The textile sector plays a key role in the Indian economy by providing significant contribution to economic growth. Textile sector contributes 14% to industrial production, 5% to India’s GDP and constitutes 13% of the country’s export earnings. Andhra Pradesh is ranked 7th in terms of cotton production in India with a production of 19 lakhs bales in 2016-17.
Government of Andhra Pradesh, industries and commerce department under its program II dated 12-09-2018, introduced ‘The Textile, Apparel, and Garments Policy 2018-2023’ to create an enabling ecosystem for establishment of textile value added activities in Andhra Pradesh.
After careful evaluation of performance of the existing policy, though the State has been able to attract considerable investment from major Textile manufacturers, not much progress was achieved in terms of value added textile activities The new textile policy for a period of 5 years from 2018-23 is a successor to the previous textile policy.
1) Convert the major portion of yarn produced in the State into Fabric and Garment’s.
2) Promote the State as a destination for global textile majors.
3) Attract new investments in value added Textile activities worth Rs.15,000 Crores by 2023.
1) New Enterprises set-up in the industrial parks /standalone locations will get 50% of the Land cost or 5% of the project cost, whichever is less.
2) External Infrastructure for Standalone Projects not allotted land:-
a) Other than mega and ultra-mega- 25% of the External infrastructure cost
limited to Rs.1 Crore.
b) Mega- 25% of the External infrastructure cost limited to Rs.3 Crore.
c) Ultra Mega- 25% of the External infrastructure cost limited to Rs.5 Crore.
New and expansion projects will be eligible for capital subsidy as follows:
| Sr.No | Category | Particulars |
|---|---|---|
| 1 | Units other than Mega and Ultra Mega | 20% of FCI limited to Rs.15 Crores |
| 2 | Mega | 20% of FCI limited to Rs.30 Crores |
| 3 | Ultra Mega | 10% of FCI limited to Rs.50 Crores |
| Sr.No | Category | Particulars |
|---|---|---|
| 1 | Units other than Mega and Ultra Mega | 50% of FCI limited to Rs.20 Crores whichever is lower |
| 2 | Mega | 50% of FCI limited to Rs.30 Crores whichever is lower |
| 3 | Ultra Mega | 50% of FCI limited to Rs.50 Crores whichever is lower |
The policy will come into operation from date of its issue and shall remain in force until 31st March 2023. The eligible industries availing incentives under Textile and Apparel Policy 2015-20, may continue to avail incentives under the earlier policy or opt for the incentives under this new Policy for the remaining eligible period.