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Karnataka ‘New Textile & Garment Policy 2019-2024’ Attracts ₹10,000 crore investments

Karnataka ‘New Textile & Garment Policy 2019-2024’ aims to attract ₹10,000 crore investments and create over five lakhs jobs. The new policy plans to offer cluster based development strategy for providing infrastructure development for greenfield textile parks, brownfield cluster development and common effluent treatment plant and hazardous waste disposal facility.

Karnataka ‘New Textile & Garment Policy 2019-2024’ aims to attract ₹10,000 crore investments and create over five lakhs jobs.The new policy plans to offer cluster based development strategy for providing infrastructure development for greenfield textile parks, brownfield cluster development and common effluent treatment plant and hazardous waste disposal facility.

Briefing reporters after a cabinet meeting, the Minister for Law and Parliamentary Affairs, JC Madhuswamy said, “The Cabinet has cleared a new textile policy. The ‘New Textile & Garment Policy 2019-2024’ brings in few changes to the existing policy, to make the State a leading destination in textile and apparel sector and to make the textile value chain into a gold mine value chain.”

Madhuswamy said Karnataka’s exports amounted to ₹5.48 lakh crore in 2016-17 which accounted to about 18.78 per cent of the country’s exports. Also the State has a high impact on the production of raw materials and is one of the leading producers of silk. It contributes 49 per cent to mulberry silk, 12 per cent to wool and 6 per cent of cotton production in the country.

The Minister said, “The overall budget requirement for implementation of the policy is expected to be about ₹2,282.86 crore spread over the next eight to nine years. During the policy period (2019-24) the budget requirement is around ₹1,582.17 crore.”

The new policy also provides for capacity building and vendor development, and envisages creation of centres of excellence for textiles/technical textiles.For equitable investment flow into the State, the policy has come out with zonal classification.

As per the classification: Zone 1 – Entire Hyderabad-Karnataka (HK) region, Zone 2 – all areas other than municipal corporations, district headquarters in non HK region. Zone 3 – all municipal corporations, district head quarters in non HK region and Zone 4 – Bengaluru urban and Bengaluru rural districts.

The policy also aims to offer segment wise incentives like ginning, spinning, weaving (handloom and powerlooms), processing, integrated units, garmenting fashion/buying houses, technical textiles, silk and wool.

A special package is also available for mega units – for textiles this involves fixed investments above ₹300 crore and minimum employment of 350; for garments units it is for fixed investments above ₹200 crore and minimum employment of 3,000 people.

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