State Textile Poli ies - A Comparison Government of Andhra Pradesh unveiled industrial Development Policy forthe period 2015 - 20 an April 1, 2015. It contained sectoral policies for textiles, biotechnology and automobiles. A comparison of incentives announced forthe textile industry in Andhra Pradesh with other state textile policies is given below. ‘Comparison of State Textile Policies =m — ff SS Se we “vies commissioned ‘sing Indust! nvestmont Promation Patiey 2010-15, prod can opt for tne benef afforded under this potey fer tho remainder of the fve year eligi, peed) Capital Subsidy Overall Investment 10 % capita subsiy | Capt! subsidy up to Rs.10| tonow txtle unis in | crore o standalone Vidarbha, Merathwada | gormenting and apparel and North Maharashtra | unt, as pa ho invesimant ‘sae indestad below, The {nits wit ot be Ete for VATICSTISGST incertes, ee ar a toned oma rowe 526 -5er Bpicrcme Nese Prpew foe ante.Head Sub-heads Gujarat Maharashtra ‘Andhra Pradesh Telangana Others “Technology acquisition & Enterprises acquiing uo-gradaton = technology assistance of the entoprencure wll be encouraged io acquire technology ftom abroad Financial assistance upto S50 percent, with maximum ‘of Rs. 25 lakh por Process! Product {Up t 50% ofthe irwostront Intachnsiogy feolaboraton Tmax amount of Rs 25 lakh per rocessoroduet only ‘nce during operative poviod ofthe schome. Enterprises avaling 2 bene forthe same ‘uspose under any other ‘Scheme ofthe State Govt ‘wil nt be eligible fo get Densits uncer hs scheme, Tnerest Subvention Interest Subsky “ inrestsasiay of 5 percent wit cing 19 period of vo. ‘years on now plant & fachinery for Gerng & Processing kiting, macrine ‘carpeting and ater toxtle relate sctviie, iso on ‘hth certain condtons Dinerost subedy of 6 paroert cn new plant and machinery for ecrnical Tonales besides second hand importd machinery ‘with certain eongtlone ‘lowed Sieterost subsidy of 7 paroent cn new plant & | machinery for coton Stirring, Garment and ‘age-pe:9¢ wala for | eeond hand importes fatlon sping mach ‘Sith cera cShations The site wll provi financial aesstance 2 manor that eflacve fate of intrest payable by the ebb uits ‘wi be O38 oF 236, Tnierest subsidy @ 8% per sour for Weaving (wat or without preparatory), DBysing & Procossing, Kiting, GarmentMado-ups, achive Carpating, Mactine Embreldery, Technical Textles and ary other Aalutbesrocass ko rpg. texan, basting, winding, zr, etc. win the Textile Valve Chain an Upto 75% fer Simin & oder Gavin Inarest, Subsidy wl be capped 112.8% taking mio count faailance om al eourees (Centraty sponsored TUF Scrome insta poly of Tha stat, ole) Iter Subst wl be for 7 years wie 2 ou of ‘moratorium. Unk 2a Interest subsidy under TOF are only eg forts bene. For the purpose of this schome, ether 12.5% or the bank pre lncing rate trthe rate of interest ‘clunky charged, whichever fate less, wll bo taken the apollo ate of ntres Reape ‘nlerst subsidy eer spinning actty (excluding Ginn) fo a period St8yoare rom te ‘ate of commencement fteommeria’ production Reimbursement of ‘nest sub @ 6% for nausties Involved in composi selves Le, spiming ‘ane weaving ‘ting! dyerat garmentng {excucing ginning) ‘era pored of 8 yoare ‘tom the date of commencement of Sommers ProductionHead Subsheads Gujarat Maharastra ‘Andhra Pradesh Telangana Tamation \VAT concession | Refund of VAT paid Reibuverent of 1% Cotton baced unis ie VATICSTISCST paid by ‘ering sein and “ra enporchana ‘eon on purchase of Inmate postr ion eaten yor ara ist xg an remission of tax collected ‘on eoton yem: on ‘Purchase of raw material Sand omission of tx Coleco on roadyade ‘garmens, as VAT ‘ancession {applicable to theextent of nvesiment| iniant Machines) ‘ransacions which are not Elpible fortax credit under AP RT at, 206, Reimbureoment of net VATICSTISOST foto Callas on esprit Inlemedaie product witin Entre valve chan (rom Colin to garment en ‘made-ups) tothe extent 1 100% of he osg6 ‘ed capil vestments inp and macnn. Tris noentve canbe sme xt win 8 oa fon the dato of Commencement of ammorsal prosuctor Tita 5 yon prc, Power Assistance Captive power “The entarpises setting up toreraton unt haveg cape Som portal egiven Srered soy of hte Spsehanilhvemoc Special concassion | Pover fui ipower tari” | @s-1 perunt for cotton Spinning ndusies and | weaving units @ 5.1.0 per uit for Spinning and modem, {Grmning and @ RS.1.50 Per uniter oer Categories fncuding Teoma exos) ora Prod of years ror ato of commencement (OF eommercialproductonHead Sub-hoads Gujarat Maharashtra ‘Andhra Pradesh Telangana ‘Common Facilities Textiles Parks Upto 50 percent wih Park developer and maximum colng 0°. 