Business

Gujarat Leads Investment in Textile Manufacturing

Textile Commissioner Kiran Soni Gupta, IAS, has recently revealed that Gujarat is leading the investment in textile sector and taking advantage of the Central Govt.’s flagship subsidy program Technology Upgradation Fund Scheme (TUFS). “In the Technology Upgradation Fund Scheme, under the 15 per cent Margin Money Subsidy (MMS) 2897 projects sanctioned from Gujarat out of total 3200 project applications sanctioned to all over India. Similarly under 30 per cent MMS, 1160 projects from Gujarat got approval out of 4154 proposals sanctioned to all over India,” the Textile Commissioner informed in an official communiqué.

The 15% MMS is available to Spinning mills with matching forward or backward integration and Textile Dyeing, Printing & Processing, Technical Textiles & Nonwoven and Garmenting projects get 15% MMS in addition to 5% Interest Rebate. Factories that invest in brand new modern weaving machinery receives 30% MMS and 6% Interest Rebate.

Gupta also informed that under Revised Restructured TUFS which was announced last year, the Regional Office of the Textile Commissioner at Ahmedabad has received 1030 applications under 15 per cent MMS and 134 applications under 30 per cent MMS from small scale sector till July 2014. Interestingly, 90 per cent of the sanctioned projects under TUFS’s 15% margin money subsidy are from Gujarat.

In addition, the Scheme of Integrated Textile Park (SITP) where Government of India has been offering 40% subsidy on project cost, a total 61 projects has been sanctioned so far out of which eight projects are in Gujarat alone