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The Uttar Pradesh government is mulling transport subsidy to textiles exporters in order to boost exports from the state.
The proposal has been included in the textiles Industry policy 2013 of the state.The government would provide transport subsidy for transporting textiles goods meant for export from factory to the ports. Besides, the government has also decided to provide 7 per cent interest subsidy on working capital to textiles entrepreneurs.
Considering the current economic conditions, the ceiling on such subsidy would be increased to Rs one crore from Rs 50 lakh at present.
The decision in this regard was taken recently in a meeting chaired by UP infrastructure and industrial development commissioner (IIDC) Alok Ranjan and attended by representatives of ASSOCHAM, Northern India Textile Research Association (NITRA), textiles industry etc.
ASSOCHAM had suggested that the textiles industry should be extended the interest subsidy on working capital on the lines of sugar industry. It also informed that the facility of 7-8 per cent interest subsidy was available to textiles units in Gujarat, Maharashtra, West Bengal and Rajasthan.
Meanwhile, the state has decided to offer exemption on capital investment ceiling to mega projects in textiles segment. The state acknowledged that textiles industry generated large scale employment opportunities and such exemption would be available on case to case basis on mega projects investing Rs 200 crore to Rs 500 crore on capital investment and even higher investment.
