The Haryana government announced the state specific Textile Policy aiming for integrated development of the textile industry in the state, at the same time remove the current mismatch across the value chain, Credit rating agency ICRA has said.
The new state policy introduces measures such as capital subsidy at 10 per cent for investment in Plant and Machinery (P&M) eligible under ATUFS (Amended TUFS). This will reduce the project cost upon commissioning.
The interest subsidy ranges from four to six per cent in the scheme for all types of new textile units, depending on the area/category of district and; support for establishing textile parks in terms of additional fiscal incentives as well as infrastructure augmentation. This is in addition to the central government’s scheme for Integrated Textile Parks (SITP) to support the overall industrial growth in this sector.
The policy is structured to provide relatively higher incentives in Category C and D blocks (defined under the Enterprises Promotion Policy, 2015, as industrially backward areas), as compared to Category A and B Blocks (defined as industrially developed and intermediate developed areas).
Senior vice president and group head ICRA, Jayanta Roy, said that in this context, the benefits proposed in the Haryana Textile Policy are expected to make the state competitive for investments for the textile sector going forward. Besides, the policy will also supplement the central one for the textile sector.
States of Maharashtra, Gujarat, Madhya Pradesh among others already have their own textile policies in place for facilitating investments in the sector. These states have benefited over the years from these policies, as is evident from the capacity additions.
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