MUMBAI, FEB. 22
Maharashtra government is planning to delink the state’s textile policy from the Centre’s Technology Upgradation Fund (TUF), in order to boost investment and generate more employment in the sector. As per the state’s textile policy, unveiled last March, 12 per cent interest subsidy to be provided for setting up textile units includes 5 per cent interest subsidy under TUF.
Under the TUF scheme, textile units have to submit their investment proposals to banks, to be cleared as per the fund availability. Budgetary provisions are made under different heads for different sectors such as spinning, weaving, ginning, processing , sewing, garments, etc. “If the provision made gets exhausted, there is a long waiting list of proposals. The investor would not get UID number as well. Hence, the state government is contemplating delinking of textile policy from TUF so that textile units can proceed with the 7 per cent interest subsidy for investment in Maharashtra,” a state official told PTI.
Textile Minister Mohammed Arif Naseem Khan and Chief Minister Prithviraj Chavan discussed the issue last week. When the policy was announced in March 2012, it had been decided that suitable changes would be made a year later. “Accordingly, a cabinet note is being prepared to delink TUF from the state policy. With this, investors can avail of benefit of the 7 per cent interest subsidy. They can avail of the remaining 5 per cent under TUF after their proposal is cleared,” the official added. To boost private investment in the textile sector, the Maharashtra government has decided to provide 10 per cent capital subsidy and up to 12.5 per cent interest subsidy for projects linked to TUF, sources said.
Capital subsidy would be given to set up units in cottongrowing Vidarbha, Marathwada and north Maharashtra, while interest subsidy is to be provided for textile units to be set up across the state. Maharashtra expects to attract investment of Rs 40,000 crore in the next four years. It will generate 1.5 million jobs. So far 316 projects with aggregate investment of Rs 2,700 crore have been set up in the state, of which 25 per cent are in Vidarbha. They have provided employment to 21,000 people. Fifty-four projects with investment to the tune of Rs 800 crore are in the pipeline, awaiting clearance, sources added. (Source: Tecoya Trend)