Question : Employment Generation through Textile Sector

(a) the details of measures taken by the Government to boost textile sector in the country;

(b) the details of funds and other incentives being made available to textile industries including details of funds sanctioned to States, particularly West Bengal for the purpose during the last three years; and

(c) the details of employment likely to be generated through textile sector by 2022?

Answer given by the minister

MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)

(a) to (c): The government has taken number of measures/incentives to boost textile sector and generate employment in the country as a whole including West Bengal. Measures taken inter-alia include the following:-

(i) Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment generation of around 1.11 crore jobs and exports in the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
(ii) Amended Technology Upgradation Fund Scheme is being implemented to upgrade technology/machineries of textile industry with an outlay of Rs.17,822 crore during 2016-2022 which will attract investment of Rs.1 lakh crore and it is estimated to generate employment for about 35 lakh persons in the textile sector.
Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU): Ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivize production and employment generation in the textile sector.
(iii) RoSCTL:- To boost exports, Govt. has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/ Made-ups with effect from 07.03.2019, in addition to the duty Drawback scheme. Government has also notified a special one-time additional ad-hoc incentive upto 1% of FoB value to be provided for exports of apparel and made-ups to offset the difference between RoSCTL and RoSL + MEIS @4% from 7.3.2019 to 31.12.2019.
(iv) To boost exports in the MMF sector, Government has removed anti-dumping duty on PTA, a key material for the manufacturing of MMF fibre and yarn.
(v) Merchandise Export for India Scheme (MEIS): This scheme was introduced under Foreign Trade Policy 2015-2020 to offset infrastructural inefficiencies and associated costs involved in export of goods/products to enhance India’s export competitiveness.
(vi Market Access Initiative (MAI) is formulated on product focused country approach to evolve specific market and specific product through market studies/survey. Interest equalization rate for pre and post shipment credit for exports by MSMEs of textiles sector has been enhanced from 3% to 5% w.e.f 02.11.2018.
(vii) Scheme for Integrated Textile Park (SITP): Under the Scheme, Government provides 40% subsidy with a ceiling of Rs.40 crore to set up Textile Parks for infrastructure creation and employment generation.
(viii) A separate scheme for development of Knitting and knitwear has been launched recently to boost production in knitting and knitwear clusters which provide employment to nearly 24 lakh persons.
(ix) Jute ICARE for increasing the income of farmers by at least 50% various incentive are given through promotion of certified seeds, better agronomic practices, use of microbial re-using of Jute plant, retting to produce quality of jute, increase productivity and to reduce the cost of jute production for the jute farmers.
For modernization of Jute Industry an incentive of 20% of the cost of the new machinery for Jute Mill and 30% JDB-MSME unit is considered for reimbursement under the scheme, subject to maximum of Rs. 2.25 crore per unit. The new jute entrepreneurs are being engaged on job work basis in existing jute mills/MSME units for boost production of jute diversified products and start their own manufacturing units on self-employment basis and become self-sustenance.
(x) Power Tex India: A comprehensive scheme for Powerloom sector was launched in April, 2017 with an outlay of Rs. 487 crores for three years. This scheme has components relating to Powerloom upgradation; infrastructure creation, concessional access to credit, etc. The scheme has been designed to attract investment of Rs. 1000 crores and employment to 10000 persons in the Powerloom sector.
(xi) Technical Textile:- Government announced for creation of a National Technical Textile Mission at a cost of Rs. 1480 Crore with a four year implementation period from FY 2020-21 to 2023-24 with a view to position the country as a global leader in Technical Textiles. The Mission will have four components namely a). Research, Innovation and Development, b). Promotion and Marketing Development, c). Export Promotion and Education, Training and Skill Development.
(xii) SAMARTH:- The Scheme for Capacity Building in Textile Sector (SCBTS): A new scheme with an outlay of Rs 1300 crores has been approved recently in December, 2017 for providing employment oriented training to 10 lakh people in various segments in textiles including one lakh in traditional sectors.
(xiii) HANDLOOM:- Under this scheme, National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes under which financial assistance is provided for raw material purchase, looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, marketing of handloom products & loans at concessional rate etc. for enhancing production and boost the textile sector. Under the MUDRA Scheme, credit at concessional interest rate of 6% is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000/- per weaver and credit guarantee for a period of 3 years is also provided. For up-gradation of the skills of the Handloom workers 46,831 handloom workers have been provided training and 23280 Looms /Accessories provided under Hathkargha Samvardhan Sahayata (HSS).
(xiv) HANDICRAFTS:- Under this scheme, National Handicrafts Development Programme (NHDP) and Comprehensive Handicraft Cluster Development Schemes aims at holistic development of handicrafts clusters through integrated approach by providing support on design, technology up-gradation, infrastructure development, market support etc. for promotion, development and generation of employment of Handicrafts sector.
(xv) SILK SAMAGRA:- Under this scheme, Government of India has been implementing a Central Sector Scheme “Silk Samagra” for development of sericulture in the country with components such as Research & Development, Training, Transfer of Technology and I.T Initiatives, support to seed organizations, coordination and market development and, quality certification Systems (QCS)/ Export Brand Promotion and Technology Upgradation. R&D efforts have also been initiated to evolve new products. It is estimated that employment is likely to be generated around 11 million persons by 2022.
2. Fund allocated to Ministry of Textiles for financial year 2017-18, 2018-19 & 2019-20 are as under:-
S.No. Year Fund Allocated
(Rs. in crore)
1. 2017-18 6250.80
2. 2018-19 6943.26
3. 2019-20 4831.48
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