Textile Industry

State Textile Policy 2018-23 Textile Industry The textile sector plays an important role in the national economy owing to its major contribution to the GDP, industrial production, employment generation and export revenue generation. The textile industry contributes 14% of India’s industrial production, 4% of its GDP, and 13% of its total exports. The textile industry is one of the leading employment generating industries in the country, employing approximately 5 crore people. The Indian textile industry has the second largest industrial capacity in the world. Availability of raw material, skilledmanpower and lower production costs are its key strengths. The readymade garments sector was worth Rs. 6 lakh crore in the FY 2016-17. The market for readymade garments is divided into three segments viz. domestic market, industrial market and international market. Out of the total readymade garments production, 60% is consumed in domestic sector, 21% is consumed in the industrial sector while 19% is exported. The export of raw fabric and readymade garments will continue to grow in the coming years. The textile industry plays an important role in the State’s economy. It is the second largest employment generating sector after agriculture. There has been a sizeable increase in the ginning, spinning and weaving industry in the State. The State has efficient rail, road, port and airport infrastructure for connectivity, availability of electricity, skilled manpower and abundantly available cotton. The State has set an objective of achieving 100% processing of all the cotton grown in the State. Keeping this objective in mind, and to realize the concept of “Fiber to Fashion”, the State declared its Textile Policy 2011-17 in Jan 2012. The policy led to investments to the tune of Rs.20,000 crore in the sector with employment generation of 3 lakh. The State produces ample quantity of silk in addition to cotton. Sericulture and silk processing industry is an important agriculture and forest based employment generating sector. A farmer can generate an income of approximately Rs. 8 Lakh per Ha in this sector. Maharashtra is the leading non-traditional silk producing State in the country. Sericulture requires less water as compared to other cash crops. It can provide the farmers a guaranteed source of income and thus can prevent rural migration to cities. The State has a very conducive environment for sericulture. Mulberry and Tussar plantation can even withstand unstable weather conditions. The increasing demand for the silk and silk products in the domestic and the export markets, provides for a State Textile Policy 2018-23 guaranteed source of income for the farmers. Thus sericulture has good potential to support the State’s policy of doubling farmers’ income. Further, the Mahareshim Abhiyan could provide an opportunity to uplift the beneficiaries of the Forest Rights Act. The State annually produces approximately 1400 metric tonne of wool from the ‘Deccani’ sheep. However, the sheep rearing community is not able to benefit financially due to lack of supporting infrastructure in the State. Establishment of wool processing industries oriented towards value addition will help boost the income of the sheep rearing community and also reduce rural migration to cities. Apart from cotton, silk and wool, Maharashtra produces a large quantity of bamboo, banana, ghaypat, ambadi and coir. These could be good sources of non-conventional yarn. Today farmers have to pay for removal of the banana barks afterharvesting. However, the banana barks can be processed to produce yarn and this can result into an immediate additional source of income for farmers. The State’s new Textile Policy will provide a stimulus to the textile industry in the State. The policy is aimed at generating 10 lakh new employments in the next 5 years and doubling the farmers’ income by 2022. The policy, which is expected to attract investments worth Rs. 36,000 crore, will provide many benefits including competitive power tariff and increased capital subsidy for SC/ST and minority categories. The policy lays special focus on strengthening the knitting, garmenting and hosiery sector which will create ample employment opportunities for women. This will prove to be an important step forward towards women empowerment and development of women entrepreneurs. The policy aims not only at further strengthening the cotton, silk and wool sectors but also promoting non-conventional yarn production, skill development and increased use of green energy. The State’s innovative measures for the revival of the textile industry is the focal point of the policy. It lays great emphasis on and preference to skill development as well as research & development. Under this policy, the State will establish a first of its kind Textile University and will collaborate with leading technical institutes in the textile sector to undertake world class research & development projects in agriculture universities. This initiative will help fill the void in theoretical and practical aspects of textile education in the State. The Textile Department