Ficci welcomes UP Govt Draft Textiles Policy

New Delhi: L K Jhunjhunwala, Chairman, FICCI UP State Council and S K Khandelia, Co-chairman, FICCI Textiles Committee on Tuesday attended the meeting called by the Uttar Pradesh Chief Minister Yogi Adityanath, to discuss the draft textile policy for the State.

S K Khandelia welcomed the Draft Textiles Policy of UP which shall set the vision for the sector in the State. Prior to the release of the draft policy, FICCI had submitted detailed suggestions to the UP Government for formulation of a vibrant and competitive Textiles Policy.

Commenting on the Draft Policy, Khandelia said "It is heartening to see that many of the suggestions submitted by FICCI like Open access for existing as well as new units, capital subsidy for new and existing units over and above TUFS, interest subsidy over and above Central Government's subsidy for technology upgradation have been included in the draft Policy. All this would help in attracting investments in the sector in value added segments".

Jhunjhunwala said "UP has abundant labour force that currently is largely employed in the industry outside the State. This policy has the potential to provide jobs to millions of natives as it is a labor intensive sector".

There were other suggestions also made by FICCI which the State Government may like to consider. These are:

Higher subsidy on electricity tariff: 1.5 per unit power subsidy in tier 1 cities/ areas, 2 per unit power subsidy in tier 2 cities / areas and 2.5 per unit power subsidy in tier 3 cities/areas. Rs 20 crore subsidy for each cluster/park in addition to the Central Government's subsidy of Rs 40 crore under Scheme for Integrated Textiles Park (SITP). Capital Subsidy by State Government for Technical Textiles sector (It needs to be clarified). The State Government to provide 50% of the CETP project cost or Rs 20 crores whichever is less for setting up a CETP in new or existing textile parks/ clusters.