Karnataka government offers Kitex incentives to invest in the state
The Karnataka government has formerly reached out to garment and textile business Kitex to offer numerous incentives in a bid to get the business to make its Rs 3,500 crore ($526 million) investment in the state.
“I am formally reaching out to you to understand Kitex's upcoming investments plans in detail and showcase Karnataka's interest in having Kitex Garments manufacture in the state,” wrote the Karnataka government’s Commissioner for Industrial Development and Director of Industries and Commerce Gunjan Krishna in an email to Kitex chairman, Sabu Jacob, on Monday, TNN reported.
Incentives proposed by the Karnataka government to Kitex include a 25% capital investment subsidy without cap on fixed assets including buildings, land, and machinery, among others, as well as an investment subsidy for anchor industries up to Rs 7 crore to Rs 10 crore. The state government has also offered the textile giant 100% exemption from stamp duty, a 50% subsidy on fixed capital investment in pollution management (CETP) up to Rs 5 crore, and numerous other incentives.
Karnataka is a major hub for textile production, and this is another reason why the state government is attempting to woo Kitex. The business is based in Kerala and is named after the location of its factory in Kizhakkambalam. However, following what the business describes as harassment by local officials, it has decided to take its proposed Rs 3,500 investment earmarked for the textile industry elsewhere. Numerous states are vying for the investment including Tamil Nadu, which has also sent a formal offer to the business.
Copyright © 2022 FashionNetwork.com All rights reserved.