has planned to create a Textile Development Fund for sufficient State Textile Policy 2018-23 and timely funding as well as meeting essential infrastructure needs of the textile industry. This fund will be generated out of government equity returned by the cooperative spinning mills, sale of the textile department’s land and other assets and 50% of CSR funds from various textile industries which have availed government subsidies and other benefits. At present out of the total cotton production in the State, only 25% of cotton is utilized by spinning mills while the rest of the cotton is sent out of the State. Additionally grey cloth and yarn is sent out of the State for dyeing and processing. The policy is aimed at reducing this gap in the production and processing resulting into an integrated “Farming to Marketing” value chain in the State. In view of the above, the State Textile policy 2018-23 is designed to generate employment in the State through processing of cotton, silk, wool, non-conventional yarn and man-made fiber. Objectives of The Textile Policy 2018-23 1 Encourage setting up of Fiber to Fashion value chain. 2 Generate 10 lakh new employments in the textile sector. 3 Special focus on development of the textile industry in cotton growing areas. 4 pecial focus on processing, knitting, hosiery and garmenting sectors to create an internationally competitive textile industry in the State. 5 Set up pollution free / ecofriendly dyeing and processing industry. 6 Increase Mulberry and Tussar cultivation, increase Silk yarn production and create a silk tourism corridor. 7 Encourage traditional silk weaving businesses such as the Paithani Saree. Also create, promote and market “Adhyatmik Reshim” brand. 8 Special focus on non-conventional yarn (bamboo, banana, ambadi, ghaypat, maize, coir, etc.) and its usage with a view to doubling farmers’ income. 9 Focus on reviving the entire wool industry from shearing to garmenting to marketing. State Textile Policy 2018-23 10 Special focus on the emerging sector of technical textiles. 11 Provide the textile industries with the latest technical expertise created by institutes such as IITs, SASMIRA and WRA which are actively engaged in research & development in the textile industry Textile Components included in Textile policy 2018-23: 1 Cotton ginning and pressing 2 Spinning / silk reeling and twisting / integrated silk park / synthetic filament / yarn texturing, crimping and twisting 3 Weaving and powerloom 4 Technical textile, non-woven and converters of non-woven 5 Knitting / hosiery / garment / apparel & made-up 6 Processing of fiber / yarn / fabric / garments / made-ups 7 Processing of non-conventional fiber / yarn / fabrics / garments / made-ups (bamboo, banana, ghaypat, maize, coir, hemp, etc) 8 Expansion of existing textiles units 9 Textile Parks / processing parks 10 Energy saving and process control equipment for various textile sectors 11 Skill development activities 12 Wool sector (i.e. scouring, combing, spinning (worsted, shoddy and woolen) and weaving and carpet sector. 13 Standalone spinning 14 Spinning with matching downstream capacity 15 Manufacturing viscose filament yarn / viscose staple fiber 16 Independent weaving preparatory 17 Embroidery on standalone basis 18 Composite upgradation (i.e. units going for upgradation in spinning, weaving / knitting State Textile Policy 2018-23 and processing) 19 Multi-activities (units with two or more activities simultaneously except composite upgradation mentioned above) 20 Composite unit 21 Other units of textile industry not mentioned herein Scheme under Textile Policy 2011-17: Projects which have submitted their applications (Form A) under Textile Policy 2011-17 will continue to receive the benefits declared under that policy till the beneficiary period of that project. Extension to the Textile Policy 2011-17: The long term loans approved from 18 April 2016 to 15 February 2018 will be eligible for benefits as per the Government Resolution 2015/C.R 364/Text-5 dated 18 April 2016. Further, the self-financed projects which have ordered machinery between 2 December 2015 and 15 February 2018 will be eligible for benefits as per the Government Resolution dated 2 December 2015. Following schemes will be implemented for the development of Textile industry under Textile Policy 2018-23: 1 Co-operative spinning mills 1.1 The scheme of government equity for co-operative spinning mills will be implemented only in the cotton growing districts of the State. 1.2 The scheme will be implemented only in those talukas where less than 50% of the cotton produced is consumed in the spinning mills situated within those talukas. 1.3 The ratio of self-equity of co-operative spinning mills, government equity and loan from financial institutions will be 10:30:60 with an aim to provide timely government equity to State Textile Policy 2018-23 the co-operative spinning mills. Increase in the self-equity of co-operative spinning mills may be considered in future. 1.4 A provision will be made for appointment of a Government Gazetted Officer as Managing Director by the co-operative spinning mills for human resource development. Training programs will be developed for skill development, capacity building and overall management. 