Implement new textile policy before MCC kicks in, stakeholders to govt

March 18, 2024

Category: General

Country: India

Region: Asia

Due to various attractive schemes in the textile policy of Maharashtra, several textile units have relocated to Navapur in that state for power subsidy and other benefits, highlighted SGCCI former president and textile committee representative Ashish Gujarati.

By Express News Service
Surat | Updated: March 13, 2024 08:40 IST

With an eye on growth and sustainability, the new textile policy of Gujarat should be brought into force before the model code of conduct kicks in ahead of the upcoming Lok Sabha elections, industry leaders urged the state government Monday.

S J Haider, Additional Chief Secretary of the Industries and Mines Department, and J P Gupta, Additional Chief Secretary of the Finance Department, held the meeting with a delegation of 20 representatives at Udhyog Bhavan in Gandhinagar on Monday. Representatives from various textile bodies across the state and the Southern Gujarat Chamber of Commerce and Industry, among others, attended the meeting. The state’s old textile policy, which was brought in 2019, expired on December 31, 2023, said people in the know. There has been a growing demand to bring in a new policy since then.

Federation of Indian Art Silk Weaving Industry (FIASWI) chairman Bharat Gandhi said, “We have demanded a capital subsidy of 20 per cent, to be disbursed in five equal installments over five years. Investments in renewable energy for captive consumption should be included in the eligible fixed capital investment. Investments in the modernisation and expansion of weaving infrastructure will help the industry to adopt sustainability and ethical practices aligning with global consumer trends. It will also help to compete with the neighbouring state weavers who are getting substantial benefits from the respective state government.”

He added, “We have also asked for interest subsidy of 6 per cent, with a clause stipulating a minimum of 2 per cent to be paid by unit. This will help to elevate the financial burden on the industry enterprises. We have also demanded power tariff reimbursement which should be Rs 3 per unit for low tension connection and Rs. 2 per unit for high tension connection. This will enhance the sector’s long-term viability and resilience and promote environmental responsibility. We have requested for the removal of caps on the subsidy amounts to ensure equitable benefits across all sectors.”

He added, “We have demanded that after the new textile policy of Gujarat is announced, it should be implemented from January 2024. We have come to know that the government of Gujarat has made a draft of textile policy and after this meeting with the stakeholders, they will come up with a final policy.”