Department of Handlooms and Textiles (2024)

Vision

The State’s New Textile and Garment Policy aims to position Karnataka as a leadingdestination in the Textile and Apparel sector in the country and to make textile valuechain into gold mine value chain. The Policy will provide a stimulus to the textileindustry in the State and aims to generate 5 lakh new employments in the next 5years and attract investments worth INR 10,000 crore.

Mission

To retain Karnataka’s position as the Garment Capital of India and to achieve higherand sustainable growth in the entire textile value chain through capital infusion,technology transfer, world class infrastructure and skill up-gradation.

Policy Target

The New Textile Policy envisages an ambitious investment outlay of INR 10,000crore and aims to generate employment to 5,00,000 people during the policyperiod i.e. 2019 to 2024.

Thrust Sectors:

With an aim to boost the local economy and to create a holistic textile and apparelecosystem in the State the following sectors have been identified as thrust sectors forinterventions in the New Textile and Garment Policy 2019 - 2024 and would includethe following:I. Spinning ii. Weavingiii.Integrated Unitsiv. Processing v. Technical Textiles

Strategies

*) To accelerate growth and increase manufacturing cost competitiveness in theentire textile value chain from fibre to fashion products..

*) To give special focus on spinning, weaving (rapier loom, air jet looms andelectronic jacquard), integrated units, processing and technical textiles asthrust sectors of the policyto create an internationally competitive textileindustry inthe State.

*) To make Karnataka a skill rich State in each segment of t he textile value chainand develop high tech advanced Skilling centers for skilling, re-skilling and up-gradation of skills as per the needs of the industry.

*) To realise “Zero Effect: Zero Defect” at each level of the textile value chain byattracting large scale investments for manufacturing world class facilities and To increase the share of handloom exports and support designing, productdiversification, branding,marketing and distribution of handloom products tod i s t i n c tinternational markets.

*) To position Karnataka as a significant manufacturing hub and a net exporter ofTechnical Textiles

*) To become the retail destination and give a boost to the growth of buying housesDefinition

Enterprise	Textile	Garment
MSME	MSME Enterprise: As per theMSMED Act, 2006, ManufacturingEnterprises have been defined based oninvestment in plant and machinery andclassified into: * Micro Enterprises – investment upto INR 25 lakh. * Small Enterprises – investmentabove INR 25 lakh and up to INR 5crore. * Medium Enterprises – Investmentabove INR 5 crore and upto INR 10crore.	MSME Enterprise: As per the MSMEDAct, 2006, Manufacturing Enterpriseshave been defined based on investmentin plant and machinery and classifiedinto: * Micro Enterprises – investment upto INR 25 lakh . * Small Enterprises – investmentabove INR 25 lakh and up to INR 5crore. * Medium Enterprises – Investmentabove INR 5 crore and upto INR 10crore.
Medium & Large	An industrial unit which is not classifiedas micro, small and medium enterpriseand with an investment up to INR 300crore shall be classified as largeenterprise. Employment : minimum of 200 for thefirst INR 100 crore and additional 75employment for every additionalinvestment of INR 100 croreproportionately.	An industrial unit which is not classifiedas micro, small and medium enterpriseand with an investment up to INR 200crore shall be classified as largeenterprise. Employment: minimum of 2000 for thefirst INR 100 crore and additional 1000employment for every additionalinvestment of INR 100 croreproportionately.
Mega	Projects with an investment in fixed assets above INR 300 crore shall beclassified as mega enterprises. Employment: minimum of 350 forthe first INR 300 crore andadditional 75 employment for everyadditional investment of INR 100crore proportionately	Projects with an investment in fixed assets above INR 200 crore shall beclassified as mega enterprises. Employment: minimum of 3000 forthe first INR 200 crore andadditional 1000 employment forevery additional investment of INR100 crore proportionately.
AnchorEnterprise/Industry(For first twounits only in ataluk)	Textile unit first of its kind in ataluka where no other textile unithas to been set up till thenotification of this policy. Theminimum investment shall be INR100 crores and the unit shall employat least 200 direct employees to beclassified as Anchor Enterprise /Industry.	Garment unit first of its kind in ataluka where no other garment unithas to been set up till thenotification of this policy. Theminimum investment shall be INR50 crores and the unit shall employat least 1000 direct employees to beclassified as Anchor Enterprise /Industry