1.5 A scheme will be formulated to encourage / award the co-operative spinning mills based on parameters such as operational performance, power saving, savings in expenditure, audit rating, measures taken for increased profitability / loss reduction, return of government dues, etc. The co-operative spinning mills will be given preference in government schemes including funding and any other subsidy schemes. 1.6 Administrative measures will be put in place for use of modern machinery and solar power by co-operative spinning mills. # One Time Exit Policy: Co-operative spinning mills and co-operative powerloom societies will be allowed to be privatized provided they are ready to return the government equity, loan and interest thereupon. If there is any change in the industrial use of the land then an amount will have to be paid to the government as per the prevailing rules. # Powerlooms: Maharashtra has 13 lakh powerlooms accounting for 50% of the powerlooms in the country. The plain powerloom accounts for 80% (approx. 10 lakh) of the total powerlooms in the State. The following schemes, supplementary to the central schemes, for modernization of plain looms will be implemented with an aim to improve the quality of fabric, productivity of the units, power efficiency, and to make the industry competitive in the domestic and international markets. State Textile Policy 2018-23 State scheme for modernization of plain powerlooms: The State Government will provide the following grant to the powerloom owners who have received the grant from the Central Government under the centrally sponsored “Pilot scheme of in situ upgradation of plain powerloom for SSI Sector” for modification of plain powerlooms:0/- Sr No Type of modernization General Category (35%) Scheduled Castes (20%) Scheduled Tribes (8%) 1) Conversion of simple powerloom to SemiAutomatic shuttle loom Rs 10,000/- Rs 6,800/- Rs 2,400/- 2) Conversion of SemiAutomatic shuttle loom to Shuttle less rapier loom Rs 17,500/- Rs 10,000/- Rs 4,000/- 3) Conversion of simple powerloom to Shuttle less rapier loom Rs 28,000/ Rs 16,000/- Rs 6,400/ This scheme will be implemented as per the terms and conditions of the Central Government scheme. The policy of sanctioning financial assistance after receipt of beneficiary details from the Central Government will be followed. If the scheme is modified by the Central Government then the State Government will also modify the scheme accordingly # Handloom Development The policy for the development of the State’s handloom sector, wherein the State Government’s share of fund to centrally sponsored schemes and supplementary schemes is State Textile Policy 2018-23 made available as and when required, will be continued. There is an increasing demand for the handloom products in the domestic as well as international market. The State Government will develop new schemes for design of handloom products, fusion, etc. in collaboration with NIFT to cater to this increasing demand and to attract young weavers. The loan and the interest thereon given to the Maharashtra State Handloom Corporation will be converted to government equity to strengthen the Maharashtra State Handloom Corporation. # Silk Development The State produces ample quantity of silk in addition to cotton. Sericulture and silk processing industry is an important agriculture and forest based employment generating sector. The silk industry can provide the rural population a guaranteed source of income and thus can prevent rural migration to cities. Its cash crop nature as well as increasing demand for silk in the domestic and international market have created vast opportunities for silk production in the State. The silk industry is a boon for farmers affected by unpredictable weather and can help them generate regular income. It is also very crucial to increase the agricultural growth rate and to double farmers’ income. Considering the importance of silk industry and its scope for generating employment, the following measures will be undertaken to bring the silk industry to the forefront of the State’s economy: State Textile Policy 2018-23 # Wool Industry The State annually produces approximately 1400 MT wool per year from the Deccani sheep. However less than 1% wool is procured by the Punyashloka Ahilyadevi Maharashtra Mendhi va Sheli Vikas Mahamandal. There is no other infrastructure for processing, production and marketing of the wool in the State. Despite the large production of Deccani wool and increased demand in the domestic and international markets, the large sheep rearing community is deprived of the financial benefits due to non-availability of value added processing within the State. Availability of value added processing and marketing facilities for wool in the State will make sheep rearing a source of independent employment generation and will be financially beneficial to the sheep rearing community. This will help reduce their migration to cities. Following measures will be undertaken to achieve this: