there was also a significant decline in imparting skill development training to unemployed youth. In fact, the numbers have actually fallen from 2.96 lakh to 1.09 lakh owing to inadequate budget.

There were more fronts on which the policy failed!

Government’s plan of setting up 6 textile parks in Karnataka with integrated facilities too did not materialise. Similarly, Rs. 6.35 crore was irregularly released to an SPV in Kalaburgi despite its failure to meet the required conditions.

Substantiating on this, Anup Francis Dungdung, Accountant General Karnataka, reportedly said “There was inordinate delay in releasing incentives and subsidy amount to beneficiary units, which affected their cash flow. Besides, incentive/subsidy to one super-mega project was sanctioned by exceeding the admissible limit under the textile policy on extraneous grounds causing extra financial implications of Rs. 315 crore.”

He also said that Rs. 84.53 crore released for the execution of different schemes was retained in the bank for a period of 2 to 5 years without any utilisation.

There were more such cases! The department, in one case, paid Rs. 51.89 crore to Bescom as penal interest for not clearing the bills in full.

Share This Article