Gujarat announces new Textile Policy 2012

[Fibre2fashion]

The state of Gujarat in India today announced a new Textile Policy 2012 - ‘Navi Gujarat Vastraniti’ which will help cotton farmers to get better price realizations and also infuse new life in to the textile industry of the state.

The new Textile Policy is expected to attract investment of over Rs.20,000 crore, creating new employment opportunities for over 2.5 million people, 50 percent of them being rural women, during the next five years period.

The objective of the policy is to have an integrated approach to strengthen the value chain - “Farm to Fibre to Fabric to Fashion to Foreign” (5 Fs), which will enhance sustainable growth of farmers and industry.

 

The policy envisages starting cotton spinning and weaving parks around cotton growing areas and will provide support for energy and water conservation and environmental compliance.

 

Among the slew of incentives, the policy will provide interest subsidy for value-addition chain from ginning to spinning, weaving, processing, garment manufacturing and technology up-gradation.

 

It will refund VAT on expansion of existing and new units in spinning and readymade garments; provide power tariff concession for new cotton spinning and weaving units; give financial assistance to Skill Development Centre’s for textile industry and offer financial assistance for technology acquisition for value chain.

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