New Textile Policy 2024 to be a game changer for Surat

Surat : The Textile Policy 2024 promises to be a game changer for the country’s largest man-made fiber (MMF) industry. The reason for this is that, for the first time, the Gujarat government has boosted the capital investment subsidy from 10% to 35% on new textile machines, while the interest subsidy has been increased to 8% for new textile companies establishing themselves in Gujarat. 

Textile businesses (garmenting and technical textile) developed in talukas classified under Category-3 will receive a maximum capital subsidy of Rs 50 crore. Textile enterprises developed in Category-3 talukas  in the fields of weaving, knitting, and processing will be eligible for subsidies of up to Rs 40 crore. Weaving, knitting, processing, or spinning units created in Category 1 talukas will also be eligible for a maximum capital subsidy of Rs 50 crore. In the garmenting and technical textile sectors, the amount will rise to Rs 100 crore.

Apart from that, PM Mitra Park has been granted the maximum benefits, similar to category one, whereas textile units established in PM Mitra Park would receive the maximum benefit. Spinning machines that produce yarn from fiber have also been included for the first time in Gujarat’s new Textile Policy- R0R4, following the SGCCI continous submission to the Gujarat government. 

Many textile units in Surat were relocating to Navapur, Maharashtra, due to a lack of textile policy. The shifting of textile units in Surat would be curtailed following the announcement of the new textile policy. This program includes a number of incentive schemes for the garment industry, including capital, electricity, and interest subsidies, as well as payroll assessment, which is a very welcome initiative. As a result, the garment sector will expand dramatically throughout South Gujarat, including Surat. While the SGCCI has long advocated for particular incentives in the garment sector, the new textile policy has maximized benefits for the garment sector, benefiting the majority of the textile business in South Gujarat.

The Blunt Times interviewed several of the textile industry’s leading figures. 

Kamalvijay Tulsian, President of the Pandesara Industries Association (PIA): Gujarat’s new textile strategy will help the MMF industry. Surat Textile Industrialists received a desired Diwali gift thanks to the collaborative efforts of Chief Minister Bhupendrabhai Patel, State BJP President CR Patil, Industries Minister Balwantsinh Rajput, and Minister of State for Industries Harshabhai Sanghvi. The Gujarat government provides a capital investment subsidy ranging from 10% to 35% on new textile machinery, while the interest subsidy for new textile businesses has been extended to 7-8%.Aside from that, a Rs.1 per unit subsidy is acceptable in the power rate system. Due to this decision, industrial units from Surat that were relocating to Navapur in Maharashtra would remain in Surat. 

Mayur Golwala, secretary of the Sachin Industrial Society: For the first time, the Gujarat government has included the weaving industry in its new textile strategy. The Gujarat government has declared that it will grant capital investment subsidies in various categories to individuals who invest in Gujarat’s textile industry. In addition to the one rupee per unit subsidy for power tariffs, interest subsidies have been maintained. This will have a significant impact on the textile industry. The announcement of this regulation will prevent the textile sector from moving to Navapur in Maharashtra. However, I urge the administration to rapidly implement this policy. According to my information, hundreds of textile policy files have been accepted and are pending implementation in the local DIC, and recipients should receive their benefits as soon as possible. As a result, it is critical to undertake efforts to accelerate the execution of the Gujarat government’s industrial policies.In addition, the five-year time limit of the Gujarat Textile Policy, which expired on December 31, 2023, and the nine-month blackout period must be defined.

Ashish Gujarati, leader of the textile industry: It is a good and reasonable policy. This policy will recover anything from 25% to 40% of your machine’s cost. This will assist both the MSMEs and the large-scale industries. Migration of textile industry to other states would reduce.

Vijay Mewawala, President of the Southern Gujarat Chamber of Commerce and Industry: The state’s new textile policy had been avidly anticipated for some time, and the SGCCI was working tirelessly to bring it to fruition. The chamber demanded that an upfront capital subsidy be included in the state’s new textile strategy, as the TUF subsidy on textiles was eliminated. The state’s new textile policy includes an increase in upfront capital subsidies from 10% to 35% in response to the SGCCI’s demand. In addition, interest subsidies ranging from five to seven percent will be offered for a minimum of five years and a maximum of eight years. In addition, a one rupee power subsidy has been provided. Even if textile industrialists acquire power from discoms and have unfettered access, they will receive a one-rupee subsidy per unit.

 

Nikhil Madrasi, VP of the SGCCI: The textile industry contributes significantly to the economic development and employment sectors of South Gujarat, particularly Surat. In such conditions, the release of the new textile policy will cause Surat, which is known as the hub of MMF fabric, to also become the center of MMF clothes. Overall, the state’s new textile policy applies to the whole textile industry. Textile units that manufacture yarn from polyester staple fiber and viscose staple fiber have also received incentives, particularly in MMF spinning, which has long been a Chamber of Commerce demand. While spinning was not included in the previous textile policy of 2019, the SGCCI attempted to provide benefits to MMF, which is stated in the current textile policy.