As Gujarat announces new textile policy today, here’s a look at why Maharashtra’s Navapur is being preferred by Surat factory owners

October 15, 2024

Category: General

Country: India

Region: South Asia

Sources said that presently, as many as 130 textile factories owned by Surat textile players are situated on Navapur MIDC (Maharashtra Industrial Development Corporation) premises.

By Kamal Saiyed, Newsguard
Surat | October 15, 2024 03:28 IST
Reading time: 4 minutes

With the Gujarat government set to announce the new textile policy on Tuesday, industry players in the city are hoping that their demand for capital and power subsidy will be met to prevent the expansion of the industry from Surat to neighboring Maharashtra, which has cheaper power rates.

Sources said that presently, as many as 130 textile factories owned by Surat textile players are situated on Navapur MIDC (Maharashtra Industrial Development Corporation) premises.

Besides, over 25 textile businessmen from Surat are likely to open their factories in Navapur, around 100 kilometers from the city, after Diwali, sources added.

Meanwhile, the Navapur MIDC is fully booked now with the authorities there advising the Surat businessmen to consider the Bhaler MIDC coming up at Nandurbar, 60 kilometers far from Navapur.

“Chief Minister Shri Bhupendra Patel will launch the New Gujarat Textile Policy-2024 from Gandhinagar on Tuesday as part of the culmination of the celebration of Vikas Saptah,” according to a statement issued by the government on Monday. “This new textile policy will represent a significant step in the context of the current geopolitical landscape and boost industrial growth,” it further added.

Notably, the old textile policy of the state expired on December 31, 2023, and industry players have, since then, been demanding that the state government come up with a new textile policy. Few days ago, the state industry department secretaries held a meeting with the textile industry stakeholders and sought their suggestions. During the meeting, industry players had requested the government officials to include subsidies in the new textile policy.

Vijay Kumar Mevawala, president, Southern Gujarat Chamber of Commerce and Industry (SGCI), said, “We have made representations to the state government earlier to give capital and power subsidies for the industries. We are hopeful that our request will be agreed to in the new textile policy. We hope the new textile policy will be industry friendly and will lead to an increase in exports.”

On the industry expansion to Maharashtra, C K Mania, a textile unit owner in Surat, said, “I am running a factory at Sachin GIDC with 20 rapier jacquard machines and 100 air jet machines. We have purchased a big plot in Navapur MIDC and completed the construction of the factory. After Diwali, we will start our new factory with 50 rapier jacquard machines. We have made an investment of Rs 25 crore in Navapur and another Rs 25 crore will come after six months as we will expand further. In Surat, the power rate per unit is Rs 8.50 while in Maharashtra, power subsidy rate is Rs 3 to Rs 5.30 per unit.”

He further said, “There are a few others who have expanded their textile business from Surat to Navapur with investment of over Rs 25 crore. The reason behind preferring Navapur MIDC is that everything is cheap over there – the plot rates, construction costs, power subsidy and other taxes. In our letter written to the state government a few months ago, we stated that the state government should frame a new textile policy, keeping in mind the policies of Maharashtra.”

Navapur MIDC president Ishwar Patil said, “There are presently over 130 factories owned by people from Surat at our MIDC. The remaining industrial plots have also been booked by textile industry people from the Gujarat city. Every day, we get an inquiry for plots. We have firmly told them that there is no space left.”

He further said, “We advise them to go ahead with the new Bhaler MIDC coming up at Nandurbar. The reason behind Gujarat people setting up their industries here (in Maharashtra) is cheaper plot, power subsidy at Rs 3 per unit for connection up to 27 HP (horsepower) and Rs 5.30 per unit for up to 200 HP. Even the state government gives an extra subsidy of Rs 1 on 200 HP connections.”