Government working on policy to boost textile sector

The government is likely to announce its list of incentives in the form a policy for textile, handloom and silk in the coming weeks. Textile Minister Satyadev Pachauri said the policy is being finalised and state cabinet will approve it soon.

In his speeches, Adityanath has stressed that the sector has much potential to create jobs.

“We need to sign Memorandums of Understanding (MoUs) with textile mills in the state so that they can train youths. The mills that are not running need to be re-started. This can be done by the government or through PPP(Public Private Partnership) model,” he said at a state government programme on skill development on July 15.
At the same programme, he had said his government had set a target of providing jobs to 70 lakh youths in next five years.

Pachauri, an MLA from Govindnagar in Kanpur, the erstwhile hub of the textile industry in the state, said the government said private investors should show interest. “The government can only provide assistance. It does not have the resources to revive the mills on its own. We are focusing on promoting more investment in the textile sector from private sector. For that, we will provide incentives to smaller units as well as big units,” said Pachauri.
The draft of textile policy states that UP imports two-third of textile raw material and textile products. The policy aims to promoting all aspects of handloom, textile and sericulture, from the production of raw material to preparation of the final product.

Pachauri said the government is planning to start two silk reeling units in the state so that the farmers could supply their raw materials there instead of selling it to units in other states. He said incentives will also be provided for restarting shut powerlooms.

Other points

n 100 per cent waiver of stamp duty for new textile units
n Extension of existing units in Bundelkhand and eastern UP
n 75 per cent waiver in central UP and western UP (barring Noida, Greater Noida and Yamuna Expressway authorities)
n 100 per cent waiver of stamp duty for new cocoon production units and reeling units of silk.
n Refund 90 per cent of net state GST from unit that will invest more than Rs 5 crore in Bundelkhand or eastern UP, for 10 years from the date of the first sale of its products.
n Refund will be 75 per cent in of net state GST from unit in central UP and west UP (except the Noida, Greater Noida and Yamuna Expressway authorities).
n Provisions for rebate in electricity duty and mandi fees
n Subsidies on loans taken for investment in the textile units, in paying a certain share of Employee’s Provident Fund for those units employing 200 or more untrained workers