The Karnataka Government has declared ambitious new textile policy for 2013-18, with a target of attracting an investment of Rs. 10,000 crore and employment opportunities for five lakh people. In the new textile policy, the state has been classified into three zones and all areas falling in Bangalore Urban district, except Anekal taluk, will not get any incentives. However, backward districts with potential for textile activities will get the maximum benefits. Relatively developed areas from the perspective of a textile value chain will get marginally fewer benefits. Interest subsidy will be given to small and medium investors in projects worth up to Rs. 99 crore. This amount will be a part of the amount earmarked for credit-linked capital subsidy.
MSMEs with a maximum investment of Rs. 10 crore will be provided credit-linked subsidy of 15 per cent to 20 per cent with a ceiling of Rs. 2 crore.
