Uttar Pradesh government has approved a new textile and garmenting policy that is likely to create 5 lakh new employment directly and indirectly.
The policy approved by the Uttar Pradesh cabinet with an aim to make Uttar Pradesh a textile hub, will ensure development of all units through handholding and attracting private investment in this sector. While approving the Uttar Pradesh Textile and Garmenting Policy-2022 the cabinet authorized the chief minister to make any kind of amendment in it.
The policy is aimed to ensure sustainable development of all sectors of textiles including hand looms, power looms, spinning, weaving, processing, and garmenting. The policy makers hope this would bring the state’s textile industry at par with its global peers.
The policy is expected to attract private investment of Rs 10,000 crore in the textile and apparel sector, and will create employment opportunities for five lakh people. The investment would be used to develop five textile and garment parks in the private sector. It will also increase the income of handloom and power loom weavers.
Parliamentary Affairs Minister Suresh Khanna while announcing the policy said that in the Uttar Pradesh Textile and Garmenting Policy-2022, there was a provision to provide special incentives with financial facilities in various items to the units investing in the textile sector, for the purpose of generating employment by attracting investment.
“This policy will be effective for five years from the date of promulgation. This policy will increase investment in the state and is likely to generate three lakh employment opportunities,” he said. Salient features of the policy include 25 percent capital subsidy to textile and garments units on purchase of plants and machinery. Additionally, the capital subsidy will be reimbursed at the rate of 5 per cent to textile and garments units to be set up in Madhyanchal region of the state and at the rate of 10 per cent to textile and garments units to be set up in Purvanchal and Bundelkhand. The cap of subsidy is limited to Rs100 crore.
