The Hindu Business Line : AP Cabinet clears Textile Policy

THE Andhra Pradesh Cabinet on Wednesday approved the new Textile Policy for the first time in the history of the State. This move aims to provide a major fillip to the cotton growers, weavers and the textile and apparel industry.

According to the State Information Minister, Mr Shabbir Ali, the policy is primarily aimed at providing sustainable employment to weavers and workers in handloom, powerloom, textile and apparel sector. It also aims at making available quality fabric at affordable price to meet the requirements of both domestic and international markets, he told newspersons.

According to him, the new textile and apparel promotion policy offers benefits in addition to those being offered by the State Government through the new Industrial Investment and Promotion Policy 2005-2010. In terms of the policy, all the garments units would be allowed a special incentive of power tariff concession at 25 paise per unit in addition to the power tariff concession of 75 paise per unit already provided under the new Industrial Policy, thus, bringing down the power tariff to the international level, the Minister said.

Further, he said the new textile policy permits all the major textile and apparel units to produce captive power by utilising natural gas by 2008.

The new textile policy provides flexible and conducive labour environment by implementing labour reforms. The AP Contract Labour Act would be made applicable to apparel and textile industry.

With an objective of providing employment to at least 15-lakh persons by 2010, the Government has decided to offer an incentive of Rs 5,000 per employee to the employer towards cost of training of garmenting, weaving, knitting and processing.

As a part of the new policy, the Government would acquire land on the applications of special purpose vehicles (SPVs) for setting up of Integrated Textile Parks wherever required. The Government would provide necessary assistance for power, water and other utilities to the Integrated Textile Parks.

According to the Minister, the policy provides a special package of incentives of mega projects, which would create employment for more than 2,500 people or invests an amount of Rs 100 crore and above.

Aimed at providing smooth movement of containers of machinery, raw materials and finished product, infrastructure in the Textile Parks including connecting links to Highways by four-line roads would be undertaken by the Government, the Minister said.

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