tamilnadu new integrated textile policy 2019 · terms, 2% of india's gdp and to 15% of...

TAMILNADU NEW INTEGRATED TEXTILE POLICY

2019

Handlooms, Handicrafts, Textiles & Khadi Department

CONTENTS

S.No. Details PageNo.

1. PREAMBLE 1

2. NEEDFORNEWINTEGRATEDTEXTILEPOLICY 3

3. OBJECTIVES 4

4. FOCUSAREASOFPOLICY 5

5. APPROACH 6

6. OPERATIONALPERIODOFPOLICY 6

7. SPINNING 6

7.1 Status 6

7.2 IncentivesOffered 8

8. HANDLOOM 9

8.1 Status 9


9. POWERLOOM 12

9.1 Status 12


10. PROCESSING 16

10.1 Status 16


11. KNITTING&GARMENTING 19

11.1 Status 19


12. TECHNICALTEXTILES 21

12.1 Status 21


13. TEXTILEPARKS 23

13.1 Status 23


14. STANDARDINCENTIVESFORTEXTILEINDUSTRY 24

15. SPECIALPACKAGEFORSOUTHERNDISTRICTS 25


16. SKILLDEVELOPMENT 26

17. SINGLEWINDOWCLEARANCE 27

18. STATETEXTILEADVISORYCOMMITTEE 28

19. SUPPORTINGINFRASTRUCTURE 29

19.1 Energy/Water/EnvironmentalCompliance 29

19.2 TechnologyAcquisition,Upgradation&

Innovation 29

19.3 LabourQuarters/WorkersHostel 30

19.4 ESIFacility 30

20. LABOURSECTORINITIATIVES 30

21. GOODSANDSERVICESTAX(GST) 31

22. EXPORTS 31


23. FOREIGNDIRECTINVESTMENT(FDI) 32

TamilnaduNewIntegratedTextilePolicy2019 1

TAMILNADUNEWINTEGRATEDTEXTILEPOLICY

2019

1. PREAMBLE

TheStateofTamilnaduhasalwaysbeenintheforefrontofeconomicgrowth

inthecountry.TheStatehasmadeimpressivestridesovertheyearstocarveouta

niche for itself in the �ields of engineering, automobiles, textiles, leather,

Information Technology, electronic hardware and hi-technology industries.

TheGross StateDomesticProduct (GSDP) stood at 157.85billionUSdollars at

constant prices in 2016-17. The industrial GSDP of Tamilnadu grew at an

impressive rateof 8.79% from the year2011-12 to2015-16at constantprices

higherthantheNationalaverageofabout7.6%.

Tomaintain itspositionasaprogressiveState, theGovernmenthastaken

proactivestepslikethereleaseofVision2023Tamilnadudocument,formulationof

Tamilnadu Infrastructure Development Act, Rules and Regulations, along with

TamilnaduTransparencyinTenders(PublicPrivatePartnershipandProcurement)

ActandRules.TheUnitedNationsReportonProbityinPublicProcurementhas

recognizedTamilnaduasthe�irstStatetohavealegislativeframeworktodealwith

PublicPrivatePartnershipprocurement.

The Vision 2023 Tamilnadu document which lays out the road map of

developmentfortheState,aimstoachieveaconsistenteconomicgrowthrateof

14% per annum in a highly inclusive manner and to identify and remove the

bottlenecksindevelopment,prioritizecriticalinfrastructuralprojects,andworkto

propeltowardstheStateofTamilnadutotheforefrontofdevelopment.

Traditionally,Tamilnaduhasbeeninthevanguardofindustrializationamong

the Indian States and always been a safe haven for the investors owing to a

TamilnaduNewIntegratedTextilePolicy2019

favourable business climate, excellent infrastructure for trade and investments,

peaceful law and order situation, harmonious industrial relations and healthy

socio-economicreforms.

Tamilnadu is increasingly becoming the choice of destination for foreign

investors,whichprovidesthemwithaglobalreach.Rankedamongthetopthree

IndianStates in termsofPurchasingPowerParity (PPP),Tamilnadu isadream

cometrueforallthoselookingforarichculturalheritage,ahighlyproductivework

force,excellentinfrastructuraldevelopmentandcost-effectiveoperations.Eachof

thesefactsissubstantiatedbyanenviabletrackrecord.

The State also compliments with adequate skilledmanpower, salubrious

working conditions, a peaceful industrial climate, committed workforce and

extremelycompetitivewageratesthatoffersubstantialcostsavings.

TheIndiantextileindustrycontributesto7%ofIndustrialoutputinvalue

terms,2%ofIndia'sGDPandto15%ofCountry'sexportearningswithmorethan

45million people employed directly. The textile industry is one of the largest

sourcesofemploymentgenerationintheCountry.OurStatehasastrongpresence

intextilesandthesecondlargestcontributortotheIndianTextilesIndustryand

predominantlycottonbased.TheStatemarksitsoverwhelmingpresenceinallthe

subsectorsoftheindustryviz.,Spinning,Handloomweaving,Powerloomweaving,

Processing,Knitwear,ApparelandGarmenting.

Some of the textile products from Tamilnadu which are universally

recognised for the excellent craftsmanship and their uniqueness are

KancheepuramSilkSarees,BhavaniCarpet(Jamukalam),MaduraiSungadiSarees,

CoimbatoreKoraSarees,ParamakudiSarees,SalemSilkDhoties,ErodeandKarur

HomeTextiles, TiruppurKnitwearGarments, etc. Tamilnadu acts as the hub of

textileexportsfromthecountryviz.,TiruppurforKnitwearGarments,Coimbatore

forYarn,KarurforHomeTextilesandChennaiforWovenGarmentexports.

The State accounts for 19% of the Nation's Textile output with a robust

networkofallthesub-sectorsoftheTextileindustry.StateTextileindustryisthe

largesteconomicactivityafterAgriculture.

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Tamilnaduis the leadingState intheCountry inTextilesectorandhaving

majorstakeholderswith46%ofSpinningcapacity,60%ofyarnexport,20%of

Powerloomcapacity,12%ofHandloomcapacity,70%ofCottonFabricKnitting

capacity, 20%TUFs investments, direct employment to around 31 lakh people,

morethanRs.50,000croreexportsand1/3��oftextilebusinessinthecountry.

2. NEEDFORNEWINTEGRATEDTEXTILEPOLICY

The erstwhile State Textile Policy 1998 contains broad statements of the

textilesindustry.Thestatedobjectiveofthetextilepolicyof1998wastoincreasein

productionofclothofacceptablequalityatreasonablepricestomeettheclothing

requirementofgrowingpopulation.Inpursuitofthisobjective,thegenerationof

employmentandexportpotentialoftheindustrywerealsokeptinview.


TheVision2023Tamilnadudocumentenvisagesa14%annualgrowthinthe

manufacturingsectorandaninvestmentofRs.15lakhcroreinthenext10years.

