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Focusing on “Farm-to-foreign” strategy, the Gujarat Government on Wednesday announced a new textile policy to promote the industry, besides aiming cotton growers to get the best prices for their produce in India and overseas.
The Gujarat Textile Policy (GTP) 2012, Minister of State for Industries, Saurabh Patel told presspersons, aims at attracting investments to the tune of Rs 20,000 crore and creating 25 lakh new job opportunities, 50% of them for rural women, over the next five years.
The policy, keeping in view of cotton production increasing from 23 lakh bales to 1.23 crore bales over the last 10 years, and its high demand in China and Europe, emphasises upon an integrated approach to value chain of “farm-to-fibre-to-fabric-to-fashion-to-foreign” and aims at sustainable growth of both farmers and industry. It covers industry verticals like spinning, ginning, weaving, knitting, carpeting, dyeing and processing, garments and technical textiles.
He said under the new policy, the State Government would provide interest subsidy of 5-7% without ceiling for five years on new plants, power tariff concession of rupee one per unit for five years, refund of VAT on purchase of raw materials and on expansion of existing and new units.
Financial assistance will be given to skill development centres for textile industry, technological acquisition for value-chain, support for energy and water conservation and environmental compliance, and sales tax exemption and partial financial assistance to developers to encourage setting up of spinning and weaving parks around cotton growing areas.
The policy aims for ensuring a better price realisation for Gujarat’s cotton growers in national and international markets, and value addition in the entire chain. “The Centre bans export on raw cotton when international prices are the highest. It cost the Gujarat farmers dearly with a loss of Rs.14,000-crore during the outgoing season,” the Minister said, adding the new policy aims at enabling the farmers to withstand price fluctuations in national and global markets.
Under the new policy, the State Government would provide 150 acres of land, stamp duty exemption to developers and units, and assistance up to 50 per cent with a maximum ceiling of Rs.30-crore for common infrastructure for cotton spinning park.
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