Chief Minister Chandrababu Naidu has unvealed a textile policy with the aim of creating employment opportunities for 2 lakh people in Andhra Pradesh. It has announced incentives to attract investments of Rs. 10,000 crore in this sector. It has released guidelines on subsidies for small and large investors.
It has expressed readiness to provide incentives for weaving, processing, textiles as well as integrated units. It has made it clear that capital subsidies and additional incentives will be provided to SC, ST, BC, minorities and women. A new policy has been formulated to be implemented for five years (2024-29) to create wide employment opportunities for women from the lower classes and make AP a destination for investments in the textile industry.
As part of this policy, the government will provide electricity to the textile industries on subsidies. It will fully reimburse the land conversion fee while providing 50 percent of the land development fee allocated for the establishment of the industry. 50% subsidy on the cost of electricity, water and road development, not exceeding a maximum of Rs. 1 crore.
Interest subsidy of 8% per annum on a five-year term loan, 50% subsidy on duty charge of Rs. 100 per unit of electricity for five years from the date of commencement of commercial production. Land stamp and transform duty provided to textile units will be reimbursed along with 100% stamp duty.
The government will refund SGST payable by MSMEs to large units on sales of final products manufactured in the state within five years from the date of commercial production. 75% of the cost of water audit and one-time settlement of Rs. 1 lakh to 2 lakhs of the cost of energy audit will be provided. It has been announced that 50% (up to Rs. 10 lakhs) of the cost of obtaining a textile patent will be provided.
There will be a monthly employment subsidy for five years for large, mega and ultra mega projects. This subsidy will be reimbursed at the rate of 75 percent of the amount paid to ESI and EPF. There will be three types of incentives for industries on fixed capital investment.
Rs. 20 or Rs. 15 crores will be given for large projects, 20 or Rs. 30 crores for mega projects, and Rs. 20 or Rs. 50 crores for ultra mega projects. BC women, SC, ST and Divyang will get an additional 10 percent FCI, 5 percent for BCs and 10 percent for entrepreneurs with special abilities, the government explained in the new policy.
