Keen on making Haryana a global hub of textile manufacturing and a preferred investment destination, the state government has crafted a new textile policy to incentivize setting up of new units and ensure growth and modernization of the existing textile industry in the state.
The policy is packed with fiscal incentives and contains provisions for infrastructure augmentation, setting up of textile parks and facilities for skill training. It aims at generating 50,000 new jobs by attracting investment in the textile sector to the tune of Rs 5,000 crore.
An official spokesman said the draft policy had been put in public domain and suggestions invited from stakeholders up to February 28, 2017, which would be factored in while giving it a final shape.
The policy has been formulated with an eye on the cotton belt of Haryana. The state is one of the leading cotton producers in the country with Sirsa, Fatehabad, Bhiwani, Hisar and Jind being the main cotton producing districts. This sector provides employment to about one million people and readymade garments worth $ 2 billion are exported from the state annually.
The policy proposes capital subsidy of 10% for the eligible new projects of all textile enterprises across the state. "The draft policy aims at positioning Haryana as a preferred destination for global textile majors. It aims to boost textile exports by compound annual growth rate (CAGR) of 20% during 2017," the spokesman said.
Under the policy, the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) will offer industrial plots for a lease of 33 years with 5% increase in annual lease rent. Besides, panchayat land will also be made available on lease for industrial development. Textile enterprises acquiring technology will be provided financial assistance of up to 50% of the cost for adopting technology from recognized national institutes, subject to maximum of up to Rs 25 lakh. Also electricity duty exemption is proposed for new enterprises.
Under the draft policy, the state government will facilitate setting up of textile parks exclusively for garmenting units with provision of labour housing and built-up sheds (to be provided on lease basis) to facilitate expansion of the garmenting industry in the state.
Source : http://www.cottonyarnmarket.net/