In a move to extend benefits and accelerate growth in the garment and textile sectors, the ministry is considering a 10 per cent capital subsidy in addition to the 5 per cent reimbursement on the purchase of machinery.
These benefits are being extended under the much-talked-about, modified Technology Upgradation Fund Scheme (TUFS), likely to be unveiled soon. At present, these benefits are available only to the textile processing sector.
The government will also ensure the companies are able to purchase land easily, he said.
“The proposal to extend these benefits has been cleared by the finance ministry. We are now waiting for the Cabinet nod. We are also looking at several other steps like labour sector reforms and rationalising some local levies on export-oriented units at the state level to help these sectors cut costs,” said Textile Commissioner JN Singh.
Also, at least four centres of excellence in the textile sector have been proposed by the government. The centres will be set up on a private-public partnership basis, with Rs 16 crore investments from the government. “These institutes will take up R&D activities and also train manpower,” Singh said.
While the world is looking at India and any number of apparel and lifestyle brands are introducing their retail models in the country, it is time for the domestic industry as also the government to get together and make maximum use of their technical functional capabilities.