Inordertoattainthegrowthtargets�ixedfortherespectiveeconomicindicators,

theformulationofanewpolicyforthetextilesectorhasbecomeimperative.

The Textile Industry is now facing new challenges and looking at new

opportunities due to the changing global environment viz., abolition of quota

system,favourableimporttermsforcountrieslikeBangladesh,Vietnam,SriLanka

etc.OtherStatesinIndiahavealsointroducedattractiveincentivepackagesforthe

textilesector.Therefore,thereisaneedtoformulatedynamicandgrowthoriented

NewIntegratedTextilePolicyforTamilnadu.

3. OBJECTIVES

ThebroadobjectivesoftheTamilnaduNewIntegratedTextilePolicyare:

1) tosustainnumero-unostatusofTamilnaduintextileindustryinthecountry;

2) toachievehigherandsustainablegrowthintheentiretextilevaluechainfrom

�ibre to fashion, with emphasis on balanced regional development and

holisticapproach;


3) t o a c t i v e l y e n c o u r a g e

increasing cotton production

and productivity within the

State;

4) tosupporttheindustrytobuild

world-class state-of-the-art

technology in conformitywith

the environmental and social

standards;

5) tocreateamodern,vibrantintegratedandworldclasstextilesectorincluding

handloom,powerloom,spinning,processingetc.,toproducecosteffective

andhighqualityyarn,textiles,apparelsetc.,forsupplyingtherequirementof

domesticandexportsector;

6) to encourage the industry to give more emphasis on innovation,

diversi�ication,valueadditionetc.;

7) todoubletheshareoftextilesexportsfromtheState;

8) to facilitate and promote Technical Textile in the critical areas such as

production,technology,research&development;

9) tosupporttheindustrywithskilledhumanresourcesandtocreateadditional

employmentopportunities.

4. FOCUSAREASOFPOLICY

ThefocusareasofinterventionsintheNewIntegratedTextilePolicy2019are:

1) Sustenance of traditional

h a n d l o om s e c t o r t o

preserve the skills and

a r t s i t ry o f hand loom

weaversofourState;

2) Design Development and

ProductsDiversi�ication;


3) Capacity building and Development of Environment Friendly Processing

Sector;

4) FocusonDevelopmentofDecentralisedKnittingandGarmentingSectorin

otherpotentialclusters;

5) PromotionofTechnicalTextiles;

6) Ful�illingtheskillrequirement;

7) HolisticandHarmoniousIntegratedTextileDevelopement.

5. APPROACH

Keepingtheaboveobjectivesinmind,thisPolicyadoptsamulti-prongedapproach

of,

1) providingsupportforthesustainabilityandgrowthoftheHandlooms;

2) providingattractiveincentivestoencourageinvestmentsto�illcriticalgapsin

thetextilevaluechain;

3) providingsupporttocreateaworld-classinfrastructure;

4) focusedareaonTechnicalTextile;

5) improving the availability and quality of human resources by skill

upgradationandcreationofgainfulemploymentforskilledandsemi-skilled

manpower.

6. OPERATIONALPERIODOFTHEPOLICY

TheNewIntegratedTextilePolicyofTamilnaduwillcomeintoforcefromthe

dateofannouncementofthisPolicybytheGovernmentofTamilnadu.

7. SPINNINGSECTOR

7.1. Status

The Spinning sector is the cornerstone of Tamilnadu's industrial

developmentandhasbeenabletokeeppacewithtechnologicaltrends.Tamilnadu

enjoys the premier position in the country, both in terms of spindleage and

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production of yarn. Out of 3376 spinning mills in India, 2013 are located in

Tamilnaduprovidingemployment to2.80 lakhwork force.Of the53.05million

spindlesinIndia,24.10millionspindlesareinstalledinourState.Asagainstthe

5659.58millionkgs.ofcotton,blendedandnon-cottonspunyarnproducedinIndia,

2003.20million kgs. of spun yarn are produced in Tamilnadu during the year

2016-17.TamilnaduisthenumberoneproducerofcottonyarnandleadingStatein

theCountryinexportofcottonyarn.Tamilnaduisalsooneofthemajorproducers

ofsyntheticyarnintheCountry.

Neverthless,theStateSpinningSectorpossess60%ofSpinningMillsinthe

Countryandholdsthenumberonepositiontilldate.Still,manyoftheSpinningMills

intheStatearefunctioningwithobsoletemachineryandarenotequippedwith

State-of-the-arttechnology.ThisisevidentfromthefactthattheSpindlecapacityof

theState isonly46%andsimilarly,35%ofyarn isproducedasagainst60%of

SpinningMillsinourState.ThecottonbasedSpinningSectoroftheStateisalsonow

shiftingattentiontoManMade/SyntheticFilamentYarn.

7


ToretainthepremierpositionofTamilnadu,theSpinningmillsintheState

need to be modernised with the latest technologies, so as to increase their

productivityandproductionatreasonablecost.The�inancialassistanceprovided

bytheGovernmentofIndiaforTechnologyUpgradationinSpinningsectorunder

TUFShasbeenwithdrawn,sincethelaunchofAmendedTechnologicalUpgradation

FundScheme(ATUFS)inJanuary,2016.

Thereare6Co-operativeSpinningMillsand7NationalTextileCorporation

MillsfunctioningintheState.TheCo-operativeSpinningMillsintheStatearesetup

bytheGovernmentofTamilnaduwiththeobjectiveofprovidingun-interrupted

supplyofhankyarnat fairprices tohandloomweavers in theStateandalsoto

providesustainableemploymenttothemembersofweavers’families,repatriates

andAdi-dravidarsinruralareas.Inordertocopeupwiththelatesttechnological

trends and to increase the productivity by strengthening the capacity,

the Co-operative Spinning Mills have been modernized at the total cost of

Rs.175.24crore.TheseMillsare functioningwith1,18,368spindlecapacityand

produceyarntothevalueofRs.320croreperannum,catertotheyarnrequirement

ofWeaversCo-operativeSocietiesandforGovernmentSchemes.

7.2. IncentivesOffered

The spinning sector has been able to keep pace with international

technological trends toa fairdegree through theTechnologyUpgradationFund

Scheme(TUFS).ItiscommendabletonotethatthegrowthofthissectorintheState

hasreachedanappreciablelevelandhenceforththefocusofthispolicyistosustain

theunitsandtobemorecompetitive.

Tohelpcontinue thisgrowth, the following incentivewillbeprovided for

spinningsectorunderthispolicy:

1) 2%InterestSubventionforinvestmentsonTechnologicalUpgradationand

ModernizationinexistingSpinningMillswithavintageperiodofminimum15years

oninstalledmachinery.

8


8. HANDLOOMSECTOR

8.1. Status

Handloom sector, with its long tradition of excellence in craftsmanship,

occupies a place of eminence in preserving heritage of our state and plays an

importantroleintheeconomyoftheState.Tamilnaduhastheprideforitsunique

Handloom products like Silk Sarees, Cotton Sarees, Dhoties, Lungies, Towels,

FurnishingMaterials,etc.

