From Our Special Correspondent
Daijiworld Media Network
Bengaluru, Nov 1: A new textiles and garment policy for the year 2019-24 for attracting investment of Rs 10,000 crore and generating five lakh jobs during the five-year period has been approved by the State Cabinet.
The State Cabinet presided over by Chief Minister B S Yediyurappa on Thursday approved the policy that would provide a stimulus to the textile industry to retain Karnataka as the garment capital of India and achieve higher and sustainable growth in the entire textile value chain.
The budget outlay required for execution of the policy estimated at Rs1582.17 crore during the next five years.
The amount would be utilized for providing capital subsidy, interest subsidy, power subsidy, wage subsidy, skill development support, stamp duty reimbursement, ESI and EPF subsidy and infrastructure development.
The new policy envisages capital subsidy to modernize the spinning mills with latest spindle technologies to achieve lower energy production; encourage units to use non-conventional sources of power by providing concessional rates; and skill development support to develop need-based skills for spinning.
The new policy set out specific interventions for the handloom sector and they included: develop and extensive strategy to increase the share of handloom exports to distinct international markets.
There are 1.20 lac looms engaged in weaving of silk and cotton.
The new policy has created four zones and they are:
- Hyderabad-Karnataka region (zone 1);
- All areas other than municipal corporations, district headquarters in non H-K region (zone-2),
- All municipal corporations, district headquarters in non H-K region (zone-3), and
- Bengaluru Urban and Bengaluru Rural districts (zone 4)