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Maharashtra to extend 12 per cent interest subsidy to textile units

Move is an effort by government to encourage investment in the textile sector

Press Trust Of India  |  Mumbai 

The Maharashtra government has decided to extend the benefit of the 12 per cent interest subsidy to existing textile units which would like to expand all over the state, officials said.

A government resolution (GR) to this effect will be issued in the coming days, in an effort to encourage investment in the textile sector, they said.

The textile policy unveiled in March last year, did not have any benefits for existing textile units.

Only new units set up in Vidarbha, Marathwada and North Maharashtra were to be given a 10 per cent capital subsidy under the Central government-sponsored technology upgradation fund (TUF) scheme.

So far, 326 new projects have been set up in the state which employ 21,000 people.

Meanwhile, after the 'Advantage Vidarbha' investors' meet in Nagpur, seven projects worth Rs 18,018 crore employing 1000 people have come up in Vidarbha.

The government's main objective has been to generate maximum investment in the textile sector, create employment opportunities and enable cotton growers get a good price for their crop, officials said. Out of 90 lakh cotton bales produced every year in the state, only 30 per cent is processed in the state, while the remaining 70 per cent is processed in neighbouring states or exported.

"Our aim is to ensure that 100 per cent of the cotton produced, is processed in the state itself," officials said.

First Published: Tue, May 07 2013. 20:54 IST