There are 21.46 lakh handlooms in India, ofwhich 1.89 lakh handlooms

areintheState.HandloomsectorinTamilnadu,isuniqueinthesensethatmajority

ofthehandloomweaversareintheCooperativefold.TheStatehandloomsector

providesemploymenttoaround3.19lakhhandloomweavers,whichoccupiesthird

positioninthecountryintermsofnumberofhandloomsinstalledandproduction.


Thefollowingfacilitieswillbeextendedtohandloomsector:

1) ProductionofSareesandDhotiesunderCostFreeDistributionofSareesand

Dhoties Scheme and production of Uniforms Cloth Varieties under Free

SupplyofUniformstoSchoolChildren,toprovidecontinuousemploymentto

9


handloomweaversinco-operativefoldandtoful�illtheclothingneedsofthe

peopleandpupilsofTamilnadu;

2) Scheme for Free Supply of Electricity to HandloomWeavers households

@200unitsbi-monthlytoweavers’households;

3) SavingsandSecuritySchemewithStatecontributionof8paiseperrupeeof

wage earned by the co-operative handloom weavers, to encourage the

savingshabit;

4) Family Pension Scheme of Rs.1,000/- per month for the nominee of the

co-operativehandloomweaver,deceasedbeforeattainingtheageof60years;

5) Old Age Pension Scheme of Rs.1,000/- per month for the co-operative

handloomweaversonattainingtheageof60years;

6) Handloom Support Programme to support innovation and product

diversi�icationinthehandloomsector,withanallocationofRs.40crore;

7) Life Insurance Scheme, under Pradhan Mantri Jeevan Jyoti Bima Yojana

(PMJJBY), PradhanMantri Suraksha Bima Yojana (PMSBY) andMahatma

Gandhi Bunkar Bima Yojana (MGBBY) for the handloom weavers and

ancillaryworkers;

8) ToprovidecreditassistancetothehandloomweaversunderWeaverMUDRA

SchemeoftheGovernmentofIndia;

9) ProvidinginfrastructuralfacilitiesforthehandloomclustersthoughCluster

Development Programmes under National Handloom Development

ProgrammeoftheGovernmentofIndia;

10) Hank Yarn Obligation to ensure availability of hank yarn to handloom

weavers.TransportSubsidy,DepotExpensesandHankYarnPriceSubsidyto

handloomweaversonthepurchaseofhankyarnandsilkyarnunderYarn

SupplySchemeoftheGovernmentofIndia;

11) Toprotecttheheritageofhandloomvarieties,supportwillbeprovidedto

registerhandloomvarietiesundertheGeographicalIndicationAct,1999;

12) StepswillbetakentoregistertraditionalproductssuchasThirubuvanam

Sarees, Koorainadu Sarees, Kodalikaruppur Sarees and other suitable

productsundertheGeographicalIndicationAct,1999,toprotecttheheritage

andweavingcraftsmanship;

10


13) To provide exclusive identity to the handloom products and tomake the

consumers aware of genuine handloomproducts from fake ones through

“HandloomMark”,“SilkMark”and“IndiaHandloomBrand”;

14) TheGovernmentwill focus onWeaver Centric Programmes and schemes

bene�ittingbothco-operativefoldandoutsideco-operativefoldweavers;

15) InterestSubsidyforPrimaryHandloomWeaversCo-operativeSocietieswill

beenhancedfromthepresent4%to6%toreducetheinterestburdenofthe

HandloomWeaversCo-operativeSocieties;

16) Topromotethesaleofhandloomcloth,increaseofRebateSubsidyScheme

allocationforco-operativesectorfromRs.80croretoRs.150croreperyear;

17) Design Development, Products Diversi�ication and introduction of new

productsbasedonotherrawmaterialslikeTussarSilk,Linen,Jute,etc.,will

befocusedtocatertotheneedsofthemarkettrendsanddemands;

18) To train, retrain and upgrade the weavers' skill, multi-level training in

weaving, design development and processing including dyeing will be

provided by dovetailing funds under Skill Upgradation Schemes from

TamilnaduSkillDevelopmentMission;

19) Withanobjectivetodevelopthesilkhandloomindustry,aSpecialRebatefor

Silkwillbeprovidedtomarkethandloomsilkproductsoftheco-operatives;

20) TheStatewillencouragesettingupofSilkParksinprominentsilkclusters

viz.,Kancheepuram,Salem,ArniandThirubuvanam;

21) e-Marketingwillbeencouragedtoexpandthemarketingopportunitiesof

handloomproducts;

22) HandloomCensuswillbeundertakenatregular intervals, incoordination

withtheGovernmentofIndia,soastoformulateasuitablepolicyanddevise

needbasedprogrammes;

23) Credit support tohandloomweaverswillbeprovided forProductionand

Marketing, dovetailing funds from Government of India Schemes and

NABARD.

11


9. POWERLOOMSECTOR

9.1. Status

Powerloomsectorisoneofthemostsigni�icantsegmentsofthetextilevalue

chain.Withintheweavingsector,increasingdominanceofthepowerloomsectoris

beingwitnessedovertheyears.Tamilnaduholdsthesecondpositioninthecountry

intermsofnumberofpowerloomsinstalled.Thereareabout24.86lakhregistered

power looms in India, of which, Tamilnadu has 5.63 lakh power looms with

10.19 lakh workforce. The State has 212 Power loom Weavers Co-operative

Societies and these Societies are producing cloth required for the Cost Free

Distribution of Sarees and Dhoties Scheme and the Scheme of Free Supply of

UniformstoSchoolChildren.TheReady-madeGarmentsandHomeTextilessector,

whicharemainly focusingon internationalmarketarehighlydependentonthe

Power loom sector to meet their fabric requirement. Government desire that

powerloomsandhandloomsco-existharmoniouslyanddonotcompetewitheach

other'sexclusivetraditionalmarkets.

12


InTamilnadu,PowerloomsaremainlyconcentratedinthedistrictsofSalem,

Namakkal,Erode,Tiruppur,Coimbatore,Karur,Madurai,Tirunelveli,Virudhunagar

andThiruvallur.Thissectorrequiresmodernizationandtechnologicalupgradation

tocopeupwiththecut-throatcompetitioninthedomesticandoverseasmarket.

Governmentwilltakeallstepstoencouragethepowerloomsectortomodernize

and�illthegapsinthesector.


