'Incentive policy' for 1st 2K powerlooms to be set up in state from January 1

KOLKATA: The state Micro Small & Medium Enterprises (MSME) department has come out with the 'Powerloom Incentive Policy' with an aim to extend fiscal incentives for installation of new-age shuttleless powerlooms by MSMEs in textile sector with a view to boost production of the improved quality fabrics and to create a sustainable ecosystem for MSMEs in textile sector.

"The first 2000 powerlooms which will be set up in the state beginning from January 1, 2022 will get the benefits of the incentive policy. Those who will be interested to produce fabric (cloth) abiding government norms will be provided with thread by Tantuja which will purchase the fabric from the producers," Chandranath Sinha, Minister in charge of state MSME & Textiles department said addressing at the 120th annual general meeting of MCCI on Thursday.

The MSMEs in the powerloom sector have to execute a four-party agreement between the enterprise, Tantuja, Directorate of Textiles & Financial institution (bank).The terms and conditions as a part of this agreement will be prescribed by the state MSME in due course of implementation of the scheme.

The units may be in the private sector, cooperative sector and joint sector undertaking as also companies/undertakings owned and managed by the state government and the Industrial SHGs. Facilities of bank loans will be available and under the scheme 20 percent financial assistance of the capital amount will be provided by the state government for purchasing the powerloom.

Sinha said that in a bid to make the state self-reliant in fabric production, the state government has taken steps to set up some integrated textile parks, one of which is coming up at Kalyani in Nadia on 43 acres of land.

The basic infrastructure of roads, water and electricity in these parks will be provided by the government.

"The main aim of the government is to produce self dependent garment production, particularly school uniforms for children. A number of powerloom co-operative and readymade garments co-operatives are being set up. Tantuja has already signed an agreement with 20 entrepreneurs regarding fabric production for school uniforms. More such entrepreneurs will be on board in the next few days, " he added. State Industry & IT minister Partha Chatterjee who addressed the meeting virtually said that the government is focused on developing the industrial sector in Bengal and asked for greater cooperation from associations and chambers in this regard.