Telangana is in the process of formulating a textile and apparel policy that contemplates waiver of personal loans of handloom weavers. Fresh loans are proposed to be given at three per cent interest. Subsidies will be given for capital investment and purchase of equipment by entrepreneurs. Tax incentives and power subsidies are being examined.

The policy targets investments for at least five international and 50 domestic companies and setting up of five new textile parks to generate employment for three lakh people, mostly women. The objective is to see that wages of individual weavers go up by at least 50 per cent.

Land for investors will be allotted from the land bank of the Telangana State Industrial Infrastructure Corporation. They will be invited to invest in the spinning, weaving, processing and garment sectors. Linkage of technology to existing facilities in the industry and skill development will be focused on. Housing for workers and staff is proposed within the textile parks.

There will be a 40 per cent concession on purchase of yarn by the textile industry in addition to the 10 per cent already given. A power subsidy for powerlooms operating with motors of 27 HP capacity is also being examined. The government will procure purchase orders from weavers.