The following assistances are provided by the Government for the

developmentofthePowerloomsector:

1) SchemeforFreeSupplyofElectricitytoPowerloomWeavers@750units

bi-monthlyforabout1.06lakhPowerloomunitsandConcessionalpower

tarifftoPowerloomsector;

2) ProductionofSareesandDhotiesunderCostFreeDistributionofSareesand

DhotiesSchemeandproductionofUniformsClothVarietiesunderSchemeof

Free Supply of Uniforms to School Children to provide continuous

employmenttopower loomweavers inco-operative foldandto ful�ill the

clothingneedsofthepeopleandpupilsofTamilnadu;

3) 10%Credit LinkedCapital Investment Subsidy forPower loomsector for

investmentsonbrandnewshuttle-lessloomsunderAmendedTechnology

UpgradationFundScheme(ATUFS);

4) Toprovideaworldclassinfrastructuretointegrateproductionchain,toful�ill

the business needs, to boost production and export, to overcome the

bottlenecksininfrastructureandcommonfacilitiesinbrown�ieldclusters,

subsidyof60%oftheprojectcostwithmaximumceilinguptoRs.50crore

underModi�iedComprehensivePowerloomClusterDevelopmentScheme

(MCPCDS)oftheGovernmentofIndia;

5) Insurance cover to the power loom workers in case of natural death,

accidentaldeathandpartial/permanentdisabilityduetoaccident,under

Universal Insurance Coverage Scheme of the Government of India with

coverageofRs.1,00,000/-toRs.4,00,000/-;

13


6) To provide speci�ic skills as per the requirement of Apparel and other

Segments of Textile Industry, 75% of the cost subject to the ceiling of

Rs.10,000/-perpersonunderIntegratedSkillDevelopmentScheme(ISDS);

7) Financial assistance such as life insurance cover, marriage assistance,

educational assistance, maternity assistance, assistance for purchase of

spectacles and pensionary bene�it to the Power loom weaving workers

throughtheTamilnaduPowerloomWeavingWorkers'WelfareBoard;

8) TheStateGovernmentwillcontinuetoimplementtheCentralschemesforthe

welfareanddevelopmentofthepowerloomsectorasawhole;

9) ImplementationofPowerTexIndia,aComprehensiveSchemeforPowerloom

SectorDevelopmentlaunchedbytheGovernmentofIndiawiththefollowing

components:

a) In-situUpgradationofPlainPowerlooms

Financial assistance ranging from Rs.20,000/- to Rs.81,000/- is

provided to economically weaker low-end Power loom units for

upgradingplainloomstosemi-automatic/shuttlelessloom.

b) GroupWorkshedScheme(GWS)

Tofacilitateestablishmentofworkshedsforshuttlelesslooms,subsidy

of Rs.400/- to Rs.900/- per sq.ft. is provided towards the cost of

construction.

c) YarnBankScheme

InterestfreecorpusfunduptoRs.200lakhperyarnbankisextendedto

SpecialPurposeVehicle/Consortiumtopurchaseyarnatwholesale

rate.

d) CommonFacilityCentre(CFC)

SubsidyuptoRs.200lakhperCFCisprovidedforsettingupofdesign

centre/studio,testingfacilities,trainingcentre,informationcumtrade

centreandcommonrawmaterial/yarn/salesdepot,watertreatment

plant, dormitory, worker's residential space, pre-weaving and

post-weavingfacilitiesetc.

14


e) PradhanMantriCreditSchemeforPowerloomWeavers

MarginMoneySubsidy@20%ofprojectcost,withaceilingofRs.1lakh

andInterestSubvention@6%peryearforworkingcapitalloanand

termloanforamaximumperiodof5yearsisprovidedtodecentralized

Powerloomunits/weaverstomeettheircreditrequirements.

f) SolarEnergySchemeforPowerlooms

Financial assistance / capital subsidy ranging from Rs.2.23 lakh to

Rs.8.55lakhisprovidedtosmallPowerloomunitshavingupto8looms,

forinstallationofSolarPhotoVoltaicPlant.

g) FinancialassistancetowardsFacilitation,IT,Awareness,Market

DevelopmentandPublicityinPowerloomsector.

h) Tex-VentureCapitalFund

50%ofprojectcost,withaceilingofRs.3croreisinvestedbySIDBI

VentureCapitalFundLtd.,(SVCL)asequitysharesand/orinstruments

convertible into equity in innovative private Power loom MSME

companies.

10) TheGovernmentofTamilnaduwillprovide10%additionalCapitalSubsidy,

subjecttoRs.4lakhperloomforpurchaseofbrandnewshuttlelesslooms

underAmendedTechnologyUpgradationFundScheme(ATUFS);

11) TheGovernmentof India isproviding10%CapitalSubsidy forpromoting

brand new preparatory machines. The State Government will provide

additional10%CapitalSubsidysubject toa ceilingofRs.30 lakhperunit

(2UnitsofWarpingMachines&1UnitofSizingMachine);

12) The Government of India is providing 50% Capital Subsidy for in-situ

upgradation of Plain looms to Semi Automatic Shuttle Looms, Semi

Automatic Shuttle Looms to Shuttleless Rapier Looms, Plain Looms to

ShuttlelessRapierLoomsunderPowerTexIndia.TheStateGovernmentwill

alsoprovide10%additionalcapitalsubsidyunderthisscheme;

15


13) To ful�ill the business needs and integrate the production and boost the

export by creating world class infrastructure, 9% of project cost, with a

maximumceilingofRs.9crorewillbeprovidedasStategrantsimilartothe

grants provided under Scheme for Integrated Textile Parks (SITP) under

Modi�ied Comprehensive Power loom Cluster Development Scheme

(MCPCDS);

14) OneTimeAssistanceof25%oftheprojectcost,withaceilingofRs.10crore

forsettingupofTradeFacilitationCentreonPPPmodelwillbeprovided,

ifencumbrancefreelandisavailablewiththeindustry;

15) PowerloomCensuswillbeundertakenatregularintervals,incoordination

withtheGovernmentofIndia,soastoformulateasuitablepolicyanddevise

needbasedprogrammes;

10. PROCESSINGSECTOR

10.1.Status

Theprocessingofyarnandfabricsatpre-loomaswellaspost-loomstagesis

signi�icantlycontributing to theessentialcustomizationof theproductandalso

aestheticvalueaddition.Processingincludesdyeing,printingandclothpreparation

priortomanufacturingofclothing.Thestateoffersacompleteecosystemofthe

textileindustryandthedyeingunitsincompliancewithZeroLiquidDischargeof

ef�luentstocomplywiththeenvironmentalstandardsprescribedbythePollution

ControlBoardbyapplyingmoderntechnology.Thereare2614HandProcessing

Units(25%oftotalunitsinIndia)and985PowerProcessingunitsinTamilnadu


whichis40%oftotalunitsincountry.Processingsectorisperhapstheweakestlink

intheentiretextilevaluechainwithhugerequirementofwaterandposeathreatto

environment.

TheStateprocessingsectorismainlyfocusingonyarndyeingandbleaching.

Whereas,theinstalledcapacityinFabricDyeingandWiderWidthFabricPrinting

likeRotaryPrintingSystemisinadequatetocatertotherequirementsoftheState.

