Karnataka Invested RS. 13 Billion Under Various Schemes During The Current Financial Year

The Government of Karnataka, a state in southern India, through the Department of Handloom and Textiles, has invested Rs. 13 billion under various schemes during the current financial year, reports The Hindu.

Addressing a one-day workshop on the government’s new textile policy in Gulbarga city, DA Venkatesh, Commissioner for Department of Handloom and Textiles, said the Department has spent Rs. 13 billion for establishing textile parks, modernizing existing units of textile and handloom industries and for supporting micro, small and medium enterprises during the ongoing financial year.

Under its textile policy for training skilled manpower, the government has set up 154 Skill Development Centres, Mr. Venkatesh informed the trainees and entrepreneurs at the workshop, and urged them to take benefit of the opportunities provided by the new textile policy and create more employment opportunities in the state.

Owing the new textile policy 2013-18, about 500,000 skilled trainees got jobs in 4,500 garment units spread across the state, Mr. Venkatesh said, and added that in the last two years, around 700 new textile industries have been set up in the state.

The handloom and textiles industry is playing a significant role in halting migration of skilled people from the state by providing them with direct employment opportunities, according to Mr. Venkatesh.

The textile sector is the second largest employment provider to the rural people, next only to agriculture, he said.

The new textile policy, which replaced the Suvarna Vastra Neeti (2008-13) policy, aims at making Karnataka a preferred textile destination. The new policy provides interest subsidy for projects costing up to Rs. 990 million, as part of the amount sanctioned for credit-linked capital subsidy, for small and medium investors.

For units investing Rs. 100 million to Rs. 990 million, the credit-linked capital subsidy is in the range of 15 percent to 20 percent with an upper limit of Rs. 60 million. For micro, small and medium enterprises (MSMEs) with investment up to Rs. 100 million, the credit-linked subsidy is in the range of 15 percent to 20 percent, but with a ceiling of Rs. 20 million.

In addition, a subsidy of 15 percent to 20 percent with upper ceiling of Rs. 10 million is provided for modernization of existing units, while cooperative spinning mills are given a subsidy of 20 percent with upper limit of Rs. 20 million for revival and upgradation.