tamilnadu new integrated textile policy 2019
TRANSCRIPT
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
8.2 IncentivesOffered 9
9. POWERLOOM 12
9.1 Status 12
9.2 IncentivesOffered 13
10. PROCESSING 16
10.1 Status 16
10.2 IncentivesOffered 18
11. KNITTING&GARMENTING 19
11.1 Status 19
11.2 IncentivesOffered 20
12. TECHNICALTEXTILES 21
12.1 Status 21
12.2 IncentivesOffered 22
13. TEXTILEPARKS 23
13.1 Status 23
13.2 IncentivesOffered 23
14. STANDARDINCENTIVESFORTEXTILEINDUSTRY 24
15. SPECIALPACKAGEFORSOUTHERNDISTRICTS 25
15.1 IncentivesOffered 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
22.1 IncentivesOffered 32
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.
2
TamilnaduNewIntegratedTextilePolicy2019 3
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.
TamilnaduNewIntegratedTextilePolicy20194
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;
TamilnaduNewIntegratedTextilePolicy2019 5
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;
TamilnaduNewIntegratedTextilePolicy2019
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
6
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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.
8.2. IncentivesOffered
Thefollowingfacilitieswillbeextendedtohandloomsector:
1) ProductionofSareesandDhotiesunderCostFreeDistributionofSareesand
Dhoties Scheme and production of Uniforms Cloth Varieties under Free
SupplyofUniformstoSchoolChildren,toprovidecontinuousemploymentto
9
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
InTamilnadu,PowerloomsaremainlyconcentratedinthedistrictsofSalem,
Namakkal,Erode,Tiruppur,Coimbatore,Karur,Madurai,Tirunelveli,Virudhunagar
andThiruvallur.Thissectorrequiresmodernizationandtechnologicalupgradation
tocopeupwiththecut-throatcompetitioninthedomesticandoverseasmarket.
Governmentwilltakeallstepstoencouragethepowerloomsectortomodernize
and�illthegapsinthesector.
9.2. IncentivesOffered
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy201916
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
10.2. IncentivesOffered
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
11.2. IncentivesOffered
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy201922
12.2. IncentivesOffered
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.
TamilnaduNewIntegratedTextilePolicy2019
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.
13.2. IncentivesOffered
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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;
TamilnaduNewIntegratedTextilePolicy201926
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy2019
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
TamilnaduNewIntegratedTextilePolicy201932
22.1. IncentivesOffered
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.
TamilnaduNewIntegratedTextilePolicy2019 33
TamilnaduNewIntegratedTextilePolicy2019
Handlooms,Handicrafts,Textiles&KhadiDepartment
GOVERNMENTOFTAMILNADUSecretariat,FortSt.George,Chennai–600009.
Tel.:+914425671623Fax:+914425672261E-mail:[email protected]