Thereby,thegreyfabricsproducedinandaroundErodeclusterareexportedto

otherprintingclusterslikeJaipurinRajasthan,UjjainiinMadhayaPradesh,Meerut

inUttarPradesh,AhmedabadandSuratforPrintingandaremarketedinourState.

OurStateislosingitspotentialinFabricPrintingandalsoinvolveswastageoftime

ontransportation,effortandaddoncostonprintingcharges.Athrustshouldbe

giventoencouragecapacitybuildingintheFabricPrintingsegmentofprocessing

sector.

The entire processing sector needs to be supported and upgraded for

inclusivegrowthandtofacilitateprocessingataninternationallyacceptablelevel,

bytakingintoaccounttheenvironmentalissues.Accordingly,theGovernmentof

Tamilnaduhavebeentakingproactivestepstoensureenvironmentalprotection

and theonlyState ensuring centpercentZeroLiquidDischarge (ZLD)ofTrade

ef�luentsfromthedyeingandprocessingunits.

TheGovernmentwillfocusonsettingupofCETPswithZLDfacilityinTextile

ClustersbothintheformofsettingupofGreenFieldTextileProcessingParkswith

CETPandalsosettingupCETPsalonebyinterlinkingexistingdyeingunits,toarrest

pollutionandtoensureenvironmentalprotection.

17



1) 10%CreditLinkedCapitalInvestmentSubsidyforProcessingsectorunder

theAmendedTechnologyUpgradationFundScheme(ATUFS);

2) Financialassistanceof50%oftheprojectcost,subjecttoamaximumceiling

ofRs.75.00croreperprojectbytheGovernmentofIndiaforestablishmentof

ProcessingParksunderIntegratedProcessingDevelopmentScheme(IPDS).

Inaddition,StateGovernment�inancialassistanceupto25%ofprojectcost,

subjecttoamaximumceilingofRs.37.50croreperproject;

3) TheStateGovernmentwillcontinuetosupporttheCentralschemesforthe

developmentofprocessingsector;

4) Under Integrated Processing Development Scheme (IPDS) for the

establishment of Processing Parks, Interest subvention of 5% will be

providedforthecreditavailedtowards25%contributionofSPV;

5) Financial assistance in the formof 10%Capital Subsidy,with a ceiling of

Rs.20lakhpermachinewillbeprovidedonpurchaseofWiderWidthFabric

PrintingMachines;

6) TocreatenecessaryinfrastructuralsupportforpromotingErodeasTextile

ProcessingPrintingCentre,�inancialassistancewillbeprovided;

7) Assistanceof15%CapitalSubsidywillbeprovidedforsettingupofEf�luent

Treatment Plants (ETPs) / Hazardous Waste Treatment Storage and

Disposable Facility (HWTSDF) with Zero Liquid Discharge, subject to a

maximumsubsidyofRs.5crore;

8) SupportwillbeprovidedforResearchandDevelopmentonPPPmodefor

ef�icientef�luentmanagementandforminimizingoperationalcostofCETPs

andIETPs;

9) Processing Cluster will be promoted in Ramanathapuram district with

�inancialassistanceundertheIPDSscheme.

18


11. KNITTING,APPARELANDGARMENTINGSECTOR

11.1.Status

TheKnitting,ApparelandGarmentingsectoristhe�inalstageofthetextile

valuechainandmaximumvalue-additiontakesplaceatthisstage.Thisindustryhas

madetremendousstrideintheState.Thisisanexportintensivesector,besides,

there is also signi�icant growth in organized retailing in the domestic market.

Employment generation especially for the women is the special characteristic

featureofthissector,basedonlowandmediumticketinvestment.

Tamilnadu is home to the largest knitting industry and has the biggest

knittingclusterinIndia–Tiruppur,whichisthemajorhubofknitwearexportsin

India,contributing45%oftotalknitwearexports,ofwhich,morethan90%are

cottonbasedgarments. Tiruppurclustergeneratesgainfulemploymentto6lakh

personsdirectlywithlargenumberofruralhands.Ithousesmorethan6000units

which predominantly consists of Knitting and Garmenting. Besides domestic

turnoverofRs.10,000croreperannum,Tiruppurcurrentlyundertakesexportsof

over Rs.25,000 crore. Similarly, Chennai is a major Cluster for Ready-made

Garmentswithsubstantialvolumeofexports.

19



FollowingassistancesareofferedtoKnitting,ApparelandGarmentingsector

bytheGovernment:

1) 40%oftheProjectCost,limitingtoRs.40croreforsettingupofTextileParks.

Inordertoprovidea�illiptotheApparelManufacturingunitsandthereby

generateadditionalemployment,particularlyforwomen,anadditionalgrant

upto Rs.10 crore per Park by the Government of India for setting up of

additional infrastructure including factory buildings for apparel

manufacturingunits,commonfacilitieslikecreches,workingwomenhostel,

canteenetc.,requiredforapparelandancillaryunits;

2) 15% Credit Linked Capital Investment Subsidy (CIS) for investments in

GarmentingsectorunderAmendedTechnologyUpgradationFundScheme

(ATUFS)bytheGovernmentofIndia;

3) Considering the incomparable employment potential and exports in the

garmentingsector,theGovernmentofIndiahaslaunchedaslewofmeasures

under the Scheme for Production and Employment Linked Support for

GarmentingUnits(SPELSGU):

a) In addition to the regular 15% Capital Investment Subsidy (CIS)

provided for garmenting units underATUFS, additional 10%CIS to

Garmentingunitsforbenchmarkedeligiblemachinery;

20


b) Reductioninnumberofworkingdaysfrom240to150undersection

80JJAAofIncomeTaxAct;

c) GovernmentofIndiawillbeartheentire12%ofEmployeeProvident

FundSchemecontributionofemployer;

d) FlexibilityinLabourLawstoincreaseproductivity;

4) ForsettingupofNewTrainingCentresforApparelandTextileslinkedwith

ITIs,25%Subsidyformachinerypurchased,subjecttoamaximumceilingof

Rs.20 lakhperCentrewillbegiventhroughTamilnaduSkillDevelopment

Agency;

5) SettingupofTraining-cum-ProductionCentresatpotentialclustersonthe

conceptofPlugandPlaywillbeencouragedbyprovidingassistanceunder

variousschemes;

6) ProminentKnitwearAssociationsandTrainingInstituteswillberopedinto

imparttraininginKnitwearandGarmentingsector.

12. TECHNICALTEXTILES

12.1.Status

Technical Textiles are textile

materials and products used for

technicaloperationswithfunctional

properties. Based on the product

s p e c i � i c a t i on s a nd e nd - u s e

applications,theTechnicalTextileis

grouped under 12 segments, viz.,

Agrotech,Meditech,Buildtech,Mobiltech,Clothtech,Oekotech,Geotech,Packtech,

Hometech,Protech,IndutechandSporttech.Thereisascopeforhugemarketforthe

TechnicalTextile.ThoughIndiaisthesecondlargesttextileeconomyintheworld

afterChina,itsconsolidationintheglobalTechnicalTextileindustryisinsigni�icant.

