As a major step to draw more investments in the textile sector of the state, Madhya Pradesh government has announced a special concessions package for textile projects involving a minimum investment of Rs. 250 million.
As reported in Times of India, the Cabinet led by Chief Minister Shivraj Singh Chouhan nodded on providing an interest subsidy of five percent for five years to textile mills focusing on fabric manufacturing, and a subsidy of seven percent to composite textile mills projects with a consolidated production network right from processing cotton, spinning, weaving to production of finished apparels.
Minister for Industries and Commerce Kailash Vijayavargiya informed that under the Industrial Investment Promotion Scheme, ginning mills would be given an amount equal to the amount paid by them as VAT or central sales tax on inter-state sale of finished goods.
Likewise, fabric producing units would get assistance equal to VAT paid while buying raw inputs, and VAT and central sales tax paid on sale of finished goods.
The Minister said that over the past three years, the textile industry of the state has drawn investments worth Rs. 70 billion, which has created 20,000 new employment opportunities. He added that they aim to push this investment level to Rs. 200 billion.
He said that presently around 70 percent of the raw cotton manufactured in the state is transported to other states. If more textile mills are set up in the state, it would relieve farmers of finding buyers in other states like Gujarat or Maharashtra.
The sops would make Madhya Pradesh a more preferred destination for textile entrepreneurs than Gujarat or Maharashtra, government spokesperson Narottam Mishra said.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=119293
