Lucknow: With an aim to make Uttar Pradesh textile hub in country, the Yogi Government had showered rebates, concessions and subsidies on it.
The New textile and garment policy of UP has offered subsidies on the employment of workers on monthly basis besides giving capital subsidy, rebate in electricity bills, exemptions in stamp duty and many more.
The UP Government has also announced to give freight subsidy on exports and meet part of the marketing cost in the new policy. The Additional Chief Secretary (ACS), Textile Department Amit Mohan Prasad while releasing the policy said that it would create more job opportunities in the state. As per the policy, the new textile units would be given Rs 3200 per worker per month subsidy for five years. This would be given only on the basis of number of workers enrolled under the Employee Provident Fund (EPF) scheme.
As per the new policy, the investors setting up units in industrial areas developed by the state government would be given 25 per cent subsidy of the total cost of the land. However, this subsidy would be 15 per cent in case of the new units being established in Noida. The units coming up under the union government projects of PM Mitra Textile Parks in Lucknow and Hardoi, UP would also get this subsidy on land cost. The Yogi Government has also decided to give 100 per cent exemption in stamp duty to those setting up textile and garment units anywhere in the state except Noida. The investors setting up units in the textile parks developed by private sector would get 50 per cent exemption in stamp duty.
Under the new textile policy, capital subsidy of 25 per cent on the purchase of plant and machinery has been announced for the new units. However, an additional 10 per cent capital subsidy would be provided to the units being set up in east UP and Bundelkhand. The maximum limit for this subsidy has been kept at Rs 100 crore per unit. The state government would compensate 60 per cent of the interest paid to banks on the loan taken by the new units for the purchase of plant and machinery. This interest compensation would be given for seven years with a maximum limit of Rs 1.5 crore every year. All the new textile and garment units coming up in UP would be given 100 per cent exemption in the electricity duty.
