Maharashtra textile policy envisages Rs. 40,000-crore investment

The Maharashtra Cabinet has cleared the textile policy which aims to bring in investment to the tune of Rs. 40,000 crores and create employment opportunity for around 11 lakh people. The highlight of the policy is that it provides for 12.5 per cent interest subsidy and 10 per cent capital subsidy for new co-operative and private sector textile units in the cotton growing belts of Vidarbha, Marathwada and North Maharashtra.

Concessions under the policy will be applicable to all areas concerned with the textile industry like cotton ginning and processing, weaving / knitting, readymade garment manufacturing, processing of fibre / yarn / fabrics / garments, modernisation / expansion and rehabilitation of existing textile units, textile parks, and skill development activities, among others. Similarly, in the rest of the State, the interest subsidy is 10.5 per cent which includes five per cent from the Centre and four-five per cent from the State industrial policy, besides the recent provision.

The State Textiles Minister, Mr. Mohammed Arif Naseem Khan, said the policy aims at development of the cotton growing belt of the State and welfare of the farmers in the region. The policy also proposes insurance, housing and medical health scheme for handloom and powerloom workers. “Because of the subsidies, the State exchequer will face a burden of Rs. 450 crores every year.”

According to him, out of the 22 lakh powerloom units in the country, Nagpur, Bhiwandi, Malegaon and Solapur districts of Maharashtra have around 10 lakh units.

“The Government had released loans to the tune of Rs. 1,919 crores to as many as 123 co-operative textile units in the State up to the 10th Five-Year Plan (2002-07), of which only Rs. 54 crores has been repaid,” he added.

At present, as many as 59 co-operative textile units and 110 privately-run textile units are functioning in the State.