| Regarding Operational Manual | |
|---|---|
| Operational Manual | Download |
| Zone | Definition |
| Zone 1 | Entire Kalyana Karnataka Region, ( Bidar, Kalburgi, Yadagiri, Raichur, Koppal and Bellary) |
| Zone 2 | All areas other than Municipal Corporations, District Head quarters in Non Kalyana Karnataka Region |
| Zone 3 | All Municipal Corporations and District Head quarters in Non Kalyana Karnataka Region |
| Zone 4 | Bangalore Urban District |
The State’s New Textile and Garment Policy aims to position Karnataka as a leading destination in the Textile and Apparel sector in the country and to make textile value chain into gold mine value chain. The Policy will provide a stimulus to the textile industry in the State and aims to generate 5 lakh new employments in the next 5 years and attract investments worth INR 10,000 crore.
MissionTo retain Karnataka’s position as the Garment Capital of India and to achieve higher and sustainable growth in the entire textile value chain through capital infusion, technology transfer, world class infrastructure and skill up-gradation.
Policy TargetThe New Textile Policy envisages an ambitious investment outlay of INR 10,000 crore and aims to generate employment to 5,00,000 people during the policy period i.e. 2019 to 2024.
Thrust Sectors:With an aim to boost the local economy and to create a holistic textile and apparel
ecosystem in the State the following sectors have been identified as thrust sectors for
interventions in the New Textile and Garment Policy 2019 - 2024 and would include
the following:
I. Spinning ii. Weaving
iii.Integrated Units
iv. Processing v. Technical Textiles
Strategies
*) To accelerate growth and increase manufacturing cost competitiveness in the entire textile value chain from fibre to fashion products..
*) To give special focus on spinning, weaving (rapier loom, air jet looms and electronic jacquard), integrated units, processing and technical textiles as thrust sectors of the policy to create an internationally competitive textile industry in the State.
*) To make Karnataka a skill rich State in each segment of t he textile value chain and develop high tech advanced Skilling centers for skilling, re-skilling and up- gradation of skills as per the needs of the industry.
*) To realise “Zero Effect: Zero Defect” at each level of the textile value chain by attracting large scale investments for manufacturing world class facilities and To increase the share of handloom exports and support designing, product diversification, branding, marketing and distribution of handloom products to d i s t i n c t international markets.
*) To position Karnataka as a significant manufacturing hub and a net exporter of Technical Textiles
*) To become the retail destination and give a boost to the growth of buying houses Definition
| Enterprise | Textile | Garment |
| MSME | MSME Enterprise: As per the
MSMED Act, 2006, Manufacturing
Enterprises have been defined based on
investment in plant and machinery and
classified into: * Micro Enterprises – investment up to INR 25 lakh. * Small Enterprises – investment above INR 25 lakh and up to INR 5 crore. * Medium Enterprises – Investment above INR 5 crore and upto INR 10 crore. |
MSME Enterprise: As per the MSMED
Act, 2006, Manufacturing Enterprises
have been defined based on investment
in plant and machinery and classified
into: * Micro Enterprises – investment up to INR 25 lakh . * Small Enterprises – investment above INR 25 lakh and up to INR 5 crore. * Medium Enterprises – Investment above INR 5 crore and upto INR 10 crore. |
| Medium & Large | An industrial unit which is not classified
as micro, small and medium enterprise
and with an investment up to INR 300
crore shall be classified as large
enterprise. Employment : minimum of 200 for the first INR 100 crore and additional 75 employment for every additional investment of INR 100 crore proportionately. |
An industrial unit which is not classified
as micro, small and medium enterprise
and with an investment up to INR 200
crore shall be classified as large
enterprise. Employment: minimum of 2000 for the first INR 100 crore and additional 1000 employment for every additional investment of INR 100 crore proportionately. |
| Mega | Projects with an investment in fixed
assets above INR 300 crore shall be
classified as mega enterprises. Employment: minimum of 350 for the first INR 300 crore and additional 75 employment for every additional investment of INR 100 crore proportionately |
Projects with an investment in fixed
assets above INR 200 crore shall be
classified as mega enterprises. Employment: minimum of 3000 for the first INR 200 crore and additional 1000 employment for every additional investment of INR 100 crore proportionately. |
| Anchor Enterprise/Ind ustry (For first two units only in a taluk) | Textile unit first of its kind in a taluka where no other textile unit has to been set up till the notification of this policy. The minimum investment shall be INR 100 crores and the unit shall employ at least 200 direct employees to be classified as Anchor Enterprise / Industry. | Garment unit first of its kind in a taluka where no other garment unit has to been set up till the notification of this policy. The minimum investment shall be INR 50 crores and the unit shall employ at least 1000 direct employees to be classified as Anchor Enterprise / Industry |
In order to develop the textile sector in the State, the forth coming Textile and Garment Policy i.e. 2019-2024 would provide support to the industries for investing in the different value chain of the textile sector by providing incentives. The scheme of incentives, their objective, eligibility, and components to be funded and funding pattern are detailed herein:
Segment
Thrust Sectors
Others
Zone 1
30%
25%
Zone 2
25%
20%
Zone 3
20%
15%
Zone 4
-
-
Segment
Thrust Sectors
Others
Zone 1
25%
20%
Zone 2
20%
15%
Zone 3
15%
10%
Zone 4
-
-
Additional Subsidy
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons/ Persons with disabilities / Minority / Ex- servicemen / Women
Segment
Garmenting
Zone1
25%
Zone2
20%
Zone3
15%
Zone4
-
Segment
Garmenting
Zone1
20%
Zone2
15%
Zone3
10%
Zone4
-
Additional Subsidy
Additional 5% capital subsidy on the value of Fixed Assets for SC/ST persons / Persons with disabilities/ Minority / Ex- servicemen/ Women
Segment
Zone1
Zone2
Zone3
Zone4
Segment
Zone1
Zone2
Zone3
Zone4
Thrust Sectors
Others
5% per annum Interest Subsidy on Term Loans for the first 5 years
Garment
ing
5% per annum Interest Subsidy on Term Loans for the first 5 years
Segment
Spinning
Weaving
Integrated Units
Processing
Technical Textile
Others
Use of non- conventional/ renewable sources of power
zone 1,2,3
INR.2
INR.2
INR.1/-
INR.2/-
zone 4
-
Segment
Spinning
Weaving
Integrated Units
Processing
Technical Textile
Others
Use of non- conventional/ renewable sources of power
zone 1,2,3
INR.2
INR.1
INR.2
INR.1
INR.2
zone 4
-
Segment
Garment
Zone 1,2,3
INR.1
Zone 4
-
Stamp Duty Exemption and Concessional Registration Charges
Stamp Duty Exemption and concessional registration charges rate of INR 1.00 per INR 1000.
