The aim of the new policy is to protect the interests of cotton farmers, improved price realisation in domestic and global markets along with value addition in the complete chain. It offers series of incentives that consist exemption in VAT (value-added tax) to the extent of 80-100% for 10 years time span.
The other incentives consists conditional exemption in electricity tariff along with stamp duty on plant land and machinery, help in infrastructure development. .
In regard to apparel parks and textile facilities, Gujarat government will provide 50% of the cost of infrastructure or Rs 10 crore maximum as help.
Minister of State (MOS) for Industry and Mines and state government Spokesperson Saurabh Patel said, “The new textile policy is expected to attract investments of over Rs 20,000 crore and create new employment opportunities for over 25 lakh people, 50 per cent of them being rural women, during the next five years period. This will also increase the state’s revenue and growth rate along with growth of the textile industry.”
The state government has kept aside Rs 70.46 crore for direct help to the textile industry.