Cabinet Clears New Textile Policy
The Union Cabinet today cleared the new textile policy which dereserved garments from the list of items reserved for the small scale industry and also set a target of exports worth $50 billion by 2010 from the present level of $11 billion.
Of the total textiles exports, the government is aiming to increase share of garment exports to $ 25 billion and increase cotton production by 50 per cent besides establishing quality via a technology mission on cotton.
Textiles secretary Anil Kumar said that the government is also going to harmonise the duty structure and growth oriented industry will be given thrust in the new structure.
As per the new textiles policy, the government would launch a technology mission on jute around February, textiles minister Kashiram Rana told Business Standard.
The policy also provides for setting up a venture capital fund for tapping knowledge-based entrepreneurs and assist the private sector in setting up specialised financial arrangements for funding.
Rana said that the details of the proposed venture capital fund will be decided in about two months after meeting with the textiles ministry, financial institutions and the finance ministry.
The policy would also encourage private sector to set up integrated textile complexes and textile processing units in different parts of the country.
These apparel complexes would work on the lines of the Special Economic Zones started by the commerce and industry ministry. The textiles ministry is planning to offer sops similar to those being offered to the SEZs, Rana said.
The new textiles policy has also set a target of increasing cotton productivity by at least 50 per cent besides upgrading its quality to international standards through effective implementation of the cotton technology mission.
Rana said that, in case of knitwear, it has been decided to raise the investment limit from Rs 1 crore to Rs 5 crore and a notification is to be issued soon.
Consequent to the decision to dereserve garments, foreign units can now invest up to 100 per cent foreign investment through the Foreign Investment Promotion Board route.