Incentives Offered

In order to develop the textile sector in the State, the forth coming Textile andGarment Policy i.e. 2019-2024 would provide support to the industries for investing inthe different value chain of the textile sector by providing incentives. The scheme ofincentives, their objective, eligibility, and components to be funded and fundingpattern are detailed herein:

1 ]

Textile

MSME Enterprise

Large Enterprises

CapitalSubsidy

Segment

Thrust Sectors

Others

Zone 1

30%

25%

Zone 2

25%

20%

Zone 3

20%

15%

Zone 4

Segment

Thrust Sectors

Others

Zone 1

25%

20%

Zone 2

20%

15%

Zone 3

15%

10%

Zone 4

Additional Subsidy

Additional 5% capital subsidy on the value of Fixed Assets for SC/STpersons/ Persons with disabilities / Minority / Ex- servicemen / Women

Garment

MSME Enterprise

Large Enterprises

Capital Subsidy

Segment

Garmenting

Zone1

Large Enterprises

Textile

Garment

Interest Subsidy

Segment

Zone1

Zone2

Zone3

Zone4

Segment

Zone1

Zone2

Zone3

Zone4

Thrust Sectors

Others

5% per annum Interest Subsidy on Term Loans for the first 5 years

Garment
ing

5% per annum Interest Subsidy on Term Loans for the first 5 years

3 ]

Textile

Garment

MSME Enterprises

Large Enterprises

Micro &Small Enterprises

Power Subsidy

Segment

Spinning

Weaving

Integrated Units

Processing

Technical Textile

Others

Use of non-conventional/renewablesources ofpower

zone 1,2,3

INR.2

INR.1/-

INR.2/-

zone 4

Textile & Garment

MSME and Large Enterprises

Segment

Stamp DutyExemption andConcessionalRegistrationCharges

All Zones Except Zone 4

Stamp Duty Exemption and concessionalregistration charges rate of INR 1.00 perINR 1000.

Zone 4

5 ]

ESI & EPFReimbursem*nt

Textile & Garment (MSME)

Segment

Thrust Sectors

Garmenting

Others

All Zones Except Zone 4

75% reimbursem*nt of employers contribution of wage rate per employee per \ month for all the new units for a period of 5 years as EPF and ESI subsidy

Zone 4

6 ]

WageSubsidy

Medium and Large Enterprises

Segment

Garmenting

Zone 1

INR.3000/- per employee

Zone 2

per employee

Zone 3

INR.2000/-

Zone 4

7 ]

EffluentTreatmentPlant

Existing and New Textile units

All Zones

In order to promote green measures for cleaner andenvironment friendly technologies and to encourageZLD measures 50% capital subsidy or INR 5 crorewhichever is less for establishment of EffluentTreatment Plants (ETPs), will be provided across alllocations in the State for integrated and processingunits

8 ]

CommonInfrastructureforGreenfieldParks

Greenfield

All Zones

(a) The Individual Legal Entity / SPV would be provided one time grant support for the development of common infrastructure for Greenfield Parks of up to 40% of the project cost orINR 40.00 crores per Park project, whichever is less irrespective of the Zones they are in.

(b) Projects approved and are being funded under any Central Government Scheme may receive fresh approval under such schemes, where only an additional 10% of the Project cost will be provided as supplementary State Government incentive to such Park Projects.

CommonInfrastructureforBrownfieldParks

Brownfield

All Zones

The individual / SPV will be provided one time grant toBrownfield cluster, up to 40% of the Project Cost or INR12.00 crores per industrial estate project, whichever isless irrespective of the Zones they are in.

9 ]

CommonEffluentTreatmentPlant andHazardouswasteDisposalfacility

All Zones

(1) The one time grant support will be provided to theIndividual / SPV of up to 50% of the project cost and incase of Handloom projects, the subsidy would belimited to 80% of the project cost.

(2) In case of the projects being funded under any schemeof Government of India, the subsidy would be limitedto 20% of the project cost or INR 5.00 crores,whichever is less.

