• Posted on: 28 February 2016
  • By: admin

Maharashtra Textile Policy

 

The object of the policy

a) Lay special emphasis on raising processing units at various levels from cotton to manufacturing textiles for the

assured long term development on priority basis in the cotton producing sector. 

b)  to attract a total investment of Rs. 40,000 Crores in the sector for the purpose of adding value to 45 lakh surplus cotton bales produced in the State.

c) to create 11 lakh new jobes in the State in next five years. 


Cooperative Spinning Mills

New cooperative spinning mills in Vidarbha/Marathwada and North Maharashtra will be given equity support as per the existing financial pattern [(5 : 45 : 50) (Own Share Capital : Government Share Capital : Loan)] New Cooperative Spinning Mills in Talukas where government has already given equity support for setting up of Cooperative Spinning Mills shall not be eligible for the assistance as per 5 : 45 : 50 pattern.


Powerlooms/Warping/Weaving/Sizing/Dyeing/Printing/Garmenting/ Knitting Units etc

subsidies to projects of cooperative societies of shuttle less powerlooms /warping /sizing /yarn dyeing/dyeing /processing / garmenting etc. as per the present financial pattern (10 : 40 : 50)


Subsidies to the cooperative powerlooms units/bodies of Scheduled Castes, Tribes and Minority Communities according to the following pattern viz. own

share capital, Government Share Capital and Loan 5:45:50 


Assistance in the form of success fee to professional agencies for the preparation, submission and sanction of modernization project from the banks and

financial institutions for existing powerloom of S.C./S.T./Minorities.


10% capital subsidy of the capital investment on Loan sanctioned by Bank’s, for modernization of powerloom units of Scheduled Castes, Scheduled Tribes and

Minorities.


Scheme of interest subsidy on long-term loans linked to centrally sponsored TUF Scheme

Interest subsidy on long term loan linked to centrally sponsored TUFS will be started for New Textile project as well as modernization/expansion/rehabilitation project of existing textile units. 

 

Interest subsidy for Textile Park


10% capital subsidy to units in Vidarbha, Marathwada and North Maharashtra

10% capital subsidy scheme will be started for new textile project in Vidarbha, Marathwada and North Maharashtra.


Financial assistance for setting up of textile parks under the special component scheme and Tribal Development Sub Plan for the Districts having lower human development index.


Skill Development Programme with the help of the Higher and Technical Education Department


“Gharkul”[housing] scheme, health insurance scheme, worker’s welfare scheme etc. for powerloom workers in the

textile sector.


To review and modity various regulatory provisions of labour and environmental laws, which adversely affect growth of textile sector.


Scheme for interest subsidy on long-term loans to textile projects / units set up in Maharashtra during 2011-17 linked with Centrally

Sponsored TUF Scheme

1] Scheme of interest subsidy on long-term loans linked to the Centrally sponsored TUF scheme. :-

Aplicable rate of interest.either 12.5% or Banks’ prime lending rate or the rate

of interest actually charged, whichever rate is less

Newly set up textile units in the State as well as modernization/ expansion/ rehabilitation of existing textile units.

Financial assistance effective rate of interest payable by the eligible units will be 0% or 2%.

0% and 2% rate of interest:

0%: All eligible textile units in Vidarbha, Marathwada, North Maharashtra, Konkan and D+ Industrial Areas, New Powerloom Industries based on modern technology in the whole State.

Modernization of Powerlooms- entire state, All types of silk projects in the entire State and All eligible textile units in the cooperative sector.

2%: Private cotton mills in areas other than Vidarbha, Marathwada, North Maharashtra, Konkan and D+ Industrial Areas,Private Processing Units, Private Knitting units and All other textile

units.


Projects eligible for interest subsidy scheme

Projects sanctioned on or after the date 1.4.2011 under the Centrally sponsored TUFS (UID numbers from the Textile Commissioner, Government of India)

but excluding the jute industry.

Textile units set up in the State of Maharashtra.

Duration of the Scheme: 1.4.2011 to 31.3.2017


After the interest subsidy becomes admissible under the Centrally sponsored TUFS

scheme. If, for some reasons, a unit delays repayment of an installment, the interest charged by the institutions for the period of delay,

and the penal interest will not be reimbursed.

