The government of Gujarat has extended its 2012 textile policy by one more year. The policy was set to expire on September 4, 2017, but now it shall remain in force till September 3, 2018, the state’s industries and mines department announced. The five-year textile policy was launched by Prime Minister Narendra Modi when he was chief minister of the state.
“Many players of the textile industry had requested the state government (to extend the policy). Thus it was decided to extend the benefits to the industry,” a government release said.
The objective of the policy is to have an integrated approach to strengthen the value chain – “Farm to Fibre to Fabric to Fashion to Foreign” (5 Fs), which will enhance sustainable growth of farmers and industry.
When announced in 2012, the textile policy ‘Navi Gujarat Vastraniti’ was expected to attract investment of over Rs 20,000 crore, creating new employment opportunities for over 2.5 million people, 50 percent of them being rural women, during the next five years period.
Among the slew of incentives, the policy provides interest subsidy for value-addition chain from ginning to spinning, weaving, processing, garment manufacturing and technology up-gradation. It provides power tariff concession for new cotton spinning and weaving units; gives financial assistance to Skill Development Centres for textile industry and offers financial assistance for technology acquisition for value chain.