10]

Centre ofExcellence

Grant of INR 10 crore for setting up Centerof Excellence for Textiles / Technical Textiles will befunded by the State Government.

11]

Human Resources Development & Skill Up-gradation

Up-gradationof TextileInfrastructure

Up-to INR 1 crore funding support will be provided to theinstitutions who are into the academics/skilldevelopment in the textile value chain, for up-gradationof training facilities in the campus. Funding support willbe provided to the institutions on the basis of approvedDPR which should justify the textile infrastructure up-gradation. Three institutions will be supported for thetextile infrastructure up-gradation, during the policyperiod.

Strengtheningof ExistingInstitutes/SkillDevelopmentCentres(SDCs)

Funding interventions by Department of Handlooms& Textiles would include support towards trainingcost would be INR 9500 for SDCs and INR 11000 forPrivate centers per beneficiary for 45 days. Thedetailed segregation of the training cost would be asfollows:

* Training Beneficiary Stipend- INR 3,500

* Support towards Raw Materials-INR 1,000

* SDCs and INR 6,500 for private trainingcenters.

Support toNew ProjectImplementationAgencies

Support towards the training cost shall be INR 11,000per beneficiary.

12]

Capacity building support

MarketDevelopmentandBranding

Reimbursem*nt of 50% of the cost of proposedinterventions or INR.50 lakhs, whichever is less

DesignDevelopment

Reimbursem*nt of 50% of the cost of proposedinterventions or INR.25 lakhs, whichever is less.

Standards &compliancesSpecificTextile Zonesin BackwardsAreas

Reimbursem*nt of 50% of the cost of proposedinterventions or INR. 5lakhs, whichever is less

13]

SpecialPackageforMega Units

The Department of Handlooms & Textiles intends topromote and facilitate Mega Projects units in Textilesand Garments which would have multiplier effect andwould be integral to the employment generationactivity and inclusive sector development in theState. Case to Case Package of incentives /concessions will be considered for deserving MegaEnterprises Units over and above the incentives /concessions mentioned for Large Enterprises as perthe following.

DefinitionofMega Units

Textile

Garment

Projects with aninvestment in fixedassets above INR300 crore shall beclassified as megaenterprise

Projects with aninvestment in fixedassets above INR200crore shall beclassified as megaenterprise.

Employment: minimumof 350 for the first INR300crore and additional75 employment for everyadditional investmentof INR 100 croreproportionately.

Employment: minimumof 3000 for the first INR200 crore and additional1000 employmentforevery additionalinvestment of INR 100crore proportionately.

14]

AnchorIndustry

Textile

Garment

Industry first of itskind in a taluka wherethere are no textileindustries with aninvestment of INR 100crore shall be classifiedas Anchor enterprise.Employment: minimumof 200

Industry first of itskind in a taluka wherethere are no garmentindustries with aninvestment of INR 50crore more shall beclassified as Anchorenterprise.Employment: minimumof 1000

Cap onIncentive

The total incentives drawn as per provisions under the policy shall not exceed 100% CAP of Fixed Capital Investment (FCI) for Large and MSME units in Kalyana Karnataka and Non Kalyana Karnataka Region.

Additional incentive of 5% on Fixed CapitalInvestment (FCI) for Thrust Sector Units.

Additional incentive of 5% on Fixed CapitalInvestment (FCI) for Anchor Units set up across the state

Additional incentive of 5% on SC/ST Entrepreneurs /Persons with disabilities / Minority / Ex-servicemen /Women, over and above the standard package..

Policy Framework – New Textile and Garment Policy 2019-2024

To make Textile and Garment Sector in Karnataka Competitive following initiatives have been taken up:
Man Power Development
Infrastructure Development
Capacity Building
Institutional Linkages
Fiscal Incentives
Professional Handholding
Strengthening of Value Chain
A new encompassing Policy for the sector covering all value chain of textiles
Single Window Clearance for Mega & Cluster Projects.

Title	Details
Click here to know	Textile Policy 2013-18 /New Textiles Policy 2019-24
Click here to know	Karnataka-Destination for world textile and garment industry