-
Segment
Thrust Sectors
Garmenting
Others
All Zones Except Zone 4
75% reimbursement of employers contribution of wage rate per employee per \ month for all the new units for a period of 5 years as EPF and ESI subsidy
Zone 4
-
Segment
Garmenting
Zone 1
INR.3000/- per employee
Zone 2
per employee
Zone 3
INR.2000/-
Zone 4
-
In order to promote green measures for cleaner and environment friendly technologies and to encourage ZLD measures 50% capital subsidy or INR 5 crore whichever is less for establishment of Effluent Treatment Plants (ETPs), will be provided across all locations in the State for integrated and processing units
(a) The Individual Legal Entity / SPV would be provided one time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost or INR 40.00 crores per Park project, whichever is less irrespective of the Zones they are in.
(b) Projects approved and are being funded under any Central Government Scheme may receive fresh approval under such schemes, where only an additional 10% of the Project cost will be provided as supplementary State Government incentive to such Park Projects.
The individual / SPV will be provided one time grant to Brownfield cluster, up to 40% of the Project Cost or INR 12.00 crores per industrial estate project, whichever is less irrespective of the Zones they are in.
(1) The one time grant support will be provided to the Individual / SPV of up to 50% of the project cost and in case of Handloom projects, the subsidy would be limited to 80% of the project cost.
(2) In case of the projects being funded under any scheme of Government of India, the subsidy would be limited to 20% of the project cost or INR 5.00 crores, whichever is less.
Grant of INR 10 crore for setting up Center of Excellence for Textiles / Technical Textiles will be funded by the State Government.
Up-to INR 1 crore funding support will be provided to the institutions who are into the academics/skill development in the textile value chain, for up-gradation of training facilities in the campus. Funding support will be provided to the institutions on the basis of approved DPR which should justify the textile infrastructure up- gradation. Three institutions will be supported for the textile infrastructure up-gradation, during the policy period.
Funding interventions by Department of Handlooms & Textiles would include support towards training cost would be INR 9500 for SDCs and INR 11000 for Private centers per beneficiary for 45 days. The detailed segregation of the training cost would be as follows:
* Training Beneficiary Stipend- INR 3,500
* Support towards Raw Materials-INR 1,000
* SDCs and INR 6,500 for private training centers.
Support towards the training cost shall be INR 11,000 per beneficiary.
Reimbursement of 50% of the cost of proposed interventions or INR.50 lakhs, whichever is less
Reimbursement of 50% of the cost of proposed interventions or INR.25 lakhs, whichever is less.
Reimbursement of 50% of the cost of proposed interventions or INR. 5lakhs, whichever is less
The Department of Handlooms & Textiles intends to promote and facilitate Mega Projects units in Textiles and Garments which would have multiplier effect and would be integral to the employment generation activity and inclusive sector development in the State. Case to Case Package of incentives / concessions will be considered for deserving Mega Enterprises Units over and above the incentives / concessions mentioned for Large Enterprises as per the following.
Projects with an investment in fixed assets above INR 300 crore shall be classified as mega enterprise
Projects with an investment in fixed assets above INR 200crore shall be classified as mega enterprise.
Employment: minimum of 350 for the first INR 300crore and additional 75 employment for every additional investment of INR 100 crore proportionately.
Employment: minimum of 3000 for the first INR 200 crore and additional 1000 employment for every additional investment of INR 100 crore proportionately.
Industry first of its kind in a taluka where there are no textile industries with an investment of INR 100 crore shall be classified as Anchor enterprise. Employment: minimum of 200
Industry first of its kind in a taluka where there are no garment industries with an investment of INR 50 crore more shall be classified as Anchor enterprise. Employment: minimum of 1000
The total incentives drawn as per provisions under the policy shall not exceed 100% CAP of Fixed Capital Investment (FCI) for Large and MSME units in Kalyana Karnataka and Non Kalyana Karnataka Region.
Additional incentive of 5% on Fixed Capital Investment (FCI) for Thrust Sector Units.
Additional incentive of 5% on Fixed Capital Investment (FCI) for Anchor Units set up across the state
Additional incentive of 5% on SC/ST Entrepreneurs / Persons with disabilities / Minority / Ex-servicemen / Women, over and above the standard package..
| Title | Details |
| Click here to know | Textile Policy 2013-18 / New Textiles Policy 2019-24 |
| Click here to know | Karnataka-Destination for world textile and garment industry |