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Gujarat’s new textile policy to draw 20,000 cr investment

Gujarat’s new textile policy to draw 20,000 cr investment

Ahmedabad: The Gujarat government on Wednesday unveiled a textile policy that focuses on the “farm to fibre to fabric to foreign" value chain and is aimed at attracting investment of more 20,000 crore in the next five years.

The new policy will create employment opportunities for 2.5 million people, 50% of them being rural women, in the next five years, minister of state for industries Saurabh Patel said at a press conference in Gandhinagar on Wednesday.

The policy will also benefit cotton growers in the state. The state’s raw cotton production has gone up from 2.3 million bales to 12.3 million bales over the last 10 years. Gujarat produces close to 30% of country’s cotton and 90% of it is sold in other states.

The policy is aimed at helping cotton growers get better prices in national and international markets, Patel said. The Centre’s ban on raw cotton export has come at a time when international prices are at their peak, he said. As a result, Gujarat farmers are facing a loss of 14,000 crore, he said.

To encourage the emergence of cotton spinning and weaving parks around cotton-growing areas, the state will provide at least 150 acres of land, stamp duty exemption to developers and units and assistance of up to 50%, with a ceiling of 30 crore for common infrastructure.

Among other incentives for cotton spinning and ginning activities, the government will give an interest subsidy of 5% without a ceiling for a period of five years on new plant and machinery and power tariff concessions for new projects.

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