Budget boost for textiles

– Two mega clusters (in Andhra Pradesh and Jharkhand)

– Dormitories for women workers in the mega clusters of handloom and powerloom

– Three Weavers’ Service Centres (one each in Mizoram, Nagaland and Jharkhand) to provide technical support to poor handloom weavers.

– Rs. 500-crore pilot scheme for promotion of geo-textiles in the North-East

– Rs. 70-crore powerloom mega cluster in Ichalkaranji in Maharashtra to help local artisans and weavers

– Rs. 5,000-crore Venture Fund with SIDBI to enhance availability of equity to the MSME sector

– Weighted deduction at 150 per cent of expenditure incurred on skill development in the manufacturing sector to overcome shortage of skilled manpower

– To modernise weaving sector, full exemption to automatic shuttle-less looms from 5 per cent basic customs duty

– Full exemption from basic duty to automatic silk reeling and processing machinery and its parts

– Retention of existing concessional rate of 5 per cent basic customs duty to new textile machinery; second-hand machinery to attract 7.5 per cent basic duty

– Basic customs duty on wool waste and wool tops reduced from 15 per cent to 5 per cent

– Full exemption from basic customs duty to aramid yarn and fabric used for the manufacture of bullet-proof helmets

– 10 per cent excise duty applicable to branded ready-made garments with abatement of 55 per cent from the retail sale price. Along with increase in duty to 12 per cent, abatement enhanced to 70 per cent. As a result, the incidence of duty as a percentage of the retail sale price would come down from 4.5 per cent to 3.6 per cent.

– Extension of weighted deduction of 200 per cent for R&D expenditure in an in-house facility beyond March 31, 2012, for another five years to promote investment in R&D.