Top 5 Textile Policies by Textile Ministry You should Know

Textile Ministry under Government of India is pushing textile manufacturing in India to generate employment and support the export based production. Textile Ministry is trying to align itself with Make in India initiatives. TextileTriangle bring you major textile policies being run by Textile Ministry, that every textile professional should know:

1. Scheme for Integrated Textile Park (SITP)

SITP is launched to build world class textile manufacturing infrastructure in India. SITP was launched in 2005. SITP was aimed to set up textile manufacturing units under PPP (Public Private Partnership) model.
Objective of SITP is to provide the industry with world-class state of the art infrastructure facilities for setting up their textile units and attract foreign investors to the domestic textile sector. Each Integrated textile park under this scheme normally have 50 units.
GoI is also providing funding support to start the projects maximum upto 40 crores. Currently 1947 units are operational across the country under SITP scheme. Out of 1947 units, 454 units are operational in South Region, of which 42 units are operational in the State of Karnataka.
SITP Official Document

2. Scheme for Incubation in Apparel Manufacturing (SIAM)

The Government is implementing the Scheme for Incubation in Apparel Manufacturing (SIAM) which was launched on pilot basis in January 2014. The Scheme is a demand driven scheme. The objective of the Scheme is to promote entrepreneurs in apparel manufacturing by providing them an integrated workspace and linkages based entrepreneurial ecosystem with plug and play facility which help them in reducing operational and financial cost for establishing and growing a new business. The scheme envisages promoting entrepreneurship in apparel manufacturing, creating additional manufacturing capacity and generating additional employment opportunities. Three projects have been sanctioned by the Government one each in the States of
1. (Gwalior) Madhya Pradesh,
2. (Bhuvneshwar) Odisha and
3. (Panipat) Haryana.

3. Production Linked Incentive (PLI) Scheme

The PLI Scheme is intended to promote production of MMF Apparel & Fabrics and Technical Textiles products in the country to enable textile industry to achieve size and scale; to become globally competitive and a creator of employment opportunities for people. The scheme is to support creation of a viable enterprise and competitive textile industry. The central government has designated nearly Rs 11000 Crore to fulfill the objectives of the PLI schemes. The Scheme is in operation from 24.09.2021 (Date of Notification) to 31 st March 2030 and the incentive under the Scheme will be payable for a period of 5 years only.

Production Linked Incentive (PLI) Scheme for textiles for Man Made Fibre Fabrics & Apparel, and Technical Textiles has been launched in 2021-22. It is expected to attract investment of Rs. 19000 crore for manufacturing of notified product of the sector and will be able to provide employment opportunity for 7.5 lakh persons.

Read more about PLI Scheme
Textile PLI Scheme Official Document

4. PM Mega Integrated Textile Regions and Apparel (MITRAs) Parks Scheme

Ministry of Textiles has issued a notification to set up 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks with a total outlay of Rs. 4,445 crore. It is hoped that the PM MITRA Parks will have world-class industrial infrastructure which would attract cutting age technology and boost FDI and local investment in the textiles sector.

Ministry of Textiles (MoT) has launched PM Mega Integrated Textile Regions and Apparel Parks (MITRAs) Scheme to strengthen the Indian textile industry by way of enabling scale of operations, reduce logistics cost by housing entire value chain at one location, attract investment, generate employment and augment export potential. The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry.
State governments can send proposal to central government to set up Mega Textile Parks in their state. The State government will have to provide minimum 1000 acre land to develop Textile Park in Joint Venture under the name of Special Purpose Vehicle (SPV). State Govt. will hold 51% equity and Central Govt. will have 49% equity in the textile park development project.

PM Mega Integrated Textile Regions and Apparel (MITRAs) Parks Scheme to set up 7 Mega Textiles Manufacturing Parks in the country has also been launched in 2021-22. This will reduce logistics cost and will improve Competitiveness of Indian textile manufacturing. Once completed each park is expected to provide employment to 1 lakh persons directly and 2 lakh persons indirectly.
Read more about PM MITRA Scheme for Textile Parks

5. Amended Technology Up-gradation Scheme (ATUFS)

ATUFS is aimed towards technological up-gradation of textile industry machinery. Advanced machinery in textile industry improves quality of products and reduces the manufacturing cost, which will benefit textile sector of India to compete in global market. With Aim of ‘Make in India’ and ‘Zero Defect and Zero Effect’ in manufacturing, the government provides credit linked capital investment subsidy. This scheme would facilitate augmenting of investment, productivity, quality, employment, exports and import subsitution in textile industry. It will also indirectly promote investment in textile machinery manufacturing.
Following sectors are eligible to avail benefits under ATUFS:
* Weaving, Weaving Preparatory and Knitting
* Processing of fibres, yarns, fabrics, garments and made up
* Handloom sector
* Silk Sector
* Jute Sector
* Garment / Made up manufacturing
* Technical Textiles

Sr No	ATUF Segment	Rate of Capital Investment Subsidy (CIS)
1	Garmenting, Technical Textiles	15% subject to an upper limit of Rs. 30 crores
2	Weaving for brand new Shuttle less Looms (including weaving prepatory and knitting), processing jute, silk and Handloom	10% subject to upper limit of Rs 20 crore
3	Composite units/Multiple segments – If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost.	15% subject to an upper limit of Rs 30
4	Composite Unit/ Multiple segments – IF the eligible capital investment in respect of Garmenting and technical textiles category is less than 50% of the project cost.	10% subject to an upper limit of 20 crores.

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