Ministry Of Textile (MOT)

Scheme 1 : Technical Textiles

Ministry Of Textile Consultancy – Technical Textiles is a high technology sunrise sector which is steadily gaining ground in India. Technical textiles are functional fabrics that have applications across various industries including automobiles, civil engineering and construction, agriculture, healthcare, industrial safety, personal protection etc. Based on usage, there are 12 technical textile segments; Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech and Sportech

Investment promotion schemes by Government

Investors establishing technical textile unit in India can avail several benefits from central government schemes:

 • Technology Upgradation Fund Scheme (TUFS)

 • Scheme for Integrated Textile Parks (SITP)

• Coverage of major machinery for technical textile manufacturing under concessional customs duty list of 5%

• Certain technical textile products are covered under Focus Product Scheme, under which exports of such products carry duty credit scrip equivalent to 2% of FOB value of exports

 • Technology Mission on Technical Textiles (TMTT) oFocus Incubation Centres (FIC) Scheme for promoting usage of Agro-textiles in India (excluding North East Region)

• Scheme for promoting usage of Agro-textiles in North East Region

• Scheme for promoting usage of Geotechnical textiles in North East Region

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Scheme 2 : Guidelines for Pilot Phase to set up Incubation Centers in Apparel Manufacturing

The main objective of Scheme is to create an integrated workspace and linkages_based entrepreneurial ecosystem for start ups that is optionally and financially viable and increases the chance od success of start ups and decreased the limit and cost required to established and grow a new business

  • Promote entrepreneurship in appeal manufacturing
  • Create additional manufacturing capacity
  • Generate additional employment opportunities

Project components  

Component I Infrastructure   support  

Plug & Play f,’actory Building – Ready to use plug & play factory building with a total built-up area not exceeding 45,000 sq ft (@ 15,000 sq ft per incubatee), which can either be spread over three levels (G+2) or over a single floor. This shall comprise of operations area, packing, office, store, workers’ amenities, display, etc.

ii. Plant and Machinery : comprising of minimum 100 stitching machines along with ancillary machinery per incubatee

Comoonent II: Capacitv Building Support and Linkases

Training support for 200 workers per Incubatee. The training shall be carried out for 3 months in accordance with the norms of the Integrated Skills Development Scheme (ISDS) of the Ministry of Textiles

Grant Assistance and Release of Grant

Component Grant Assistance
Component I – Infrastructure 100% grant – in – aid will be provided towards infrastructure support not exceeding Rs 4 cr per incubatee and Rs. 12 cr per Incubation Centre.
Component II Capacity Building Services and Linkages I00% grant -in-aid towards Capacity Building Services and Linkages @ Rs 3l lacs (maximum) per incubatee

Scheme 3 : Comprehensive handicrafts cluster development Scheme

Mega cluster approach is a Drive to scale up the infrastructural and production chain at Handicrafts clusters which have remained unorganized and have not kept pace with the modernization and development that have been taking place so far.

Project Components

  • Technology Upgradation
  • Product Diversification
  • Raw Material Bank
  • Common Facility centre (CFC)
Activity GOI share Financial limit of GOI in Rs. SPV share
Soft skills such as skill development Training, Product Development workshop, etc. I year – 100% II year – 90% III year – 75% IV year – 75% Rs 10 crores/ project Nil 10% 25% 25%
Common production related Infrastructure which are artisan centric such as CFC, Work shed, etc 100% Rs 20 crores/ project Land and recurring expenditu re
Other commercial infrastructure – such Gas pipe line, etc 75% Rs 20 crores/ project 25% and recurring expenditu re
Facility Centers for Exporters/entrepreneu rs 30% Rs. 2 crores/ facility centre/Entre preneur 70%

Scheme 4 :Amended  technology up gradation funs scheme (ATFUS)

The scheme would facilitate augmenting  of investment , productivity , quality , employment , export along with import substitution in the textile industry . it will also be indirectly promote investment in textile machinery manufacturing

Norms for subsidy

Segment Rate of capital investment subsidy
Garmenting technical textile 15% subject and upper limit of Rs 30 crore
Weaving for brand new  shuttle –less-looms 10% subject of upper limit of Rs 20 crore
Composite unit / multiple segment – if the eligible capital investment in respect of garmenting and technical textile  catogary is more than 50% of the eligible project  cost   15% subject and upper limit of Rs 30 crore
Composite unit / multiple segment – if the eligible capital investment in respect of garmenting and technical textile  catogary is less  than 50% of the eligible project  cost   10% subject of upper limit of Rs 20 crore

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Scheme 5 : Comprehensive Powerloom Cluster Development Scheme

The scheme basically aims at improving the existing brownfield clusters for which a gap filling exercise for each cluster would identify the need based infrastructure that is to be funded.

Funding Parameters:

Keeping in view the plan outlay of Rs.99.99 crores (Rs.75 crore for Powerloom Mega Cluster and Rs.24.99 for Silk Mega Cluster) provided for beyond 12th Plan i.e.2017-18 to 2019-20, the CPCDS assistance of government of India for each approved Powerloom/Silk Mega Cluster project would be limited to Rs.50 crore inclusive of administrative expenditure, M&E and professional fee beyond the 12th Five Year Plan i.e.2017-18 to 2019-20. Also overflow, if any, to go to the next plan

Project Components

  • Common Facility Centres (CFCs) for pre and post loom weaving processing
  • Mini-Industrial Parks with Worksheds supported by Core Infrastructure
  • Innovative Ideas and other need-based interventions
  • Technology Upgradation
  • Skill Development
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