Telangana announces sops for textile, apparel sector

The Telangana government recently announced a string of incentives, including capital subsidy, for the next five years for new and existing enterprises to boost the textiles and apparels sector in the state. Part of the Telangana Textile and Apparel Incentive Scheme 2017 announced last week, the sops aim to attract investment and generate job opportunities.

Expecting the industry to provide a fair and decent wage to the workforce, the government order announcing the scheme said textile units not adequately compensating workers will face action.

A capital subsidy of 25 per cent will be offered to conventional textile units and 35 per cent to technical ones that manufacture medical textiles, geotextiles, agrotextiles and protective clothing.

Reimbursement of value added tax, sales tax and goods and services tax is available for tax collected on end products and intermediates within the entire value chain — from cotton to garment and made ups — to the extent of 100 per cent for a period of seven years from the date of commencement of commercial production or up to realisation of 100 per cent fixed capital investment, whichever is earlier.

For units established with an investment of Rs 200 crore or above or providing more than 1,000 jobs, the incentives will further be customised, the order said.

The entire stamp duty or transfer duty paid during purchase of land meant for industrial use or during lease of land or premises will be reimbursed. There is also a provision of reimbursing freight charges towards import of raw materials and export of finished products, either by rail or road, from the project location to the port and assistance in design, product development and diversification.

In government textile parks, the state will take complete responsibility for providing a common effluent treatment plant for use by individual industrial units. There are also incentives to facilitate return of weavers from Telangana who have migrated to other states.