The new policy focuses on garments, made-ups and other technical textile activities and is aimed at raising investments in the sector and strengthen the textile value chain across each sub-sector.

Weaving (with or without preparatory), knitting, dyeing and processing, texturising, twisting, man-made fibre spinning to manufacturing yarn from polyester staple fibre or viscose staple fibre (excluding spinning activity of cotton and synthetic filament yarn), and embroidery are included as another activity under this policy.

Capital subsidies will be offered at 10-35 per cent of the eligible fixed capital investment (EFCI), i.e., investments in fixed assets that qualify for tax benefits under government schemes. The maximum subsidy will be up to ₹1 billion.

Credit-linked interest subsidy will also be offered at 5-7 per cent of the EFCI for five to eight years.

Payroll assistance ranging from ₹5,000 to ₹3,000 per female worker and ₹3,000 to ₹2,000 per male worker per month will be offered. Payroll assistance of up to ₹5,000 per month, and up to 25 per cent of job work value turnover will be offered per member for five years.

Training assistance worth ₹5,000 per month per member for three months will also be offered.

A power tariff subsidy will be offered at ₹1/kWh. Units availing power either from distribution companies or renewable power through open access for a period of five years from the date of commencement of production are to be eligible.

Textile units will be provided assistance for quality certification, reducing energy and water consumption, and technology acquisition.

The policy also focusses on reducing carbon footprint and promoting green growth.

Fibre2Fashion News Desk (DS)