The government of Maharashtra plans to introduce a new textile policy in next two months. The aim is to attract entrepreneurs in the entire value chain, besides seeing that existing unit do not migrate to other major cotton-growing states.
Over and above the Centre's textile package, the technology upgradation fund scheme and other incentives, all major growing states have introduced their own textile policies to attract investment. The governments of Tamil Nadu, Karnataka, Andhra Pradesh and Telangana have announced a number of incentives for textile units. And, effective October 1, 2017, the government of Gujarat renewed its state textile policy, which was originally introduced for five years in 2012.
The earlier policy of Gujarat had seen a large migration of units into the state from across the country. Maharashtra saw the migration of all types of business units in the sector, given the similar business environment in the two states.
"We have started taking inputs from co-operative and other sectors involved in the garment value chain. We will introduce our own textile policy in two months to stop migration of units to other states. These states have attracted investment in the entire textile chain with incentive schemes, electricity and labour being the major ones. Our textile policy would majorly focus on power availability at cheap rates," said a senior Maharashtra government official.
Solapur is already being developed as a manufacturing hub.
Amitkumar Jain, the joint secretary of the Solapur Readymade Kapad Utpadak Sangh, said, "We have requested the government to provide us with a monthly skill development fund of Rs 4,000 per man and Rs 3,000 per woman as offered by the government of Gujarat. We are bringing global buyers and sellers to Solapur through our annual exhibition, scheduled this year between January 27 and 29. Solapur is set to become a major sourcing hub of school and corporate uniforms in India."
The government of Gujarat is offering electricity at Re 1 a unit, besides interest subsidy at five per cent annually, with a ceiling of Rs 70.5 million (Rs 7.5 crore). Through this, it estimates it would attract new investment of Rs 200 billion (Rs 20,000 crore) by 2022.