Karnataka’s new textile and garment policy has identified five thrust sectors: spinning, weaving, integrated units, processing, and technical textiles.
The policy will provide a stimulus to the textile industry to project Karnataka as the garment capital of India and achieve higher and sustainable growth in the textile value chain. A centre of excellence for textile and technical textiles will be established during the policy period. The budget outlay will be utilised to provide capital subsidy, interest subsidy, power subsidy, wage subsidy, skill development support, stamp duty reimbursement, ESI and EPF subsidy, and infrastructure development. The policy will also give importance to units investing in rapier looms, air jet looms, and electronic jacquard.
To boost conversion of cotton production into yarn preparation, special focus would be given to units investing in spinning mill manufacturing higher count and compact yarn. North Karnataka produces nearly 40 lakh bales of cotton a year. However, spinning mills consume only ten per cent of the cotton grown and the rest is sold to spinning mills of neighboring states. The new policy envisages a capital subsidy to modernise spinning mills with the latest spindle technologies to achieve lower energy production; encourage units to use non-conventional sources of power by providing concessional rates; and skill development support to develop need-based skills for spinning.
