New Textile Policy New Textile Policy New Textile Policy

New Textile Policy

1. Integrated and Sustainable Textile Policy 2023-2028. Directorate of Industries, Government of Maharashtra

2. Scheme Highlights T asar and Mulberry silk and Technical Textiles is also in focus. To achieve 80% in house processing of its cotton production. 5F Vision implementation of supply chain i.e., Farm to Fiber to Factory to Fashion to Foreign Government wants to achieve the same through 3R Model- Reduce , Reuse and recycle P o l i cy c o v e r s s c h e m e f o r c oo p e r a t i v e a s w e ll a s p r i v a t e s ec t o r .

3. Textile Industry plays an important role in the national economy owing to its major contribution to GDP, industrial production, employment and exports. The country is the world’s second-largest producer of textiles and garments and the fifth-largest exporter of textiles spanning apparel, home and technical products. The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to industrial production and 12% to exports. The textile industry is one of the largest sources of employment generation in the country with an estimated 4.5 Crore people directly engaged in this sector including women and rural population.

4. Period of the Integrated and Sustainable Textile Policy 2023-2028 This Integrated and Sustainable Textile Policy and all related schemes will come into effect from the date of issue i.e 2 nd June 2023 of Government Resolution and will remain in force till 31st March 2028. In case the new policy does not get formulated by 31st March 2028, this policy will remain in operation for a maximum period of 1 year only. From 2 nd June 2023 Till 31 st March 2028 1 Year m a ximum Extension

5. Vision Integrated and Sustainable Textile Policy of the State is in line with the 5F V ision of the Government of India- Farm Farm to Fiber. Fiber to Factory. Factory to Fashion Fashion to Foreign Sustainable Value Chain will be achieved Through 3R Model Farm Fiber Factory Fashion Foriegn Reduce Reuse Recycle

6. Increase the processing capacity of cotton from 30% to 80% in the next 5 years. Provide support for Skill Development and Capacity Building to ensure availability of skilled manpower to textile industry & increase the employability in the sector. Policy envisages attracting investment of INR 25,000 crore and employment generation up to 5 lakhs in next 5 years. Development of six(6) Technical Textile Parks in the State by encouraging private investment. Establishment of Maharashtra State Textile Development Corporation (MSTDC) for overall responsibility of textile sector & Maharashtra Technical Textile Mission.

7. Definitions: - Micro, Small & Medium Enterprises (MSME) :- MSME will include Projects where the total investment in plant and machinery in the project is up to Rs . 50 crore or as amended by Government of India (Micro, Small and Medium Enterprises Development (MSMED) Act, 2006) from time to time. Large E n t erprise s :- Project having fixed capital investment not greater than INR 100 crore or providing employment to minimum 500 individuals. Mega E n t erprise s :- P r ojec t h a v in g fi x ed c api t a l i n v e s tm e n t g r e a t er th a n INR 100 c r o re or providing employment to minimum 1000 individuals. Ultra-Mega E n t erprise s : - Project having fixed capital investment greater than INR 1000 crore or employment to minimum 2000 individuals will be treated as Ultra Mega project .

8. Fixed Capital Investment (FCI): Includes The basic cost of Plant and Machinery. Includes The detailed project report (DPR) of the new textile unit will include the cost of setting up the solar power plant up to a maximum limit of 4 MW (excluding land and building construction) in the eligible plant and machinery, for calculating the capital subsidy payable. Not includes The cost of land and building construction

9. Technical Textiles: This textile production which is aimed not only at fabric production but also at creating products which could be used in the industrial, defense, research and other advanced sectors due to its specialized technical properties . These products are classified into following categories based on their quality and end use:- Agro tech Geo tech Medi tech Pack tech Defence tech Build tech Home tech Mobile tech Echo tech Sport tech Cloth tech Ind tech Pro tech (Protective textile)

10. Sr No Zone 1 Zone 2 Zone 3 Zone 4 Name of Districts Akola Amravati Buldhana Bhandara C ha n d r a p ur Gadchiroli Gondia Nagpur Washim Wardha Yavatmal Au r an g ab a d Beed Dhule Hingoli Jalgaon Jalna Latur Nan d ed Osmanabad Parbhani Ah m e d na g ar Nashik Nandurbar Kolhapur Mumbai City Mumbai Suburban Palaghar Pune Ratnagiri Raigad Sindh u d u r g Sangli Satara Solapur Thane The State of Maharashtra has been broadly divided into 4 zones based upon the development of textile sector and availability of inputs for the textile industry.