30- enlerrses in he park ‘ror for common wl be lige for infrastructure for Cotton Teiroursemant of stamp ‘Spinning Par wth ‘diy on lease ofand ‘without Weaving bt with ‘maximum ceing of .10- ‘ror for common infesiruciure in Parks and ‘Other Textles Activites equi forthe new atk. For esabishing ‘common inasinature facies fn ass uno 50% or max RS 15 crore (Rs.30 core or composteintegrated atk) limited to 10% of the total project cost (exclucing cost of ana) 50% of projet cost or soting up of CETP at Ineisnal custerstestle patks or Rs.10 cove, whichever sess. In cate of Handloom soctr, 0% af the Project cost for CETP Sr RS2 cre, whichever sts wil be provided ‘as onetime grant |Assisiance of upto 50%, subject to ama. amount ‘of R.50,000 each for compliance Exemptions ‘Stamp Duty | Stamp duty exemption to developers and units for testes Green Technology Energy & water Assistance up to 50 ‘conservation and percent for aut report environmental amounting to maximum of compliance Fs,50,000, assistance up 10.20 percent of cost ofHead Gujarat Maharashtra | Andhra Pradesh Telangana ‘equipment subject to maximum Rs 20k, ‘gible once in 2 years ‘during operation period of the scheme, as suppor for ‘energy and water ‘conservation and Environmental ‘compliance, for Processing |Sexrana Entre Value ‘Ghai Copecity ‘Apparel Training | 1 Assistance up to 05 ‘Apparel and textile Bullding’Training InaitutesiGentres parcont, subject o designing courses in InstitutesCentres fraximam Re crow, Mig: Any autonomous clung tan cost, for institution promoted by tng up Training ‘ovt/PSUs or private ; secer via bite bed background of texte teva caupmott cry se aparel indies o ‘gadatonefaciies nis sklled manpower ‘development wil be 3. Assistance upto 50 provided assistance erent, subect 0 Up io 75% subjecttoa Maximum Rs 202k for (eaten mncont ch ‘Teaning Cones; Ret croe of the 4. Reimbursement of Project cost tulon fees io talness as ‘assisznice @ 80 percent, upto Rs.7.000 per trainee per course; | 5.Roimbursoment of ‘ining SSR will ‘maximum of R.7,000 per ‘waer per week, as. assisanoe to training to TrainersHead ‘Sub-heads Gujarat ‘Maharashtra: Andhra Pradesh ‘Telangana ‘tat Development| Ting ost xsi Training Centres dovelopmentforweavrg- 5% of er mvesent Sipe vanoes towards purchase of rez (lal ‘equipment and ree ah a che allowance 1 weavers Littrell @ Rs 200day, and to subject oa max. of jobbers @ Rs.300!day as Rs.20 lakh Besistnee er acrances 20 kh per conte fang peweroom Reinbursement of Shiner obo" and wore {ution fost trainees, Se earing costo sl Assitane for Traning evelopmont io Poner of Trainers & Training loom / Weaving Sector ‘Support to Powerloom SectorSubheads Karnataka Madhya Pradesh Madhya Pradesh Rajasthan Policy Period Policy Effective dates Erect ti 2018 2018 2nd March 2013 {stMaren 2018 tet October 2014 Onwards 22nd ly 2018 ‘tstMareh, 2020, ‘capital Subsidy Overatt Investment Credit Linked MBME Projects (upto Rs.10 Crores) Zone 182 20% of he Frea Assets Re.10 Crto Rs.25 Crs Zone 1: 20% ofthe Fed ‘Reosis of Re 4.00 Crores, ‘ohichever is iess Zone 2: 15% ofthe Fhe ‘Assets of R5 2.00 Crores, ‘nbichever less Re.26 Crto Re.60 Cr Zone 12 20% ofthe Fed Assos oF RS 4.0 Croves, whionever sles. Zone 2: 15% ofthe Fixed Aecois of R830 Cres, vahicbever is eos Re.5t Crto Re.99 Cr ‘Zone 1 20% othe Fe, Asses oF R3.8.00 Crores tihichevers less Zone 215% ofthe Fed ‘Reosis or Re 5.00 Crores, ‘ohichever sles New texte units wit be given an investment