Handloom and Textiles
Sector Overview :
The Government of Uttar Pradesh is determined to provide a favourable ecosystem and promote Indian Textiles & Apparel Industry to make them competitive with Industries from the leading textile & apparel exporting countries.
Sector Overview
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- 3rd Largest Textile Producer in India.
- 5th Largest Producer of Silk in India.
- 5th Largest Base of Handloom in India.
- Largest Exporter of Handmade Carpet in India.
Objectives
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- Attract investment for creating new job opportunities.
- Promote Make in India and meet domestic demand for textiles.
- Promote development of textile industry in backward areas.
- Ensure rapid availability of skilled labour in Textile industry.
Enablers
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- 85 Spinning Mills.
- 74 Textile Mills -in Non SSI Sector.
- 47 Approved Textile Parks/Clusters.
- 15 Major Handloom Production Centre.
Investment and Fiscal Incentives
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Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
- Land Cost Subsidy : A subsidy of 50% percent of the cost of land (except Gautam Budh Nagar district) on purchase of land from Government Authorities.
- 100% stamp duty exemption on land purchased/leased from government authorities within UP (except 75% in Gautam Budh Nagar district).
- 100% exemption from stamp duty will be admissible to developers of textile park/estate for purchase of land in the State (except in GB Nagar district). Exemption of 50% from stamp duty will be made available to the first buyer of every plot/unit to be set up in that textile park/estate.
- 100% Exemption from electricity duty will be given to new units for 10 years.
- A capital subsidy of 25% of plant and machinery will be given to textile and garmenting industries as per the investment caps mentioned in the policy document.
- In addition to the above, additional capital subsidy of 10 percent to the units setting-up in Bundelkhand region of the state and generating employment more than 50.
- Infrastructure subsidy @50% of the project cost for developing self-use road, drainage & water supply, and power supply, ETP & DG Sets.
- Infrastructure subsidy @ 25% of the project cost for developing an In-house training facility, Testing laboratory, Quality Certification Labs, R&D Centre, staff quarter, worker’s hostel/dormitory.
- Interest Subsidy on Plant & Machinery @60% of the annual interest amount on loan taken for purchase of plant and machinery eligible under the TUFS / ATUFS Scheme subject to maximum limit 1.5 Crore per annum per unit (except GBN district).
- 100% exemption from electricity duty to the new textile and garmenting units for a period of 10 years.
- Substantial reimbursement of freight cost from unit to port, will be provided to new Garmenting units, for a period of 5 years.
- Working Capital Subsidy: Silk reeling units which produce minimum 75% thread from koya produced in Uttar Pradesh will be eligible for interest subsidy at the rate of 5% on Working Capital Loan for a period of 5 years. The maximum limit of this will be Rs 50,000 per annum.
- Various perks and EPF reimbursements shall be provided under Employees Provident Fund Scheme Reforms / Pradhan Mantri Rojgar Protsahan Yojana to promote the export of Garments, reimbursement on freight from unit to port, will be provided to new units; 75% for first 2 years, 50% for the next 2 years, 25% in the 5th year.
