Maharastra Textile Policy Scheme

Textile Policy Scheme

Scheme Overview

1. Projects Eligible under Scheme & Eligible conditions  :


• For Ginning and spinning projects   :
• –  long term loan approved till 31 March 2023 by banks / financial institutions and
• –  Projects submitted Form-A on the State Government website.
• Note: Form-A – For units who availed financial assistance from Bank


• For Other Projects  :
• –  long term loan approved for machinery under the centrally sponsored TUFS scheme
• (loan - for machinery only - taken between 15.02.2018 to 31.03.2023)
• Old Policy Applicable: loan - taken before 14.02.2018 - for machinery only .
• Note: New/ Expansion /Diversification / modernization projects undertaken during the Textile Policy 2011-17 will be continued with modifications in the Textile Policy 2018-23.


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


3. Pattern of Assistance :
• Capital Subsidy (For Textile Processing Plants)
1. For entire Maharashtra (Other than Vadabath, Marathwada and North Maharashtra)
2. For Areas of Vidarbha, Marathwada and North Maharashtra (i.e. Cotton growing area)



(A). For entire Maharashtra other than Vadabath, Marathwada and North Maharashtra

(i) Processing (yarn, fabric, printing), Technical textile Knitting and Hosiery and Garmenting:
	General Area	SC / ST / Minority
Capital subsidy (On Construction cost of ETP / CETP / ZLD in the processing projects)	40%	45%
Additional capital subsidy:
-  For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
-   For projects with investment of Rs. 500 crore and above	5%	5%
-   For projects with investment of Rs. 500 crore and above (If it is the first project / pioneering project in that taluka)	10%	10%
-   For units having Forward/Backward Integration	5%	5%
(ii) Composite Unit: (Comprising minimum two activities of the value chain, i.e. spinning, weaving, knitting, processing and garmenting)
	General Area	SC / ST / Minority
Capital subsidy	35%	40%
Additional capital subsidy:
-  For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
(iii) Spinning, Ginning, Pressing:
	General Area	SC / ST / Minority
Capital subsidy	25%	30%
Additional capital subsidy:
-  For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
-  For projects with investment of Rs. 500 crore and above	5%	5%
-  For projects with investment of Rs. 500 crore and above. (If it is the first project / pioneering project in that taluka)	5%	5%
- For units having Forward/Backward Integration	5%	5%
(iv) Conversion of -  Old Plain power looms to Shuttle less Rapier looms (or) -  Looms based on latest technology (Modernization of Power looms)
	General Area	SC / ST / Minority
Capital subsidy	25%	30%
Additional capital subsidy:
-  For projects with investment of Rs. 500 crore and above	5%	5%
-  For projects with investment of Rs. 500 crore and above. (If it is the first project / pioneering project in that taluka)	5%	5%
(v) -  New Power looms based on latest technology (Other than plain Power loom), -  Weaving, Preparatory, Warping, Sizing, Conning, Twisting, Doubling, TFO and other textile units (Other than I to IV activities)
	General Area	SC / ST / Minority
Capital subsidy	25%	30%
Additional capital subsidy:
-  For projects with investment of Rs. 500 crore and above	5%	5%
- For projects with investment of Rs. 500 crore and above. (If it is the first project / pioneering project in that taluka)	5%	5%
- For units having Forward/Backward Integration	5%	5%




(B). Vidarbha, Marathwada and North Maharashtra regions: (cotton growing area)

(i) Processing (yarn, fabric, printing), Technical textile Knitting and Hosiery and Garmenting:
	General Area	SC / ST / Minority
Capital subsidy (On Construction cost of ETP / CETP / ZLD in the processing projects)	60%	65%
Additional capital subsidy:
- For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
- For projects with investment of Rs. 500 crore and above	5%	5%
- For projects with investment of Rs. 500 crore and above. (If it is the first project / pioneering project in that taluka)	10%	10%
-  For units having Forward/Backward Integration	5%	5%
- For units set up in a taluka not having any existing Spinning mills	-	-
(ii) Composite Unit:(Comprising minimum two activities of the value chain, i.e. spinning, weaving, knitting, processing and garmenting)
	General Area	SC / ST / Minority
Capital subsidy	35%	40%
Additional capital subsidy:
- For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
- For new composite unit set up in a taluka not having any Co- operative or Private spinning mill	5%	5%
(iii) Spinning, Ginning, Pressing:
	General Area	SC / ST / Minority
Capital subsidy	35%	40%
Additional capital subsidy:
- For production of Yarn, fabric and other products from non-conventional yarn	10%	10%
- For projects with investment of Rs. 500 crore and above	5%	5%
- For projects with investment of Rs. 500 crore and above. If it is the first project / pioneering project in that taluka)	5%	5%
- For units having Forward/Backward Integration	5%	5%
- For units set up in a taluka not having any existing Spinning mills	5%	5%
(iv) Conversion of -  Old Plain power looms to Shuttle less Rapier looms (or) - Looms based on latest technology (Modernization of Power looms)
	General Area	SC / ST / Minority
Capital subsidy	35%	40%
Additional capital subsidy:
- For projects with investment of Rs. 500 crore and above	5%	5%
- For projects with investment of Rs. 500 crore and above (If it is the first project / pioneering project in that taluka)	5%	5%
(v) - New Power looms based on latest technology (Other than plain Power loom), - Weaving, Preparatory, Warping, Sizing, Conning, Twisting, Doubling, TFO and other textile units (Other than I to IV activities)
	General Area	SC / ST / Minority
Capital subsidy	35%	40%
Additional capital subsidy:
- For projects with investment of Rs. 500 crore and above	5%	5%
-  For projects with investment of Rs. 500 crore and above. (If it is the first project / pioneering project in that taluka)	5%	5%
- For units having Forward/Backward Integration	5%	5%



4. RELEASE OF CAPITAL SUBSIDY :

1^st Instalment - 30% of eligible amount after 12 months from start of production

2^nd Instalment - 30% of eligible amount after 24 months from start of production

3^rd Instalment - 40% of eligible amount after 36 months from start of production