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