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Capital-Investment-Subsidy-Scheme-A-Boost-for-Textile-Units

Indiau2019s textile industry plays a critical role in the countryu2019s economy, employment, and exports. To promote modernization and global competitiveness, the Government of India and various states have introduced the Capital Investment Subsidy for Textile Units Scheme.

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Capital-Investment-Subsidy-Scheme-A-Boost-for-Textile-Units

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  1. Capital Investment Subsidy Scheme: A Boost for Textile Units Unlocking Growth and Modernisation in India's Textile Industry

  2. Why India's Textile Sector Needs Capital Investment Subsidy 1 2 3 Economic Pillar Overcoming Hurdles Modernisation Imperative India's textile industry is a major economic driver, offering vast employment and significant export potential. The sector faces challenges from outdated machinery, high production costs, and intense global competition. Subsidies are crucial for modernising infrastructure, enhancing competitiveness, and promoting sustainable practices.

  3. What is the Capital Investment Subsidy Scheme? The Capital Investment Subsidy Scheme offers financial support to textile units for investing in plant, machinery, and technology upgradation. • Spinning • Weaving • Processing It encourages modernisation, capacity expansion, and cost reduction across the value chain. • Garmenting • Technical Textiles The scheme supports both MSMEs and large-scale units.

  4. Key Capital Subsidy Programmes in India ATUFS Haryana Textile Policy 10-15% subsidy on machinery investment, up to INR 30 crore. 20% subsidy on new machinery (max INR 20 lakhs) in designated blocks. State-Specific Schemes PLI Scheme Maharashtra, Gujarat, Tamil Nadu offer subsidies, interest, and electricity duty exemptions. Production-Linked Incentives on incremental sales for technical textiles and MMF products.

  5. Eligibility & Application Essentials Who is Eligible? Required Documents • Registered MSMEs and large textile units with valid Udyam or HUM certificates. • Detailed Project Report (DPR) • Machinery invoices and investment proof • New units or existing units undertaking expansion/modernisation. • GST compliance certificates • Bank loan sanction letters (if applicable) • Units located in states with active textile subsidy policies (e.g., Haryana, Maharashtra, Uttar Pradesh). Ensure all documentation is accurate and complete for timely processing.

  6. Spotlight: Maharashtra’s Attractive Textile Subsidy Capital Subsidy: 35% on bank loans for capital investment, 50% on own investment for powerloom units. Affordable Land: Lower land costs driving relocation and expansion. Supportive Policies: Favourable policies in regions like Navapur. Low Electricity Costs: Less than INR 3.5/unit, nearly half of Surat’s rates.

  7. Uttar Pradesh Textile & Garmenting Policy Highlights Capital Subsidy Electricity Duty Exemption 25% on plant & machinery; additional 10% in Poorvanchal & Bundelkhand. 100% electricity duty exemption for 10 years, significantly reducing operational costs. Infrastructure Support Employment Generation Subsidy Subsidies up to INR 5 crore for developing roads, ETPs, and training facilities. INR 3,200 per worker/month for mega units, fostering job creation.

  8. Impact & Opportunities ATUFS Success Over INR 621 crore subsidy released under ATUFS, benefiting 3,159 textile units (2022 data). PLI Scheme Boost Investments exceeding INR 1,500 crore under PLI scheme to boost MMF and technical textiles production. PM MITRA Parks Creation of world-class textile parks (PM MITRA) with plug-and-play infrastructure, attracting new investments. Global Competitiveness Enhanced global competitiveness and export potential for Indian textile MSMEs.

  9. How to Maximise Benefits Consult Experts Combine Schemes Engage expert consultants for eligibility assessment and comprehensive documentation support. Leverage capital subsidy + PLI + state incentives for maximum Return On Investment (ROI). Tech & Sustainability Align Investments Focus on technology upgradation and sustainable practices to qualify for higher subsidies. Align investments with government priorities: technical textiles, export readiness, and employment generation.

  10. Conclusion: Powering Textile Growth Through Capital Subsidies Capital Investment Subsidy Schemes are vital catalysts for modernising India’s textile sector. They reduce costs, increase production capacity, and create employment in rural and semi-urban areas. With strategic investment and government support, textile units can achieve global competitiveness and sustainable growth. Now is the time for textile entrepreneurs to harness these subsidies and weave a prosperous future.

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