Textile Policy of Maharashtra

Government Resolution

The State Textile Policy is hereby approved vide this Government Resolution. The salient features of State Textile Policy are enumerated in the following subsidy for textile industries subsidy for textile industries

Period of the Textile Policy

This Textile Policy will come into effect from the date of issuance of this Government Resolution and will continue to be in effect till 31st March, 2023.

  • Textile Components included in Textile policy 2018-23
  • Cotton ginning and pressing
  • Spinning / silk reeling and twisting / integrated silk park / synthetic filament / yarn
  • texturing, crimping and twisting
  • Weaving and powerloom
  • Technical textile, non-woven and converters of non-woven
  • Knitting / hosiery / garment / apparel & made-up
  • Processing of fiber / yarn / fabric / garments / made-ups
  • Processing of non-conventional fiber / yarn / fabrics / garments / made-ups (bamboo,
  • banana, ghaypat, maize, coir, hemp, etc)
  • Expansion of existing textiles units
  • Textile Parks / processing parks
  • Energy saving and process control equipment for various textile sectors
  • Skill development activities
  • Wool sector (i.e. scouring, combing, spinning (worsted, shoddy and woolen) and
  • weaving and carpet sector.
  • Standalone spinning
  • Spinning with matching downstream capacity
  • Manufacturing viscose filament yarn / viscose staple fiber
  • Independent weaving preparatory
  • Embroidery on standalone basis
  • Composite upgradation (i.e. units going for upgradation in spinning, weaving / knitting
  • and processing)
  • Multi-activities (units with two or more activities simultaneously except composite
  • upgradation mentioned above)
  • Composite unit
  • Other units of textile industry not mentioned herein

Eligibility for Capital Subsidy:

The eligibility for capital subsidy will be decided based on the installed capacity of the project and actual annual production

Following schemes will be implemented for the development of Textile industry under

Textile Policy 2018-23

  1. Co-operative spinning mills

The scheme of government equity for co-operative spinning mills will be implemented only in the cotton growing districts of the State.

The scheme will be implemented only in those talukas where less than 50% of the cotton produced is consumed in the spinning mills situated within those talukas.

2. Powerlooms:

Maharashtra has 13 lakh powerlooms accounting for 50% of the powerlooms in the country. The plain powerloom accounts for 80% (approx. 10 lakh) of the total powerlooms in the State.

3. Textile Parks

The scheme of providing Rs. 9 crore or 9% of project cost, whichever is lower, to the

projects by the State Government and those which are approved under Central  Government SITP scheme

4. Knitting, Hosiery and Garmenting

Plug & play premises will be established by MIDC in each District / Taluka of Vidarbha, Marathwada and North Maharashtra for setting up of knitting, hosiery and garmenting units.

Capital Subsidy in lieu of Interest Subsidy

The details of the Capital subsidy rate and the duration for various textiles units are as follows:

Type of Textile
  Processing (yarn, fabric, printing), Technical textile Knitting, Hosiery and Garmenting* Composite Unit ** Spinning, Ginning, Pressing Conversion of Old Plain powerlooms to Shuttle less Rapier looms or looms based on latest technology (Modernization of powerlooms) New Powerlooms based on latest technology (Other than plain Powerloom), Weaving, Preparatory, Warping, Sizing, Conning, Twisting, Doubling, TFO and other textile units excluding those mentioned at Col 2 to 5
1 2 3 4 5 6
  % of eligible amount % of eligible amount % of eligible amount % of eligible amount % of eligible amount
Subsidy to units in the General category 40% 35% 25% 25% 25%
Subsidy to units in the SC/ST/Minority category 45% 40% 30% 30% 30%
Additional subsidy for production of Yarn, fabric and other products from non-conventional yarn 10% 10% 10%

The following additional subsidies will be applicable for textile projects in the Vidarbha, Marathwada and North

Maharashtra regions:

Type of Textile
  % of eligible amount % of eligible amount % of eligible amount % of eligible amount % of eligible amount
Additional Capital subsidy 20% 10% 10% 10% 10%
Additional subsidy for units having Forward/Backward Integration 5% 5% 5%
Additional subsidy for units set up in a taluka not having any existing Spinning mills 5%
5% Additional subsidy for new composite unit set up in a taluka not having any Co- Operative or Private spinning mill 5%

Mega Projects

New or expansion projects of the textile sector with investments of Rs. 100 crore or generation of employment for at least 250 in any Taluka will be granted the status and incentives of a mega project under the Industries Department’s Packaged Scheme of Incentives.

Incentives to Promote use of Green Energy

Special incentives will be given to textile projects implementing environment friendly solar and wind energy projects.

If spinning mills, powerlooms and textile projects are ready to set up green energy projects then the State Government, in collaboration with MEDA, will formulate a scheme for providing appropriate subsidy to reduce the overall power subsidy

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