Maharashtra has extended a capital subsidy to textile units that are self-financed. Earlier the subsidy was extended only to textile units that had taken bank loans. In addition, self-financed textile units in Vidarbha, Marathwada and North Maharashtra regions, which produce almost all of the state’s cotton, will also be eligible for 25 to 35 per cent capital grants from the state.

Maharashtra has come out with this policy to incentivise textile industrialists who are ready to put in their own money in their units. So far there were no incentives to take credit. The policy for self-finance makes sure that the promoter’s equity is raised. The initiative will give Maharashtra a competitive edge over other textile-heavy states like Tamil Nadu.

Meanwhile, 10 integrated textile parks are coming up in Maharashtra. These parks will be developed in Vidarbha, Marathwada and north Maharashtra, where cotton is produced. The targeted investment is Rs 40,000 crores in these parks which would generate more than 11 lakh jobs.

The state has reduced the premium on MIDC land to encourage investors to invest in these parks. One of these parks has come up at Nandgaon Peth in Amravati district in Vidarbha where Raymond Industries has signed an agreement for an investment of Rs 1,400 crores.