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At a time when industries are holding back their investment, the textile industry in Maharashtra is swimming against the tide.
In the last four months, Maharashtra has managed attract several small investments aggregating Rs 2,101 crore in 218 textile projects.
These investments have come under the new State textile policy. The approvals for new textile projects are being fast-tracked under the new policy.
The policy had come into effect in April and most of the investments are for setting up new weaving, power loom, cotton spinning, and ginning units.
A senior Maharashtra Government official said these projects have managed to get funding from the banks and have achieved financial closure.
In the coming three years, the investment (Rs 2,101 crore) will create employment for about 16,000 persons in the State.
The projects need only to get their cleareance by banks under the Centre’s Technology Upgradation Fund Scheme (TUFS). Once banks approve the project, the State Government approval is automatic, the official said.
TUFS approval process is robust. All technical and financial aspects are properly examined before banks give final clearance, the official said.
Interest subsidy and capital subsidy for projects coming up in Vidarbha, Marathwada and Northern Maharashtra, are the attracting a number of companies under the new policy, the official said.
Interest subsidy
Interest subsidy is offered for seven years. The subsidy works out to five per cent of the interest cost. On the total capital investment, the State Government provides 10 per cent capital subsidy.
When contacted, Maharashtra’s Textile Secretary, Mr Sunil Porwal, said the policy was getting a positive response from the textile industry. By the end of the current fiscal about Rs 10,000 crore investment and 1,000 new projects are expected in the State.
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