subady @ 10% of sige captal Investment subject 0 ‘maxima ime ore. crore Micro, Small anc Messin texte units shall be given on investment evbsdy of 10% of alg Investment made in ‘TUFS approved pant & machinery subject o 8 maximum imi 3° INR ere others ‘Adaltional Subsidy: (2) Units within Designated Textile Parks: Zone 182: 5% of Fhiee Asset or Re 10 Lakhs, whicoveris ess (0) SC/ST eatogory: one 182: 20°49 Fed Ascot or Rs.20 Lakns ‘whichever slesHoad Subsheads Madhya Pradesh Madhya Pradesh Rejasthan Interest Subvention Minorityrex-service Menfvamen Zone 182: 5% of Fed ‘Asset or R36 Lakhs, ‘ahichover sles Interest Subsidy ‘Special Credit Liked Capital Subsidy: {() Technical Textile Units Zone 182: Add. 10% on the value of Plant & Machinery ors 25 Lakes, ‘hichevers less {i) Integrated Units (more than one value chain} Zone t ‘Adal. 20% on opie tant & Machinery or Rs:30 Lakhs, whichever is ess Zone 2: ‘Adal, 10% on eile Plant & Machinery or Rs-20 Laks, vhicheveris less {ii) Ecortiendly Unt Zone 182: Adsl 20% onthe value of Plant & Machinry installed to promote cleaner and fnuironmont enaly tachnologis or Ri. 20 Lakhs, whichever is less In err to fcliate the Enivepreneurs, interest subsidy wil be provided to entrepreneurs for investment plo Rs.99 crores. The applicable (Creat Linked Captal 4 An interest subsidy @ 2%6 or apetcd of 5 years wil be provided ‘an long term loan linked to tho contrally ‘sponsored Textile Upgradation Fund New units + investment ‘upto Rs.25 crores in fixed asset: 296 for § years rom ‘he date of commercial ‘roduction on term loan ‘taken for TUFS approved 1. lterest subsidy shall beat the rate 015%, An addtional interest subsidy of 1% shal be avaible to enteprise making gible fixed capaHead Sab eads Karna Madhya Pradesh Madhya Pradesh Rajasthan ‘Subsigy (General Category) | Scheme (TUFS) subject plant & machinery subject | investment of more. ‘amount ofered wil be spit tomaximumlnt of foacaiing of Rs Serores. | than rupens twenty 2 Fallows: Re Serco New standalone units + | five cores 250% ef the approved 2. An intrest subsidy investment more than | 2. inlerest subsidy textlay on meoting @Swtorapercdef —Rs2eroresinfixed | shallbe tthe rte requisite development | 5 years willbe asset (of) Of 75 for he now ietone provided on longterm Expanslon/Diversifiation| entorpase in 1) 50% ofthe Ioans frpurchase of of exiting standalone | Technical Taxile category ‘pproved outey asieterest Plant & Machinery unit with fresh subsidy over five yeors, on approved under Investment in TUFS, meeting requste Cenvally spansored__ approved plant & Ineresvobligatons fom TUFS with xed capital machinery of at least Banksifls and fnarcsol —investmentofRs.25 30% of existing Iiestone Croce or more Investment in fixed ‘The hneret subsgy 3.An eres subsidy capital assets (not less provided wil at exceed @TS for aperiod ofS than RS.25 erores oF the cap as mentioned years wif be provided R50 crores, Under CLCS of ncontives _oniongtarm loans for whichever is less): (fered, any case purchase of Pant & 5% for 5 years trom the Machinery approved date of commercial under Centrally precution on term loan Sponsored with fed token for TUPS approved CCapitalivastmentof plant & machinary Re 25 crores or more. New composite unit with an investment of more than RS.25 erores in fxed assets (or) Diversification ‘of existing standalone Lunit into a composite Unit 7 for 5 years trom the ate of commercial Drosueson on tom loan faken for TUFS approved plant & machinery Taxation VAT Concession Entry Tax: var Entry Tax Exemption: | Incantve wit be Fulltemoursementon Refund of VAT and. For units with an. prowded tho Plant & Machinery and infersate sales ax investment ef upto bnlerrse in tems Captal Geeds ncugng for spinnin mal Rs tO crores implant | of ramaursemert cauipmenis for Captive Refund af VAT paid machinery: 81 60% of VAT paidHead ‘Sub-heads Karnataka Madhya Pradesh Madhya Pradash Rajasthan Powergenerston and | on purchase ofraw § years under Rajasthon fer Comman Effuont material and remission For units with an Value