The Telangana Government has announced a slew of sops, including capital subsidy, to boost the textiles and apparels sector in the State. The sops are part of the Telangana Textile and Apparel Incentive Scheme 2017 announced by the TRS Government with an aim to attract investments and generate job opportunities for the local population.
According to a government order (GO) issued recently, the capital and operational incentives for the textiles and apparels industry will be applicable for both new as well as existing units for the next five years. “The incentives proposed here under shall be operative for a period of five years from the date of notification and will cover all new and existing units.
“While the government is keen to encourage industry with the primary objective of attracting investments and generating employment opportunities for the local population, it is hereby clarified that it expects the industry to provide a fair and decent wage to the workforce,” the GO said. The government said units not adequately compensating the workers will face action.
“If it is brought to the notice of the government that the workers are not being adequately compensated, or are exploited, then it shall have the right to terminate the approvals granted and recover the monetary value of the incentives accorded till then,” the GO said.
It said VAT/CST/SGST reimbursement is available for tax collected on end product/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 the eligible fixed capital investment, whichever is earlier.
Existing units which undergo expansion/ modernization/diversification will be entitled to get similar benefits under this clause, it added. A capital subsidy of 25 per cent will be provided for conventional textile units and 35 per cent for technical ones involved in production of medical textiles, geotextiles, agro textiles and protective clothing, among others. For units established with an investment of Rs. 200 cr or above or providing more than 1,000 jobs, the incentives will further be customised, the GO said.