It is strongly felt thatdue to thevast textilebase, theStatehas thepotential to

emergeasasigni�icantplayerintheglobalTechnicalTextilemarket.SouthIndia

TextileResearchAssociation(SITRA),CoimbatoreandPSGCollegeofTechnology,

CoimbatorehavebeendesignatedasCentreofExcellence(CoE)forMeditechand

Indutech,respectively.

21



TheGovernmenthavecategorizedtheTechnicalTextilesSectorasa focus

areaofinterventionandofferingvariousassistancesasfollows:

1) CreditLinkedCapitalInvestmentSubsidy@15%forinvestmentsoneligible

machineryinTechnicalTextilesunderATUFS;

2) ConcessionalCustomDutyforspeci�icTechnicalTextileMachinery–Major

machinery required for Technical Textiles has been placed in the

concessionalcustomdutylistof5%oflist46,Noti�icationNo.21/2002-CUS

ofCustomsTariff;

3) FocusProductScheme(FPS)forTechnicalTextiles–Toincentivizeexportof

productsthathavehighexportintensityoremploymentpotentialinorderto

offset infrastructure inef�iciencies and other associated costs, exports of

noti�iedproductstoallcountries(includingSEZunits)shallbeentitledfor

DutyCreditScripequivalentto2%ofFOBvalueofexports(infreeforeign

exchange).AsperDGFT'sPolicyCircularNo.42(RE-2010)/2009-14dated

21��October2011,thereare33TechnicalTextileproductsthatareallowed

forFPSbene�itsunderthisscheme;

4) OnparwiththethrustgivenbytheGovernmentofIndiaandtotakeadvantage

oftheuntappedpotentialofthesector,theStateGovernmentwouldcontinue

tosupporttheTechnicalTextilesector;

5) 9%ofProjectCost,subjecttoamaximumceilingofRs.9crorewillbeprovided

asStateGovernmentgrantsforsettingupofTechnicalTextileParksunder

SchemeforIntegratedTextileParks(SITP);

6) 6%InterestsubsidyforTechnicalTextileprojectswillbeprovidedinaddition

toanyotherincentivesavailablefromtheGovernmentofIndia;

7) Overseas study will be conducted to identify potential Technical Textile

marketsandproducts;

8) 100%StampDutyExemptionwillbegivenforTechnicalTextileprojects.


13. TEXTILEPARKS

13.1.Status

Inordertoprovidetheindustrywiththeworld-classinfrastructuralfacilities

tosetuptheirtextileunitsinIndia,theGovernmentofIndiaisimplementingthe

SchemeforIntegratedTextileParks(SITP).Thisschemewouldfacilitatesettingup

ofnewtextileparksofinternationalstandardsatpotentialgrowthcentresonPPP

mode.

EightTextileParkshavebeensetupintheStateunderSITPatthetotalproject

cost of Rs.745.25 crore. In other words, the Government of India is providing

Rs.301.13 crore as Central assistance and the Government of Tamilnadu is

providingRs.58.73croreasStateassistance.TheseParksattract investmentsof

aboutRs.2700croreandannualbusinessturnoverofRs.5311croreperannum,by

generatingdirectandindirectemploymenttoabout67,300persons.


FollowingassistanceswillbeprovidedforsettingupofTextileParks:

1) Financialassistanceupto40%ofthetotalprojectcost,subjecttoaceilingof

Rs.40crorebytheGovernmentofIndiaunderSITP;

2) 9%ofProjectCostasStateSubsidyforTextileParksestablishedunderSITP,

subjecttoamaximumceilingofRs.9crore;

3) TofacilitatetheentrepreneurstoestablishMiniTextileParksintheStateina

minimumextentof2acresoflandand3units,subsidyof50%ofProjectCost,

subjecttoamaximumceilingofRs.2.50croreonthecostofinfrastructureand

commonfacilitieswillbeprovided;

4) 50%StampDutyexemptionwillbegivenforlandacquiredforTextileParks;

5) The State Government will continue to set up Textile Parks and provide

necessary�inancialassistancewherevernecessary.

23


14. STANDARDINCENTIVESFORTEXTILEINDUSTRY

TheGovernmentofTamilnaduhasannouncedtheNewIndustrialPolicyof

theStateinFebruary,2014.

TheStandardIncentivesbeingofferedtoneworexpansionmanufacturing

unitsunderIndustrialPolicyare:

1) Back-endedCapitalSubsidyrangingfromRs.0.30croretoRs.2.25crore;

2) ElectricityTaxexemptionfor2yearsto5yearsonpowerpurchasedfrom

TANGEDCOorgeneratedorconsumedfromCaptivesources;

3) 50%exemptionfromStampDutyonleaseorsaleoflandmeantforindustrial

use;

4) EnvironmentalProtectionInfrastructureSubsidyattherateof25%ofcapital

cost,withaceilingofRs.30lakh.

EmploymentBasedIncentives:

1) Withaviewtoencourageemploymentintensiveindustriestosetuptheir

projectsinTamilnadu,a'Employment-basedpackageofincentivescheme’

isbeingimplemented;

2) Under this scheme, Companies setting up their projects in Chennai,

Thiruvallur and Kancheepuram districts and employing more than

1500 persons directly and in respect of other districts employing

750personsdirectlywillbecoveredunderthispackage;

3) QualifyingprojectsaregivenSoftLoanagainsttheNetOutputVATpaidbythe

projecttotheGovernmentforthe�irst�iveyearsfromthecommencementof

commercialproduction;

4) AceilingoncumulativeavailmentofSoftLoanwillbe�ixedasequaltothe

totalwagespaidbytheprojecttotheemployeesonitsrollduringthe�irst

5yearsperiodfromthedateofcommercialproduction;

5) TheSoftLoancarriesanominalinterestof0.1%perannumanditwillbe

repayableafter7years.Thus,SoftLoangivenduringthe�irstyearshallbe

24


repaidinthe8��yearalongwithinterestandsoon.Thisincentiveiseligible

onlyifthesaleisforultimateuseinTamilnadu;

6) Incase,aprojectquali�iesforanyInvestmentBasedPackageofIncentives

also,asperthispolicy, thechoicewillbe left to the investingcompanyto

chooseeithertheInvestmentBasedPackageorEmploymentBasedPackage.

Thiswouldbeaone-timechoiceandshouldbeexercisedinthebeginning

itself;

7) The Government in deserving cases, for valid reasons, may extend the

investmentperiod;

8) InthecaseofInvestmentPromotionSoftLoan,thecapwillbetheone�ixedfor

therespectivecategories/class.InthecaseofInvestmentPromotionsubsidy,

thecapwillbehalfoftheone�ixedfortherespectivecategory/class.The

project / company may exercise a one-time option for availing either

InvestmentPromotionSoftLoanorsubsidybeforethecommencementofthe

commercialproduction.

