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Wage incentives missing in Maharashtra’s textile policy

Maharashtra's textile policy offers a primary capital subsidy of 25 to 40 per cent across the value chain. There are area-wise and sector-specific incentives, such as 10 per cent of additional subsidy and lower electricity rates for setting up units across under-developed regions.

The state produces 8.2 million bales of cotton, of which only a fourth is consumed within the state. It wants the remaining three-fourth of unprocessed cotton to be processed within the state, for which it has offered an electricity rate lower by Rs 3 a unit. Tamil Nadu produces only 0.5 million bales of cotton but processes around 10.5 million bales by procuring the fiber from other states because of cheaper electricity.

Maharashtra has also offered incentives for pollution-free and eco-friendly dyeing and processing plants. There are incentives to make non-conventional yarn like bamboo, banana, ghaypat, ambadi, coir and maize. By these measures Maharashtra is confident of attracting massive investment in the textile sector.

However, for garment units, cost of production and viability remain a major concern. With wage incentives, the cost of production declines. There is no mention of this in the policy. Hence, garmenting units would find Gujarat Andhra, Telangana or Jharkhand preferred destinations. They offer wage incentives for new textile units.