Gujarat is likely to announce its new textile policy by the end of this month. The government targets fetching Rs 1 lakh crore investments and job creation for 10 lakh people in the state through new textile policy.
The state has been facing tough competition from other states such as neighbouring Maharashtra, Andhra Pradesh and Telangana. These states have received fair investment in the textile sector as compared to Gujarat.
The State Government last year extended its textile policy based on the concept of ‘From Farm to Foreign Export’ for a period of one year. The policy was to expire on September 4. It has constituted a task force to research textile policies and incentives offered by other states in the country.
Cheap power to textile units is expected to be prominent in the policy as major ways to attract investment in the state. Representatives of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) recently raised the issue of high power tariff rates for textile industry in the state.
They urged the government to reduce it by 50 per cent from current Rs 7.50 per unit to bring it at par with other states.
Last month, the state also announced a new scheme under which a part of State Goods & Service Tax (SGST) would be reimbursed to textile industry. The industry presently has to pay a 2.5 per cent of SGST to the Government.
Heritage textile from Gujarat such as patola and bandhani also expected to get prominence in the policy.