11. List of Sub Sectors : 1. Ginning and Pressing Sector 2. Spinning Sector 3. Powerloom Sector 4. Handloom Sector 5. Processing Sector 6. Knitting, Hosiery and Garmenting Sector 7. Sericulture 8. Traditional Textiles 9. Wool sector 10. Non- Co n v e n t i ona l Y arn/ Fiber and Synthetic Yarn 11. Technical Textiles

12. S E C T O R S E L I G I B L E F O R T H E S C H E M E S SECTOR PRIVATE SECTOR C A P I T A L S U B SI D Y E L E C T R I C I TY SUBSIDY MAHA-TUF SOLAR POL IC Y E TP- ZLD GINNING AND PRESSING YES YES YES YES NO SPINNING YES YES YES YES NO POWERLOOMS YES YES YES YES NO PROCESSING YES YES NO YES YES KNITTING, HOSIERY AND GARMENTING YES YES NO YES NO WOOL YES YES NO YES NO Non-Conventional Yarn/Fiber and Synthetic Y a r n / F i be r YES YES NO YES NO TECHNICAL TEXTILES YES YES NO YES NO

13. S E C T O R S E L I G I B L E F O R T H E S C H E M E S SECTOR C OOP E R A T I VE S EC T OR EQUITY E L E C T R I C I TY SUBSIDY SOLAR POLICY MAHA-TUF GINNING AND PRESSING NO NO NO NO SPINNING YES YES YES YES POWERLOOMS YES YES YES YES PROCESSING NO NO NO NO KNITTING, HOSIERY AND GARMENTING NO NO NO NO WOOL NO NO NO NO Non-Conventional Yarn/Fiber and Synthetic Yarn / F ib e r NO NO NO NO TECHNICAL TEXTILES NO NO NO NO

14. CAPITAL SUBSIDY NEW UNITS - CAPITAL INCENTIVE Zone 1 Zone 2 Zone 3 Zone 4 MSME 45% 40% 35% 30% LARGE ENTERPRISES 40% 35% 30% 25% MEGA ENTERPRISES 55% Or Rs. 250 cr 50% Or Rs. 225 cr 45% Or Rs. 200 cr 40% Or Rs. 175 cr ULTRA MEGA ENTERPRISES : This will be approved through H igh P ower Committee(HPC). Investment period will be of 10 year . ADDITIONAL BENEFITS : Additional 5% for SC/ST/Minority/ Ex-servicemen units Additonal 5% for women, provided more than 50% employees working are women

15. Co-Operative Spinning Mills & Powerlooms :- SHARE CAPITAL – For the new co-operative units of Co-op Spinning & Powerloom under this policy, ratio of self-equity, government equity and loan from financial institutions will be as per Zones .

16. ELECTRICITY SUBSIDY Existing electricity subsidy scheme will be available for next 2 years. After that no electricity subsidy will be available . Electricity subsidy given from 2 Rs /Unit to Max.of 3.77 Rs /Unit as per Annexture A New units have been granted electricity subsidy, but it is not mentioned for how much period the same will be available. Electricity subsidy is currently available based on the sector classification and the electricity connected load. However with the current representation received by Government, we may see some changes in final notification .

17. MAHARASHTRA TECHNOLOGY UPGRADATION FUND SCHEME (MAHA-TUFS): RATE OF CAPITAL INVESTMENT SUBSIDY (CIS) ZONE 1 40% Of Basic Cost of Eligible Machinery INR 25 Crore ZONE 2 35% Of Basic Cost of Eligible Machinery INR 20 Crore ZONE 3 30% Of Basic Cost of Eligible Machinery INR 15 Crore ZONE 4 25% Of Basic Cost of Eligible Machinery INR 10 Crore W hic h e v e r is Lower

18. In both the above schemes, the capital subsidy will be paid after the project comes into production. This will be paid in two installments : 1st instalment : 60% of eligible amount after 12 months. 2nd instalment : 40% of eligible amount after 24 months. The period of disbursement of Capital Subsidy and the Maha -TUFS ( Maha Technology Upgradation Fund Scheme) is as follows - In earlier Textile policy, the Capital Subsidy was paid in three instalments of 30%, 30% and 40% of eligible amount after 36 months from start of production .

