New policy will attract investment in textile sector: Entrepreneurs

 

 

Welcoming the recently announced Maharashtra Integrated and Sustainable Textile Policy 2023-28, industry bodies and entrepreneurs of the region called it a forward looking document and said, it would attract investment in the textile sector in the cotton-rich Vidarbha region. The industry leaders also felt that the new policy would strengthen the entire textile value chain including cotton, wool, silk, handloom, technical textile, non-convention yarn and synthetic yarn. The Vidarbha Industries Association (VIA) expressed satisfaction over the aim of the policy to increase the processing capacity of cotton from existing 30 per cent to 80 per cent in the next 5 years. Vice-President of VIA Prashant Mohata said, the policy promotes sustainable production through non-conventional power sources (particularly solar). “It is a good step which will give respite to a large number of units in the region. In addition to this, the subsidy offered to textile units of the region would also give encouragement to the entrepreneurs,” he said. Vineet Mohata of VIA Textile Forum said that the policy would strengthen the supply chain management of the textile sector. However, he also felt that the capping of 4MW for solar power has no logical reasons. The capping should have been related to production or employment generation. “The capping is not favourable for mega units. In fact the Government should have encouraged the units to get more capacity of solar power,” he said. Vineet Mohata expressed satisfaction over the Government’s step of removing a cap of 1 MW on net metering for the textile sector. The entrepreneurs would expect effective implementation of the policy and timely release of funds, Vineet Mohata added.

 

Naveen Rander of VIA’s Textile Forum, said, the new policy will bring in more transparency in the sector. The Maharashtra Government recently approved a new textile policy for a period of next five years with an aim of attracting investment of Rs 25,000 crore in the textile sector. The Integrated and Sustainable Textile Policy for a period of 5 years also aims at increasing cotton processing capacity from existing 30 per cent to 80 per cent in next 5 years (2023-28) and creating up to 5 lakh jobs. The new policy is in line with the 5F vision of the Government of India - Farm to Fiber to Factory to Fashion to Foreign. The policy envisions integrating the whole textile value chain and creating an enabling environment for sustained growth of all sub-sectors in the industry. It will strengthen the supply chain management of the textile sector and effectively disseminate information to all the stakeholders on ground to make them aware about the provisions and incentives in the policy. The Government will encourage sector-wide collaborations to accelerate a just transition towards a sustainable textile value chain through the 3-R model viz Reduce, Reuse and Recycle. Apart from increasing the processing capacity of cotton, the policy will also promote state-of-the-art infrastructure and technological upgradation to promote textile value chain in the State. Further, the Government is looking forward to developing six Technical Textile Parks in the State by encouraging private investment. Besides, Maharashtra Technical Textile Mission will be taken up to ensure aggressive growth of the technical textile sector. The technical textile sector is undergoing a paradigm shift in technology, leading to faster and more efficient systems. To promote research and development in these emerging technologies, a fund of Rs 50 crore will be earmarked every year.

 

The Government will provide additional financial incentives to promote women empowerment and bring gender balancing in the textile industry by encouraging participation of women at all levels of management in the textile industry. The Government has decided to merge existing three corporations (Maharashtra State Textiles Corporation, Maharashtra State Powerloom Corporation and Maharashtra State Handloom Corporation) to create Maharashtra State Textile Development Corporation (MSTDC) for creating a sustainable and fertile environment for the growth of the textile industry in the State. It will also create the Maharashtra Technical Textile Mission for promotion of the technical textile sector. The new policy emphasises adoption of green technologies for environment-friendly and sustainable production. Projects such as Effluent Treatment Plants ( ETP) – up to Rs 5 crore, Zero Liquid Discharge ( ZLD) – up to Rs 10 crore, common steam generation plants – up to Rs 1 crore and recycling projects have been encouraged by providing 50 per cent capital subsidy to textile units.