Further,theMicro,SmallandMediumIndustriesPolicy2008ofTamilnadu

provideSpecialCapitalSubsidyattherateof15%oneligibleplantandmachinery,

subjecttoamaximumofRs.30lakhtotheReady-madeGarmentssector.

The eligible textile units can also avail the incentives offered under the

TamilnaduIndustrialPolicyandMicro,SmallandMediumIndustriesPolicyinforce

fromtimetotime,withoutanyduplicationof�inancialassistance.

15. SPECIALPACKAGEFORSOUTHERNDISTRICTS

Inordertoachievebalancedregionaldevelopmentwitharenewedemphasis

ontheSouthernDistrictsorBackwardDistrictsoftheState,TextileIndustriessetup

in Kanyakumari, Tirunelveli, Thoothukudi, Virudhunagar, Ramanathapuram,

Sivagangai, Madurai, Theni, Dindigul, Pudukottai, Ariyalur and Perambalur

Districtswillbeeligibleforaspecialpackageasdetailedbelow:

15.1 IncentivesOffered

1) 5%AdditionalCapitalSubsidyfornew/expansionoftextileunitssetupin

southerndistricts;

25

2) 100%StampDutyExemptionforprojectsdevelopedinthesoutherndistricts

withaminimuminvestmentofRs.5croreonmachinery;

3) SIPCOTwillacquireandallotlandsforstartingnewindustriesinsouthern

districtswherelandsinSIPCOTParksarenotavailable.Inordertoachieve

the goal, the minimum area required by the investing company shall be

atleast 25 acres and the investment should be more than Rs.50 crore.

Thelandsrequiredbythecompanyshallbebarren,non-irrigatedanddry

landtotheextentpossible.Landrequirementwithmorethan10%wetlands

willnotbeentertained;

4) Uninterrupted power supply will be given to the projects set up in the

southern districts if they are covered by MoU or Government Order

(non-MoU).

16. SKILLDEVELOPMENT

Apartfromprovidingassistanceforcreationofinfrastructuralfacilitiesand

settingupoftextileunits,makingavailableskilledmanpowertotheindustry

andtoupgradetheskillsetsof theexistingworkforcebywayof training,

retrainingandupgradingarealso

equally important for the holistic

development of the industry.

Besides,bridgingthegapbetween

theskillsetrequirementsandthe

u n - s k i l l e d / s em i - s k i l l e d

workforce, the Government will

provide better institutional and

industrial linkages to all the

sectorsofthetextileindustry.

1) Thrustwillbegivenforcreatingaskilledandbalancedworkforcetoenable

womentoenhancetheiremployability;

2) Inviewoftheperspectivetomakegoodthelossduetohumanerrorsinthe

KnitwearIndustry,assistancewillbeprovidedtoimpartUpskillingTraining

totheexistingun-skilled/semi-skilledlabourforce;



3) The Tamilnadu Skill Development Mission implemented through the

Tamilnadu Skill Development Corporation (TNSDC), for providing skill

trainingthroughdifferentdepartments;

4) TNSDChas identi�iedTextilesasoneof thepriority sectors,whereinskill

training programmes cater to the immediate skill requirements of the

industriesandalsopavethewayfortheentryoflargeunemployedyouthinto

theorganisedsector;

5) Skill development training in the textile industry will be provided to

unemployedandsemi-skilledpersonsthroughTNSDCandIntegratedSkill

DevelopmentSchemeoftheMinistryofTextiles,GovernmentofIndia;

6) The Government will take the lead in partnering with the industry in

developingacurriculumfortheIndustrialTrainingInstitutestomaketheir

graduatesindustry-ready;

7) TechnicalInstitutesandPolytechnicswillbeincentivisedtoalignthemselves

withtheindustryneedsandorganiseskilldevelopmentprogrammesjointly

toimprovetheemployabilityoftheirstudents.

17. SINGLEWINDOWCLEARANCE

1) To avoid procedural delays in getting statutory clearances from various

authorities,SingleWindowClearancewillbeprovidedtoaccordin-principle

approvalforpre-projectclearanceattheStateGovernmentlevel;

2) The Government of Tamilnadu have enacted the Tamilnadu Business

Facilitation Act and Rules, 2017 and noti�ied the Tamilnadu Industrial

GuidanceandExportPromotionBureauastheStateNodalAgencyatState

levelandDistrictIndustryCentre(DICs)atDistrictlevelAgency;

3) The services covered under Single Window Clearance are according

Pre-Establishmentclearances,Pre-Operationclearanceswhicharerequired

priortoestablishmentofanEnterprise,RenewalsofClearances,Incentives

foreligibleEnterprisesandotherrequiredclearancesforanenterprise;

27


4) InordertoavailtheservicesthroughSingleWindowPortal,theenterprises

shallpaythefeespayabletotheindividualCompetentAuthoritiesinrespect

oftheirclearances,asstipulatedintheirrespectiveActs/Rules/Forms/

Noti�ications. And also the processing fee per application payable to the

NodalAgencyundertheAct;

5) ThefeespayabletotheStateNodalAgency,namely,theTamilnaduIndustrial

GuidanceandExportPromotionBureau,asnoti�iedbytheGovernmentof

Tamilnaduand in force,ranges fromRs.3 lakhtoRs.20 lakhbasedonthe

investmentlimitsofprojectsrangingfromRs.10croretoRs.1000crore;

6) The Government of Tamilnadu have also constituted the following

CommitteesundertheTamilnaduBusinessFacilitationOrdinance,2017:

- State Single Window Committee (SSWC) with the Executive Vice

Chairperson,GuidanceBureauastheChairman;

- StateSingleWindowMonitoringCommittee(SSWMC)withtheChief

SecretarytoGovernmentastheChairman;

7) InvestmentPromotionandMonitoringBoardwiththeHon'bleChiefMinister

astheChairmanhasalsobeenconstituted;

8) TheTextileSectorshallavailtheSingleWindowServicesthroughtheState

Level/DistrictLevelBusinessFacilitationCentresfortextileprojects.

18. STATETEXTILEADVISORYCOMMITTEE

1) To facilitate the Textile Industry in Tamilnadu to sustain and further

strengthenitsprominentpositioninthetextilesector,aStateTextileAdvisory

CommitteeheadedbytheHon'bleMinisterforHandloomsandTextileswith

representativesfromallthesubsectorsofthetextilevaluechaini.e.,Weaving

(Handloom & Power loom), Spinning, Processing, Knitting, Garmenting,

TextileMachineryManufacturing,GovernmentInstitutionsetc.,asmembers

hasbeenconstituted;

2) Asub-committeeundertheChairmanshipoftheDirectorofHandloomsand

TextileshasbeenconstitutedtoassisttheStateTextileAdvisoryCommittee;

28


3) TheStateTextileAdvisoryCommittee,asanAdvisoryBody for the textile

industry will meet once in every 3 months or whenever necessary and

apprisetheissuesoftheStateTextilesIndustryandenableholisticgrowth

anddevelopment.

