New textile policy brings in Rs.3,800 Cr investment

Mumbai, Oct. 22: The textile sector is on the upswing in Maharashtra due to the new textile policy. Since April, the State has managed to attract Rs.3,834 crore in investments in 411 new textile projects, said State Textile Minister Arif Naseem Khan on Monday.
Addressing the media after reviewing the process of policy implementation, Khan said that the new projects would provide about 30,000 jobs in the State. Most of the investment has happened in cotton spinning and ginning units. Textile companies are keen to set up units in Vidarbha, Marathwada and the Khandesh due to the ready supply of cotton, he said.
“Due to the policy, the sector is likely to get Rs.40,000 crore investment in the next five years and generate employment for 11 lakh people,” Khan said.
Khan said that the policy was not a single-window policy but a ‘zero-window policy,’ in which projects would not come to the Government for clearance,
The due diligence is done by banks. If a company manages to get its loan sanctioned under the Technology Upgradation Fund Scheme from banks, then it is eligible for subsidy, he said.
The Union Government initiated the Scheme in 1999, and it has attracted over Rs.4 lakh crore investments in the sector, as of date.
Textile Secretary Sunil Porwal said that all the 411 projects have achieved financial closure. For the Rs.3,834 crore investments, about Rs.400 crore will be the subsidy outgo spread over seven years.
The policy has been attracting investment because of the capital and interest subsidy component built into the scheme. Due to the zero-window policy, clearance is quick.
Khan also added that 18 spinning mills are keen to set up their units in the State, which would attract Rs.2,000 crore in investments. However, since they don’t fit in the Scheme, their projects are awaiting approval from banks, he said.  

Courtesy: The Business Line