Maharashtra is rekindling its affair with the textile sector. In the last two years the State has managed to get investments to the tune of Rs 7,099 crore and has created employment potential for 45,953 persons.
The primary trigger for the renewed interest has been Maharashtra’s 2011 textile policy, which offers capital and interest subsidy on the investment made by textile companies.
According to internal documents reviewed by BusinessLine, the policy has managed to get 731 projects, out of which 10 big projects have brought in Rs 2,426 crore investments.
Another 477 projects with an investment ranging Rs 10 and Rs 50 crore have led Rs 2,523 crore, while 22 project with investment between Rs 50 and Rs 100 crore have brought in Rs 2,000 crore investment.
The State Government had announced a new textile policy in 2011 but only by early 2012, the process of formal notification was complete and it started getting attention from the companies.
A senior Maharashtra Government official from the Textile Department said that rather than the big projects, the Department has focussed on small and medium projects, which has helped gained the huge investment in state. The State Government has provided subsidy on both capital and interest component, which has been a major attraction for textile companies, the official said.
In the sugar sector for every Rs 1 crore spent by the State Government, assets worth Rs 2 crore have been created. But in textiles Rs 1 crore investments by the State has yielded Rs 10 crore investments, the official said.
Out 731 projects, 411 have been set up for weaving and power loom, 58 for cotton ginning and processing and 64 for processing fibres and yarns.
The official added that areas such backward districts such Parbhani, Hingoli and Washim, would be soon declared as textile zones, which will funnel further growth in the State.