19. SUPPORTINGINFRASTRUCTURE

19.1.Energy/Water/EnvironmentalCompliance

1) The scheme will be known as One Time Assistance for Energy, Water

conservationandEnvironmentalcompliancewiththeexistingTextileunitsin

operationformorethanthreeyears;

2) Assistanceupto50%,subjecttoamaximumceilingofRs.50,000/-forEnergy

Audit/WaterAudit/EnvironmentalCompliance,applicableoncasetocase

basiswillbeprovided;

3) Assistanceupto20%of costofequipment required forenergyandwater

conservation,subjecttoamaximumofRs.10lakh,applicableoncasetocase

basiswillbegiven;

19.2.AssistanceForTechnologyAcquisition,Upgradation&Innovation

1) Realizing that technology is a key element contributing to productivity,

quality, competitiveness and market acceptability of products and that

29


technologyandbusinessincubatorshaveemergedasusefulinstrumentsfor

innovation, the Government will encourage development of “Centres of

Excellenceand Innovation,” incollaborationwithacademic institutionsof

excellence,industryandtheGovernmentofIndia;

2) The scheme will be known as Assistance to Enterprises for Technology

Acquisition,UpgradationandInnovation;

3) The enterprises acquiring the technology will be provided �inancial

assistance of upto 25% of the investment for technology acquisition /

collaboration, subject to a maximum ceiling of Rs.25 lakh per process /

productonceduringthecurrencyofthepolicyperiod.

EligibleActivities

a) Theenterprisesacquiringnewtechnologyforspecializedapplication

willbeeligibleunderthescheme;

b) Theacquisitionof technologyandcollaborationcanbe inany form,

including purchase of drawing and design and technology

development through engaging experts / R&D institution and / or

technicalconsultancy�irmandnecessaryTestingandCerti�ication.

19.3.LabourQuarters/WorkersHostel

Assistanceof50%oftheprojectcostforconstructionofLabourQuarters/

WorkersHostelwill be provided, if encumbrance free land ismobilized by the

Cluster/TextileParkSPVs.

19.4.ESIFacility

FinancialassistancewillbeprovidedforcreatingESIfacilitiesinKnitwear

ClustersandotherTextileClusters.

20. LABOURSECTORINITIATIVES

Departmentwillendeavourto liaisewithLabourDepartment inresolving

labourissuesoftextilevaluechainwithintheframeworkofexistinglaw.

30


21. GOODSANDSERVICESTAX(GST)

1) The Government of India have

introducedtheGoodsandServices

Tax(GST)as“OneNationOneTax”

witheffectfrom01.07.2017;

2) The S t a te Tex t i l e Adv i sory

CommitteeandtheGovernmentof

Tamilnadu will take continuous

efforttogetthebestoutofGSTfor

theTextileIndustry.

22. EXPORTS

Tamilnadu is a major exporter of a variety of manufactured goods like

automobiles,autocomponents,Engineeringgoods,TextilesandGarments,

Leatherproducts,ElectronicHardware,Chemicals,etc.,apartfromsoftware

andSupportservices.Tamilnadu'sexportsstoodatavalueof16.2billion

US dollars during 2016-2017, of which, more than Rs.50,000 crore is

contributed by Textile Industry. Tamilnadu is the home to the knitting

industry and has the biggest knitting cluster in India – Tiruppur, which

exportsmorethanRs.25,000croreofknitwearandgarments.

31

ONE TAXATION ONE TAX



1) AdetailedstudyonnewandemergingproductswillbeconductedonPPP

modelon75:25fundingpattern,withthesupportoforganisationslikeFIEO,

which can be produced and exported from Tamilnadu with competitive

pricing;

2) Exportproductsanditsmarketswillbeidenti�ieddistrict-wise,product-wise

encouragements/incentives,adequateinfrastructurewillbedevisedtosee

thesepotentialdistrictsarerecognizedforexcellingatleastinoneproduct

group;

3) Productspeci�icIndustrialClusterswillbepromotedandnecessarysupport

willbeprovidedbytheStateGovernmenttopromotethemas‘ExportClusters’;

4) Encourageexporterstoexportbrandedproductsthroughpromoting“Brand

Tamilnadu”;

5) SelectedtownsproducinggoodsofRs.200croreormorewillbenoti�iedas

“TownsofExportsExcellence”basedonpotentialforgrowthinexports;

6) InternationalFaironFibretoFashionofTextileIndustrywillbeconductedat

CODISSIA, Coimbatore once in two years, with a �inancial assistance of

Rs.2.00crore;

7) An Export promotion Fund will be created to improve export related

infrastructure and for programmes and schemes to promote exports in

textiletowns/clustersofexportexcellence;

8) Sectorspeci�icsupportwillbeprovidedtoaugmentexportstoemergingand

potentialsector.

23. FOREIGNDIRECTINVESTMENTS(FDI)

With themost liberal and transparent policies in FDI amongst emerging

countries,IndiaisapromisingdestinationforFDIintheTextileIndustry.Withan

aimtoattracthugeFDI intextilesector, theGovernmentof India isofferingthe

followingassistances:

1) ForeignDirectInvestmentPolicyinTextiles–100%FDIispermittedthrough

automatic route without any

limit on the extent of foreign

ownersh ip for in -bound

investments in the textile

sector. Thus, there is no

restriction on any amount of

FDI, with or without local

p a r t n e r s . G o v e r nm e n t

i n c e n t i v e s a r e e q u a l l y

applicabletoFDIunits;

2) With themost liberal and transparent policies in FDI amongst emerging

countries,IndiaisapromisingdestinationforFDIinthetextilesector.FDIin

sectorstotheextentpermittedunderautomaticroutedoesnotrequireany

priorapprovaleitherbytheGovernmentofIndiaorReserveBankofIndia

(RBI).InvestorsarerequiredonlytonotifytheRBIRegionalOf�icewithin30

daysofreceiptofinwardremittance;

3) TheMinistryof Textiles,GovernmentofIndiahassetupFDICelltoattract

FDI in the textile sector in the country. The FDI cell operates with the

followingobjectives:

a) To provide assistance and advisory support (including liaisonwith

otherorganizationsandStateGovernments);

b) Assistforeigncompaniesin�indingoutjointventurepartners;

c) Tosortoutoperationalproblems;

d) Maintenance andmonitoring of data pertaining to domestic textile

productionandforeigninvestment.



Handlooms,Handicrafts,Textiles&KhadiDepartment

GOVERNMENTOFTAMILNADUSecretariat,FortSt.George,Chennai–600009.

Tel.:+914425671623Fax:+914425672261E-mail:[email protected]

tamilnadu new integrated textile policy 2019 · terms, 2% of india's gdp and to 15% of...

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