New Gujarat textile policy is out

The state government on Wednesday announced its new Textile Industry Promotion Policy, 2012, which offers a slew of incentives for cotton growers as well as textile mills in the state.

"The objective of the new policy is to safeguard the interests of cotton farmers, better price realisation in national and international markets and value addition in the entire chain. It is also to protect the cotton-growers of Gujarat from the present Congress-ruled UPA government's anti-farmer and anti-export policies, Minister of State (MOS) for Industry and Mines and state government Spokesperson Saurabh Patel said while announcing the policy.

The new policy offers a slew of incentives that include exemption in VAT (value-added tax) to the extent of 80-100% for a period of 10 years.

The other incentives include conditional exemption in electricity tariff and stamp duty on plant land and machinery, assistance in infrastructure development and research and skill development.

In case of apparel parks and textile plants, the state government will offer 50% of the cost of infrastructure or a maximum Rs 10 crore as assistance.

For centres of excellence, the government will give Rs 20 crore to Rs 30 crore in assistance. The police also offers interest subsidy in the range of 5%-7% to promoters of the textile industry.

"The new textile policy is expected to attract investments of over Rs 20,000 crore and create new employment opportunities for over 25 lakh people, 50 per cent of them being rural women, during the next five years period. This will also increase the state's revenue and growth rate along with growth of the textile industry," Patel said.

"The Centre banned export of raw cotton at a time when international prices were the highest. It cost Gujarat farmers dearly and they suffered a loss of Rs 14,000 crore during the outgoing season," the minister said.

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