19. SOLAR POLICY With the intent of achieving SUSTAINABILITY solar policy has been introduced in the scheme. New units coming up in the state can include Solar installation cost in their DPR and the same will be s u b s i d i z e d a s p e r t h e z o n a l % o f s u b s i d y e l i g i b l e f o r t h e s e c t o r . For existing units, amount equal to their present electricity subsidy eligible for 12 months will be provided in 2 installments for installing Solar facility. It will be restricted as cost of power plant upto max 4MW or Rs.4.8 crores whichever is less. There will be cap of Rs . 40 lakhs per unit per month on the disbursement of monthly elecricity subsidy N o c a p o f 1 M W o n n e t m e t e r i n g f o r t h e t e x ti l e un i t s Energy department will levy only transmission charges on projects using non-conventional sources Use of both conventional and non-conventional energy resources will be used to decide the load factor

20. Promoting Green and Sustainable Production The State Government is very keen to adopt environmentally friendly and green technologies for sustainable production. Through this policy, the State Government will provide following incentives- S u pport for Ef f lu e nt T r eatm e nt Plants (ETP) and Common Effluent Treatment Plant Support for Zero Liquid Discharge (ZLD) Support for Setting up common Steam Generation Plant Setting up of 12 Recycling Projects Support for Solar Plants will include the cost of installation of solar power plant ) up to maximum of 4MW capacity

21. Textile Parks The State Government has been providing assistance for developing common infrastructure facilities for promotion of textile parks, in addition to the assistance being provided by the Central Government. At present, there are 13 approved textile parks in the State. Incentive: Government of India provides financial assistance @INR 40 Crore or 40% of the FCI whichever is less. In proportion to this, the State Government provides financial assistance @INR 9 Crore or 9% of the FCI whichever is less.

22. Technical Textile Parks Given the large base of textiles in the State, it is proposed to set up 6 Technical TextileParks in the 4 Zones of the State. Zone 1 and Zone 4 will have 2 Parks each and the other two Zones will have 1 park each. 1. Eligibility - The park must fulfill all the below mentioned criteria to qualify for incentives- To qualify as a park the criteria will be to have minimum 10 technical textile units. None of the uni t s should have m ore th a n 25% of the to t al requir e d park ar e a as per Det a i l ed Proje c t Repor t . A minimum fixed capital investment (FCI) of INR 400 crore is mandatory to qualify asa technical textile park. Cost of land and building will not be included in FCI. The Technical Textile Park must have an established skill development centre with aminimum capacity of 30 individuals and ensure continuous training

23. Skill Development and Capacity Building The policy aims to create skilled and balanced workforce, especially women to enhance their employability. In order to develop the skills of handloom weavers, training program under Skill Development Program will be conducted through Weaver Seva Kendra or Technical Training Institute in places where there are handloom clusters in the state. Training Centres: The State Government shall provide assistance to upgrade existing skill centres as well as set up new Training Centers which provide skill training for various courses in textile such as garmenting, apparel production etc. The assistance will be of 50% of the total cost (subject to INR 20 lakh per center) through Skills, Employment, Entrepreneurship and Innovation Department for establishment of exclusive textile training centre towards the purchase of equipment and machinery (including installation cost, electrification and necessary furniture)

24. Maharashtra State Textiles Development Corporation (MSTDC) Maharashtra State Textiles Development Corporation (MSTDC) will be established as a statutory corporation on the lines of MIDC. All the existing corporations will be merged into MSTDC. All the assets of the present corporations will be transferred to MSTDC and all liabilities will be restructured as per Government directives. The Department will establish this Corporation within a period of one year from the release of the policy. Under this Policy, Government Resolutions, and guidelines for implementation of the policy from the point of view of General Administrative Measures will be issued separately. This Government Resolution is being issued as per Finance Department UOR Number 389/2023/Expenditure-2 dated 01 st June 2023 and the decision taken by the State Cabinet on 30 th May 2023.

25. Provisions Under PSI-2019 for Textile Industry:- Units manufacturing all types of textiles including cotton ginning and pressing, sizing, spinning, weaving, bleaching, dying, mercerizing etc. covered under the Textile Policy – 2018 – 23 of Maharashtra State shall be eligible only for incentives other than those offered by the other State Government Agencies. Promotion of Thrust Sectors -Textile Machinery Manufacturing Apart from Industries Departments Package Scheme of Incentives Micro, Small, Medium, Large, Mega and Ultra-Mega Units are given incentives/ concessions by other administrative departments of State Government (e.g. Textiles, Food processing, Tourism, IT) The financial refunds / incentives to an industrial units from all sources put together shall not exceed admissible Fixed Capital Investment as per respective Taluka category.

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