In 2012-13, the Govt. brought a policy to run for five years in order to develop all the missing segments from Cotton (farm) to Fiber to Fabrics to Processing to Garment/Made-Ups, and also up to technical textiles. After reviewing the outcome of the policy toa large extent, it was observed that though the policy has reached the segment of cotton ginning and pressing, lower end technical textile, spinning, training centers and textile parks, there are still some segments that are not developed such as weaving, processing, garment-apparel and high-end technical textiles. The Govt. recently took a look at revising the policy and made extension of the same along with giving separate attention to Ready-Made Garment/Apparel segment.
After keen attention, Govt. has decided to come up with a new policy with a scheme to generate One Lakh jobs in support to garment and apparel industries. From October, 2017 the scheme was activated to be applied till 2022.Under the Scheme, payroll assistance of 50% of wages of up to Rs. 4,000/- for female and Rs. 3,200/- formale workerare provided specific to units having minimum 150 machines and generating at least 300 domicile jobs. The incentive is to be given monthly for 5 years. The scheme is targeted to be known as financial assistance by credit linked interest Subsidy in the sector eligible for any ready-to-wear clothing made of natural or MMF or blend or both through stitching and also the policy is designed to provide a subsidy of 5% per annum subject to a maximum of Rs. 7.5 Cr. per year for 5 year, eligible for Land, Building and Plant & Machinery.
The scheme also states to construct dormitories in selected locations and provide them on rent(minimum lockin 10 years) or long term lease basis through GIDC’s(Gujarat Industrial Development Corporation)assistance and rent assistance of 50%to enterprises to be provided by the state govt. Moreover, to private developers 50% project cost subject to a maximum of Rs 5 Cr. for individual units and parks is to be given with specification of dormitories developed for minimum 250 workers with a max built up area of 50 sq. ft. /person.
According to the scheme, Gujarat Industrial Development Corporation (GIDC) will develop readymade sheds (along with adequate support infrastructure) forapparel factories in selected locations and provide them on long term lease or rental basis. Also GIDC will be provided with 50% assistance of project cost, which will be passed on toenterprises on pro rata basis and up to 50% of the total cost of the project with a maximum limit of Rs. 10 crore for mega apparel parks is dedicated in the scheme . 100% stamp duty exemptionfor developer and first purchaser of individual unit is to be provided as well.
Being largest producer of man-made Fibre, Synthetic Fabric and Denim, Gujarat contributes about 12% of the country’s textile exports. Gujarat has the presence of the entire textiles and apparel (T&A) value chain, starting from availability of raw material, yam production, fabric production, up to apparel and made-ups manufacturing units.
As per the report of December 2018, it was notified that over the 5-year period, the incentive made available was 135% of the total capital investment. The payroll assistance subsidy is estimated worth Rs. 6.60 Cr. with 60% of workers being female. On the other hand Rs. 0.09 Cr. is estimated to be the annual power subsidy.