Talks between Gujarat’s Industries’ Commissioner Mamata Sharma and industry representatives were held in Surat during her visit to Southern Chamber of Commerce and Industry (SGCCI) on Friday, to discuss new textile policy to be implemented in October this year.
Gujarat government unveiled its textiles and apparel policy which would offer generous subsidies and incentives. While discussing textile policy with officials, industry representatives raised the issue of power tariff which is almost double than in neighbouring state Maharashtra.
The textile units have been paying Rs. 7.5 per unit for electricity usage, while Maharashtra charges just Rs. 3.75 per unit, which ultimately makes manufacturing costlier in Surat. Investor friendly textile policy and economical tariff power has attracted textile entrepreneurs from Surat to Tarapur and Navagam in Maharashtra. They also raised concern about no-release of subsidy amount of Rs. 650 crore for those who made investments under Technology Upgradation Fund Scheme (TUFS).
According to SGCCI President Hetal Mehta, “New textile policy should pay attention on issues raised by us; if not, then textile industry in Surat would be in trouble.”
The visiting Industries’ Commissioner has however assured them to find a solution to their problems. At least 40 per cent decline in the production of finished fabrics at textile processing units in the Indian textile hub, Surat were reported due to Sluggish market and money crisis.
