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Karnataka textile policy to generate employment
opportunities
Karnataka, India | Wednesday, 20th Nov. 2013 | By Textile Excellence
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The Karnataka state government has announced its new textile policy for 2013-18
attracting an investment of Rs 100000 million. The government intends to make the
state a preferred textile destination and create employment opportunities for over 50000
million people during the five year period.

One of the key features of the new policy is that interest subsidy will be provided to small
and medium investors in projects worth up to Rs 990 million. This amount will be a part
of the amount earmarked for credit-linked capital subsidy. MSMEs with a maximum
investment of Rs 100 million will be provided credit-linked subsidy of 15-20 % with a
ceiling of Rs 20 million. For units investing Rs 100-990 million, credit-linked capital
subsidy of 15-20 % will be provided with a ceiling of Rs 60 million.

Entrepreneurs belonging to Scheduled Castes and Scheduled Tribes will be provided an

additional subsidy of 20 % and those belonging to minority, ex-serviceman, physically
challenged and women categories will be provided with an additional subsidy of 5 %.
Under the special credit-linked capital subsidy plan, an additional 10 % on the value of
plant and machinery of a maximum of Rs 2.5 million and an additional 20 % on the value
of plant and machinery of maximum of Rs 3 million for integrated textile units will be
given.

For existing units taking up modernization, a subsidy of 15-20 % with a ceiling of Rs 10

million will be provided while sick cooperative spinning mills will be given a subsidy of 20
% with a ceiling of Rs 20 million for their revival and modernization. Under the policy,
new units will be provided 100 % entry tax reimbursement and 100 % stamp duty
reimbursement in Zone I and 50 % in Zone II. For mega projects incentives will not
exceed 15 % of the project cost or a maximum of Rs 500 million. Power subsidy of Re 1
per unit will be provided to all new units.The government will set up 145 skill
development centers in various disciplines of textiles for the benefit of the unemployed
youth.

For textile industries establishing their own infrastructure facilities at textile parks in
green field and brown field zones a subsidy of 40 % with a ceiling of Rs 200 million will
be provided. The government will also provide a financial assistance of Rs 100 million
for establishing a centre of excellence for textiles and for the overall and integrated
development of the sector.
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