Gujarat government announces textile policy; targets Rs 20,000 crore investment, 25 lakh jobs

AHMEDABAD: Gujarat government on Wednesday announced new textile policy for next five years. It expects an investment of Rs 20,000 crore over five years, 25 lakh new jobs, of which 50% will be for rural women. It focuses on 4Fs (farm, fibre, fabric, foreign). It focuses on value addition of cotton within the state. At present 90% of state's cotton is sold in other states. Gujarat produces close to 30% of country's cotton.

Salient features of the policy

1. Envisages doubling of spinning capacity 25 lakh spindles to 50 lakh spindles in five years, encourage cotton spinning and weaving in cotton producing areas of the state

2. Interest subsidy of 5% for technology upgradation for ginning, spinning weaving processing and ready made garments and 7% subsidy for purchase of plant and machinery

3. Exemption on VAT on produce

4. Relief of Rs 1 per unit on power tariff for spinning and weaving for five years, assured lignite for captive power plant

5. Assistance of 50% or upto Rs 50,000 for Audit of energy, Environment, Water conservation. Relief of 20% or Rs 20 lakh on plant machinery for audit

6. Industrial parks on PPP mode in cotton growing areas. Relief of Rs 30 crore or 50% of total cost for creation of common infrastructure in Composite parks

7. Garment Apparel Park exempted from stamp duty, assistance of 50% or Rs 10 crore for common infra in parks