Atos Tex Treatment and Waste Oftaxcoleciod on investment of more Act, 2003 0n| Disposal Facates oth manufacturing than RS-100 crores In__purchase of yarn for Units: Refund of VAT plant & machinery: {se m manufacture ‘and cena sales tax years ‘of goods for sale ‘on readymade vat byhim ‘garments Refund of entrl sales cy for ation ginaing mils. csr. $ Refund of CST on finished goods to ‘inning ale Refund of ST on inerstate sales Tor Spinning rls Rolund of VAT paid ‘on raw matotal or loth manactunng mils; Retund of VAT ‘and CST for readymade garment urs. Fora period of 8 years from ante of ‘commeancament of Proguston, Assistance willbe given for 8 yaars om te ‘ate of commercial production, witin an vara ceing oF Investment in TUFS Approved plant & machinery. o uns ‘win kivestment of Fis. crore or more in fined capital Power Assistance Captive Power Generation Special concession Inpower ttt ‘All value chain activity of Textile Including Technical Textile Reimbursement of cost of power paid @ Re.00 por tit Tin case of H-tach Power Loom units, power ‘connection should've ‘bove 20 P| ETP in Greontiold Text Parks/Srownfeld Chester Dovelopmontispecitic Texlle Zones in Backward rows Reimbursement of cost of power paié @ R1.00 per ttHead Sub-heads Karnataka Madhya Pradesh | Machya Pradesh Rajasthan ‘Common Faciliies Textile Parks ‘Common infastructure ‘An assistance of 15% for Greenfield Textile the experi on Parks Zone 1: 40% of the projact oat oF Rs 20.00 cores ‘hichever less Zone 2: 20% ofthe project conor Fs 1500 crores, whichever Isles () Projects approved lnder any Cental Government Scheme Zone tad i0seattne project costo Rs. 10.00 Grores, whichever is ess etablshmontdovolop tment of Insti Park | Subject toa maimum limiter Rs cores Minenur ares 50 wcres fd minimum of B industial unis Exempiions Stamp Duly ‘Stamp Duty 50% exemption Reimbursement ‘fom payment ot Full ramoursement for Stamp Duty on Zone 1 & 50% for Zone purchase o lease of 2 vat rospect to [End ane Constuctory () Execution of Lease | Improvement of Ussco-curesaie and sh lend Sale deeds in respect of ‘rds onelpots Aloties (i) Bxecuton ‘of Lease Deeds in case | findustal shedsllote token on Lease (ip Loan ‘re crt doods, ncuding Seeuny documents suc 2s mortgage deed, pledge eed ot, oxocuted for ‘2valing long term func from Ganka / ls and ther agencies of GOKIGO! Electricity duty 50% exemption Mandi Fee 50% exemption ‘Others nity Tax exemption “The Rajasthan Tax forunts: on ny of Goods # Investing more than ito the Local Areas,Hose ‘Sub-heads Kamataka Madhya Pradesh | Madhya Pradesh Rajasthan s.100 gore for Lary Tan, 50% on 7 years And payment of Land ‘ Forathors for Fax, 50% on Syeas payment of Conversion Charges Bayable for cronge ffland use Green Technology Energy & water | Common Effuent ‘Siri, Mediu, Lage conservation and | Treatment Plent and ege inausties sha nvronmental”” | Hazardous Waste be povided 2 capital compliance Disposal Facity: Sbsiy of SOM up @ G)B0H a no project cost smamum of Re. 38 skh Sees 8 cores, {orinvement in seting 1B) or eo project ost rinagoment yt (6) 1 projec cost mana wns ers core ieneveris Ganaeen eee), {ess frflancioom Sector polsion eontl devices, (Biomol te promt cost Fath an satety or Ra. cores wnicheves Sandor, watet ‘ieee projec fndes oneonation by Gol farvestng ee Capacity ‘Apparel Training | () Market Development | a) 25% subsidy willbe | 25% subsidy wil be given Buliding(Training | InsttutesiCentres | Snd Branding’ ‘wen for forestabishmentof InstiutesiGentres Apparel Training | 50% othe estabishment ot | Apparel Training Institute coat of proposed ‘spare Telning subset 6 anoxia ‘nterventons or Rs.60 alts, whichovor its ‘Design Development land Product Diversification: 50% of the coat of proposed Interventions or Rs.25. Lakes whichever sls {iy Standard and Compliances Specific ‘Texte Zones in Backward Areas! Se othe cost of ‘proposed interventions or Re Lakhs, whichever 8 sce, Institute subject to ‘a maximum it of Re 28 lathe by isseot (oat of sting up tists Park sbject tomexmum of Ras lito Re 25th