New Gujarat Textile Policy 2012 Updates to boost Textile Industry in Gujarat

Starting cotton spinning and weaving parks around cotton growing areas in Gujarat State

Interest subsidy for value-addition chain from ginning to spinning, weaving, processing, garment manufacturing and technology up-gradation in New Gujarat Textile Policy 2012

Gujarat Government’s New Textile Policy to boost textile industry in Gujarat State

 Today on 5th September 2012, Mr. Saurabh Patel has announced a new ambitious Gujarat Vastraniti (Gujarat Textile Policy 2012) to establish Gujarat’s unique identity at national and international market in presence of Gujarat Chief Minister Narendra Modi.  New Gujarat Textile Policy 2012  is expected to attract investment of over Rs.20,000 Crore, creating new employment opportunities for over 25 Lakh people. This will also increase the state’s revenue and growth rate along with growth of the textile industry for rural and urban market.

In last 10 Years, Gujarat has recorded an exponential growth in raw cotton production. As Gujarat Farmers adopted new scientific methods of Farming and BT Cotton, raw cotton production is jump to 1.23 Crore Bales from 23 Lakh Bales approx.

Gujarat Textile Policy 2012 for Cotton Spinning & Ginning Activities

The new policy is to enhance the growth of cotton farmers and ginners, by way of better price realization and to enable them to withstand in uncertainty due to price fluctuation, nationally and internationally, encouragement is made to establish new cotton spinning activities to strengthen the value chain.

IMPORTANT Benefits in Gujarat Textile Policy 2012 ( Sort out by PR Team of NriGujarati.Co.In )

POINT - 1

Refund of Value Added Tax (VAT) paid by Cotton-based units like ginning, spinning and weaving on purchase of cotton / cotton yarn and remission of tax collected on cotton yarn (applicable to the extent of investment in Plant & Machineries)

POINT - 2

Interest subsidy of 5 per cent, without ceiling for the period of five years on new plant & machinery for Ginning & Processing

POINT - 3

Power tariff concession on new investment for cotton spinning at the rate of Re.1 per unit for 5 year period

POINT - 4

Interest subsidy of 7 per cent on new plant & machinery for Cotton Spinning, as well as for second hand imported cotton spinning machinery with certain conditions, without ceiling for the period of 5 years

POINT - 5

Stamp duty exemption to developers and units in parks, and assistance up to 50 per cent with maximum ceiling of Rs.10-crore for common infrastructure in Parks and Other Textiles Activities

POINT - 6

Minimum 150-acre land, stamp duty exemption to developers and units, and assistance up to 50 per cent with maximum ceiling of Rs.30-crore for common infrastructure for Cotton Spinning Park with or without Weaving

POINT - 7

Interest subsidy of 5 per cent on new plant and machinery, without ceiling, for weaving, knitting, machine carpeting and other textile related activities, also on second hand imported weaving (power loom) with certain conditions, for the period of 5 years;

POINT - 8

Power tariff concession of Re.1 per unit for the 5 year period for weaving;

POINT - 9

Interest subsidy of 5 per cent on new plant and machinery, without ceiling for the period of 5 years, in Dyeing and Processing 

POINT – 10

Assistance up to 50 per cent for audit report amounting to maximum of Rs.50,000, assistance up to 20 per cent of cost of equipment subject to maximum Rs.20-lakh, eligible once in 2 years during operation period of the scheme, as support for energy and water conservation and environmental compliance, for Processing Sector and Entire Value Chain.

POINT – 11

Interest subsidy of 7 per cent on new plants and machinery, without ceiling for a period of 5 years, for Garment and Made-ups

POINT – 12

Refund of VAT paid by the unit on purchase of raw material and remission of tax collected on readymade garments, as VAT concession (applicable to the extent of investment in Plant & Machineries).