Gujarat Textile Policy-2012Gujarat Textile Policy-2012for the growth and opportunities
Dr. Chandan ChatterjeeDr. Chandan ChatterjeeDirectorDirector
The Center for Entrepreneurship DevelopmentThe Center for Entrepreneurship DevelopmentINDUSTRIES COMMISSIONERATEINDUSTRIES COMMISSIONERATE
Govt. of GujaratGovt. of Gujarat
.an integrated approach to
strengthen the value chain
Farm to Fibre to Fabric to Fashion to Foreign
strengthen the value chain
Enhancing sustainable growth of
Farmers & Industries
iNDEXTb/Proj.&Tech/June 2012
Segment analysis
Capital intensive
Power intensive
Employment intensiveSpinning 43%
Weaving 29%
Regional and balanced
development for all
segment
Weaving 29%
Processing 5%
Knitting & Apparel 6%
Technical Textile 13%
Textile & Spinning Park 4%
Textile Value Chain & Prevailing SupportAhmedabad Town of Export Excellence for Textile, Surat Silky City, Jetpur Handmade Printing
3
Gujarat
Present Capacity Expected Capacity by 5 years
Ginning 1200 units
Spinning 12 lakhs workingSpindle working
Ginning Additional 200 modernized units
Spinning Tripling Capacity with additional 25 lakhs Spindle with modern technology
Present Capacity v/s Expected Capacity by 5 years
Spindle working
Weaving 50,000looms(cotton)/8lakh (filament)
Processing (medium &large) 500 Units (Yarn, Fabric &Garments)
Knitting & Apparel (small& medium) 2,00,000 machines
25 lakhs Spindle with modern technology
Weaving Additional 1,00,000 Shuttle less and Automatic shuttle looms
Processing Additional 60 Units (Yarn, Fabric & Garments)
Knitting & Apparel - Additional 2,00,000 stitching & supporting machines
7
Prevailing supports by GoI and impact
TUF Scheme
(*) 5% Interest Reimbursement on plant & machinery without
any ceiling in all Textile Sector; but 4% incase of only Spinning
Additional 10% Capital Subsidy for new shuttleless loom
(Weaving), Processing, Garment and Technical Textile
25% Capital Subsidy for Handloom & Silk Sector
2% Interest Subvention Scheme Foreign Trade Policy 2% Interest Subvention Scheme Foreign Trade Policy
(*) Note
a) Investment in building, Pre-operative expenses and margin money for working capital for
Apparel & Handloom (50% caps) and humidification plant, compressor, RO Plant, Beam
knotting (10% caps)
b) Powerloom in SSI (Rs. 5 cr) 20% margin money (Max Rs. 60 lakhs for second hand
imported shuttleless loom and independent preparatory units but Rs. 100 lakhs for new
shuttleless loom) 15% promoters
c) Bench marking of price for imported second hand shuttleless weaving
d) Indigenous Machinery Manufacturers are benchmarked
e) Interest Reimbursement - for 7 years considering 2 years for implementation/moratorium
period
f) Rs. 178 crore 11th Plan + Rs. 158.86 crore5
Prevailing and New Policy Supports
Gujarat
New Plant &
Machinery as
per TUF
Prevailing Support under
Policy 2009 Textile
New Policy Support(For new, existing, expansion,
diversification & modernisation units)
Ginning MSME Interest subsidy of 5% Limit- Without any ceiling- 5 yr period
Investment in new plant &
machineries
Or MSME
SpinningEligible size 5,000 spindles
Interest subsidy of 5%,
Limit- Max Rs. 40 lakhs /year
for 5 yr period
Investment in new plant &
machineries
Interest subsidy - 7%,
Limit- Without any ceiling- 5 yr period
Power tariff subsidy @20%
VAT exemption
Assured supply of Lignite for captive
power plant
Investment in new plant &
machineries and also in Second Hand
Imported machinery (60% of purchase
value)
8
Gujarat
New Plant &
Machinery as
per TUF
Prevailing Support
under Policy 2009
Textile
New Policy Support
Weaving
(Powerloom)
Interest subsidy of 5%,
Limit- Max Rs. 30 lakhs
/year
for 5 yr period
Interest subsidy of 5%
Limit- Without any ceiling- 5 yr period
Investment in new plant & machineries
and also in Second Hand Imported shuttle
Prevailing and Proposed Policy Supports
for 5 yr period
Investment in new plant &
machineries
and also in Second Hand Imported shuttle
less loom (Rs. 8 lakhs as per TUF and as
amendment from time to time)
Dyeing
Processing
MSME Policy Interest subsidy of 5%
Limit- Without any ceiling- 5 yr period
Investment in new plant & machineries
Knitting,
Apparel &
Carpeting
Interest subsidy of 5%,
Limit- Max Rs. 30 lakhs
/year
for 5 yr period
Min Rs. 5 crore investment
in new plant &
machineries
Interest subsidy of 5%
Limit- Without any ceiling- 5 yr period
Investment in new plant & machineries
9
Gujarat
New Plant &
Machinery as
per TUF
Prevailing Support
under Policy 2009
Textile
New Policy Support
Technical
Textile
Interest subsidy of 6%,
Limit- Max Rs. 125
lakhs/5 year
Investment in new plant
Woven, non-woven & converter units
Interest subsidy of 6% without any ceiling
Limit- Without any ceiling- 5 yr period
Prevailing and Proposed Policy Supports
Investment in new plant
& machineries Investment in new plant & machineries and
also in Second Hand Imported machineries
(60% of purchase value)
Center of Excellence
Technology
acquisition
and
upgradation
Financial assistance up
to 50%
Limit - Max Rs. 25
lakhs
Machinry Mfg included
10
Skill Man power.an approachSkill Man power.an approach
10
Gujarat
New Plant &
Machinery as
per TUF
Prevailing Support under
Policy 2009 Textile
New Policy Support
Apparel Training
Institute
Training Institution
Upgradation of
facilities in ITIs
Assistance up to 85%, Max Rs.3 crore, excluding land cost
Need based Support towards equipment
To go for other Skill support
Compulsory Skill Assessment
Prevailing and new Policy Supports
facilities in ITIs
Training Centers
Reimbursement of
tuition fees
Assistance for
training to trainers
equipment
Assistance up to 50%, Max Rs. 20
lakhs
Assistance @ 50%, up to Rs. 5,000 per
trainee per course
Reimbursement of training cost with
maximum of Rs. 5,000 per trainer/week
Compulsory Skill Assessment
Assistance @ 50%, up to Rs.
7,000 per trainee per course
Reimbursement of training
cost with maximum of Rs. 7,000
per trainer per week
Powerloom Sector Stipend to Trainees Rs. 1500 per
month for three months
Assistance for advanced training to
power loom owner/jobber and worker
Allowances to weavers @ Rs. 200/day
and jobbers @ Rs. 300/day
Stipend to Trainees Rs. 2500
per month for three months
No Change
11
Industrial Park with world class infrastructure
12
Gujarat
New Plant &
Machinery as
per TUF
Prevailing Support under
Policy 2009 Textile
New Policy Support
Textile & Apparel
ParkMin 20 no. of manufacturing/serviceunits
Private developers
Viability gap funding of up to 20% of
Industry Association / Industrial
House/Co-operative society OR
any Government body like GIDC
Assistance of up to 50%, Max
Rs. 10 crore
Prevailing and new Policy Supports
Viability gap funding of up to 20% of
total project cost by GIDB
Support to Industries / Industries
Associations
Assistance of up to 50%, Max Rs. 10
crore
Rs. 10 crore
Min 20 no. of
manufacturing/service units
Spinning Park
Min 10 no. of Spinning units in
min150 acre land
Assistance of up to 50%, Max
Rs. 30 crore
Upto 35% of land may be
utilized for weaving units in order
to support spinning activities
Stamp duty exemption to
developers & units in park
12
Encouraging Environment Friendly &Energy Efficient Technology
Support for Modernization of the Unit by
way of interest subsidy
Investment should be more than 25% of cost
of existing plant & machineries
Support for Energy & Water Conservation to
14
existing units (more than 3 years)
Assistance up to 50%, Max Rs. 50,000 for Energy
Audit and Water Audit (for processing units)/Envio
Assistance up to 20% of cost of equipments, Max
Rs. 20 lakhs
Support for Environmental Compliance
Remission of VAT
Power Tariff subsidy Rs 1/ unit
Duty Exemption
Gujarat Textile Policy-2012
Thank You
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