 

Period of reimbursement of interest subsidy : 7 years, (2 years of moratorium)


[12.5% is the maximum rate of interest permissible. As regards the quarterly period for which the proposal of interest subsidy is received, either

the interest actually charged or the prime lending rate fixed by Banks for that quarter or 12.5%, whichever rate is less, should be considered.]


10% capital subsidy to new textile Unit in Marathwada, Vidarbha and North Maharashtra under the Textile Policy for 2011-2017


10% capital subsidy of the eligible capital investment will be given to new textile units set up in Vidarbha, Marathwada and North Maharashtra.

“Eligible capital investment” means an investment which is eligible for interest subsidy under centrally sponsored TUF scheme.

Original project cost eligible for interest subsidy under the Centrally sponsored TUF Scheme only shall be considered. The benefit of 10% capital

subsidy will not be admissible to any increase in the original project cost.


The said 10% capital subsidy shall be in addition to all the benefits available from all sources [i.e. Centrally sponsored TUFS, Industries Department’s policy etc.] including the assistance in respect of interest subsidy available under the new Textile Policy of the State. 


Projects eligible for 10% Capital Subsidy Scheme

Project of Marathawada, Vidharbha & North Maharashtra sanctioned and set up under the Centrally sponsored TUF scheme within the period of the issuing date.

“Projects sanctioned under the Centrally sponsored TUF scheme” means projects approved by the nodal financing institutions/banks, or other co-opt. Banks/ Institutions under the Centrally sponsored TUF scheme and have obtained UID number from the Commissioner of Textile, Ministry of Textiles, Government of India.


The 10% capital subsidy scheme will not be applicable to projects of modernization/expansion of existing textile units.


Nodal Agencies

The nodal agencies as defined under Central TUF Scheme, shall submit subsidy proposal directly to the Director (Textile). The coopted

Institutions / Banks will submit subsidy proposal through their nodal agencies to the Director (Textile). Director (Textile) will submit proposals to the State Government for release of funds.

 


10% Capital subsidy scheme for modernization of existing powerloom units belongs to Scheduled Castes/Tribe and minority

communities under the Textile Policy 2011-2017

10% capital subsidy of the eligible long term loan will be given to the project of modernization of existing powerloom units belonging to scheduled castes/scheduled

 

tribes and minority communities which fulfill the criteria mentioned.


Project eligible for 10% capital subsidy

[a] Projects of Scheduled Castes:-

[i] Projects of Scheduled Castes on private or co-operative basis.

[ii] If it is a private project, at least 80% of the shares in the project should be held by members of scheduled castes.

[iii] If the project is on co-operative basis, at least 80% of the members in the cooperative society should belong to the schedule castes


[b] Projects of Scheduled Tribes:-

[i] Projects of Scheduled Tribes on private or co-operative basis.

[ii] If it is a private, at least 80% of the shares in the project, should be held by members of Scheduled Tribes.

[iii] If the project is on co-operative basis, at least 80% of the members in the cooperative society should belong to the scheduled tribes.


[c] Projects of Minorities:-

[i] Projects of minority communities on private or co-operative basis.

[ii] If it is a private projects, at least 80 % of the shares in the project should be held by members of minority communities.

[iii] If a project is on co-operative basis at least 80% of the members in the cooperative

society should belong to the minority communities.


Assistance will be available in either (a) or (b) or (c) only.


Duration: Till 31.03.2017.


Admissibility of 10% capital subsidy: After a project of modernisation of powerloom unit is completed and the units comes

under production.


Project cost:-

(a) There will be no ceiling on investment in a project. However, 10% capital subsidy will be payable on the amount of long term loan admissible for the purpose of the interest subsidy under the centrally sponsored TUFS.

(b) The said subsidy shall be within the limit of the permissible loan in the cost of the original project which is eligible for interest reimbursement under the centrally sponsored

TUFS.


Nodal Banks/Financial Institutions/Co-opted Financial Institutions giving Loan:-

a] In Government of India’s TUF scheme number of Financial institutions and Banks have been designated as Nodal agencies. These nodal agencies have co-opted other Financial Institutions and Banks for implementing the TUF scheme. They are also allowed to co-opt other financial institutions and Banks. On similar lines these agencies and co-opted Banks and Institutions will work under the State sponsored scheme. 


The nodal agencies shall submit subsidy proposal directly to the Director, Textile, Government of Maharashtra.

The coopted Institutions / Banks will submit subsidy proposal through their nodal agencies to the Director, Textile, Government of Maharashtra.