Government of Jharkhand (GoJ) aims to promote and develop a robust textile and apparel & Footwear industry that provides sustainable employment to weavers and posits Jharkhand as a destination of choice to global textile majors. The policy aims to modernize textile manufacturing and improve productivity in order to ensure availability of quality fabric at affordable prices to cater to domestic and international demand.
Vision:
(a) To establish the textile and garment industry of Jharkhand, as a producer of internationally competitive value added products thereby maintaining dominant presence in the growing domestic and international market and contributing to the sustainable employment and economic growth of the State
(b) To reinforce the value chain of the textile industry across the State through capital infusion, technology
transfer, skill up-gradation and handholding
Objectives:
To achieve higher and sustainable growth in the entire textile value chain from fibre to finished products, with emphasis on balanced regional development:
strengthening and enhancing capacity of all the essential value chain activities such as Spinning, Weaving (Handloom and Powerloom) including pre loom activities, Knitting, Processing, Garmenting, Technical Textiles and other supporting ancillary activities including Textile Machinery Manufacturing
Promoting well- being of the cooperative sector spinning mills
Supporting and strengthening the power loom sector in order to modernize production technologies, enabling supply of good quality fabrics in the required quantum
Making Information Technology (IT) an integral part of the entire value chain of textile production and thereby facilitate the industry to achieve international standards in terms of quality, design and marketing
To equip the Industry to withstand pressures of import penetration and maintain a dominant presence in the domestic market
To liberalise controls and regulations so that the different segments of the textile industry are enabled to perform in a greater competitive environment
To facilitate emerging Technical Textiles in critical areas such as production, technology and research and development. The Policy will encourage integrated development in the sector aiming to sustainability of the textile units in the State
To support the industry with skilled human resource and to create at least 5 lakhs new employment opportunities in the State under the Policy period:
Strengthening the process of bridging the skills gap by providing better institutional linkages, creating a good pool of trainers by conducting Training of Trainers and the Assessment and Certification process to ensure the quality of training program
Infrastructure development to make Units globally competitive and meet the export compliance through Cluster based Textile Parks, Mega Projects and CETPs etc.
Fiscal Incentives
§20% Capital Subsidy with Upper Cap of INR 50 Cr
§7% p.a. Interest Subsidy or 50% of interest per annum with Max. cap of INR 1 Cr for 7 year
§Employment Generation Subsidy: 5000/month/worker for 7 year, For ST/ST (Men/Women) INR 6000/month/worker.
§Reimbursement of INR 1000/person/month for 5 Year on ESI/EPF Contribution
§INR 13000 one time (per worker) for training/skill development
§Land: 50% rebate on land cost that will be paid during 5 year in 10 equal installment
Land: 50% rebate on land cost that will be paid during 5 year in 10 equal installment
Fixed Capital Rebate
Capital Investment Subsidy (CIS)
Units shall be entitled to get CIS for investments made in fixed capital investment. Subsidy under CIS shall be admissible at the rate of 20% of investments made in fixed capital investment with an upper cap of Rs 50 crore.
SC/ST/Women/Handicapped Entrepreneurs will avail 5% additional benefit under CIS. This benefit shall be applicable only to residents of Jharkhand. For the purpose of this clause, those persons will be eligible for benefit under SC/ST category that are issued caste / residential certificate to this effect by competent authority, not below the rank of SDO, in the State of Jharkhand. Similarly, those persons will be deemed to be of handicapped category that are certified by a competent Medical Board to have handicap of more than 40%.
Only one time subsidy under CIS category will be provided to the industries. The State government incentive under Capital investment subsidy shall be in addition to Capital investment subsidy provided under ATUFS scheme of Government of India.
Stamp Duty Exemption
100% reimbursement of stamp duty and transfer duty paid by the industry will be allowed for execution of lease, lease cum sale or sale deeds in respect of industrial land / plots/ sheds allotted or purchased by industry and Execution of Lease Deeds in case of Industrial Area Development Authority (IADA) lands/ plots taken on lease.
SGST Reimbursement
New units will be given incentive of 100% NET SGST payable
Skill Development/ Training Incentive
Skill Development
One-time support of Rs. 13,000 or actual cost of training per person, whichever is lower, for capacity building of persons belonging to Jharkhand (skilled/semi-skilled) engaged in the sector (Any other category notified by the Government) as per notification of Jharkhand Skill Development Mission Society.
Also, the State shall provide Employment generation subsidy of Rs. 5,000 per month per worker for 5 years for capacity building of workers. For SC/ST/Women, this subsidy will be Rs 6,000 per month per worker for 5 years
In addition to this, the state shall reimburse up to Rs. 1000 per person per month to towards expenditure on ESI and EPF, subject to maximum of Rs. 2 Crore.
Interest Cost Subvention
7% p.a. Interest Subsidy or 50% of interest per annum with Max. cap of INR 1 Cr for 7 year
Power Tariff Rebate
Power Tariff
State shall provide reimbursement of 50% of power tariff for 5 years from the date of release of electricity connection
Electricity Duty Rebate
Electricity Duty
State shall provide 100% exemption for 5 years from the date of release of electricity connection.