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Maharashtra aims Rs 10k textile investment from Guj

High level delegation from neighbouring state in City to Woos Gujarat Inc.

Vinay Umarji  |  Mumbai/ Ahmedabad 

After Gujarat recently unveiled its new textile policy, the state has a competition from its neighbour. Through a series of presentations, Maharashtra is wooing the industry with its new textile policy 2011-2017.

What's more, out of the targeted Rs 40,000 crore investments in textiles between 2011 and 2017, Maharashtra is aiming at Rs 10,000 crore to come from Gujarat.

Inviting the industry in Gujarat to invest in the state, a high level delegation from the Government of Maharashtra headed by Mohammed Arif (Naseem) Khan, minister of textiles on Monday visited Ahmedabad.

Rolling out the red carpet to the textile sector of Gujarat to invest in Maharashtra, the delegation - comprising of Rajagopal Devara, secretary - cooperation and textiles, GoM; N NawinSona, director - textiles, GoM and Dilip Gawade, deputy CEO, MIDC, GoM, among others laid out the salient features and specific benefits of the New Textile Policy of Maharashtra 2011–2017.

"In all, we are aiming at Rs 10,000 crore worth investments in textiles in Maharashtra from Gujarat. The businessmen from Gujarat would also be invited to invest in the proposed textile parks coming up in Maharashtra. The Maharashtra government will provide 9 per cent capital subsidy or up to Rs 9 crore, whichever is less for the infrastructure development in the proposed textile parks," Khan said.

This is in addition to the Rs 40 crore subsidy from the central government. A total investment of Rs 10,000 crore is envisaged in the development of the 14 textile parks wherein one textile park is expected to house 50 units.

Talking about the policy, Khan said, "The Government of Maharashtra would not only be providing capital and interest subsidies to the private sector, but also has adopted a zero window policy among other initiatives. Our objective is to invite the businessmen of Gujarat to take benefit of the attractive provisions of the new textile policy and invest in Maharashtra in a big way."

Gujarat produces 12 million bales of cotton against nine  million in Maharashtra and accounts for 12% share of the country's total textile exports. About 250 large fabric process houses are located in Ahmedabad and 350 in Surat, with the latter being the largest centre of art silk fabric producing over 40% of production in the country.

Interest subsidy on long term loan linked to centrally sponsored Technology Upgradation Fund Scheme will be started for new textile project as well as modernisation/expansion/rehabilitation project of existing textile units.

Around 10 per cent capital subsidy scheme will be started for new textile projects in Vidarbha, Marathwada and North Maharashtra.

The new policy lays emphasis on setting up processing units in the cotton producing regions, expansion of the textile industry and growth of employment.

Over 1.1 million new jobs are expected to accrue to Maharashtra in next five years in the sector on account of the new Textile Policy of Maharashtra 2011-2017.

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First Published: Tue, September 11 2012. 00:38 IST