Maharashtra’s cabinet has approved the new textile policy for 2018-2023 aimed at attracting an investment of Rs 36,000 crore to the state and generating 10 lakh employment. Some of the major parts of the policy include cutting back on power tariffs and increasing capital subsidy to 45 per cent for spinning mills.
Officials say the policy uses the ‘Make in Maharashtra’ concept to strengthen the cotton industry and silk business. It is targeted at reducing regional imbalance in the state as higher concessions would be given for setting up units in Vidarbha, Marathwada and North Maharashtra. More emphasis would be placed on cotton producing regions which recorded a large number of farmer suicides.
Several schemes of Rs 4649 crore will be implemented under the new policy. The policy intends to create infrastructure for textile cluster and garment parks. The policy has also suggested a proposal for setting up a textile university in the Vidarbha region. Subhash Deshmukh, State Textile Minister says they have made provisions to reduce power tariffs for spinning mills. Besides, spinning mills were given financial assistance in several instalments. Now, they would get financial assistance in two instalments only. A key reason for spinning mills reporting losses is the higher power tariffs, when compared to other states. The power tariffs in Gujarat, Karnataka and a few other states are between Rs 4 and Rs 6 per unit, while it is Rs 9 per unit in Maharashtra. Correspondingly, spinning mills will be urged to set up solar power plants on their land and the power generated from it will be used by spinning mills. Hence, the power tariffs are likely to be reduced to Rs 3.5 per unit. Further, capital subsidy has been substantially increased for processing units, spinning mills and modernisation of powerlooms. It proposes to give 45 per cent capital subsidy for processing units and 25 per cent for spinning mills and modernisation of powerlooms.