Research/ Review Paper | Textile Articles

Processing Sector of India

Published: June 21, 2018

Processing is the last value chain segment before the garment stitched. Grey fabric have been processed with dyes, color, prints, washes, etc to make appealing to garment manufacturer for a final garment piece. Textile Ministry schemes till now focused on Spinning due to abundance of cotton in India which needs to be converted to yarn, series of TUFS planned & offered for the benefits to spinning sector. Weaving being fragmented and most unorganized sector, only organized mills or composite mills have taken advantage of TUFS. Processing being highly water intensive and with lot of environmental compliances, eco / sustainable issues, this sector needs high investment for zero discharge effluent treatment plants. In recent policy, focus can be seen from different states to sustainable and green technology. A little brief about processing sector scheme is as follows:

Integrated Processing Development Scheme (IPDS)

(IPDS) which provides assistance to textile processing clusters for setting up Common Effluent Treatment Plants (CETP) with environment compliant effluent treatment technology wherein 7 projects have been sanctioned in the last two years with an assistance of INR 419 crore, covering 3000 SME units.

Amended Technology Upgradation Fund Scheme (ATUFS): A total of 182 new projects have been approved under Amended Technology Upgradation Fund Scheme (ATUFS) with projected investment of Rs. 468.87 crores and involving a subsidy of Rs. 37.79 crores during the month.

State Textile Policy 2018-23 Government of Maharashtra Projects for which the long term loan has been approved for machinery under the centrally sponsored TUFS scheme from the date of issuance of this Government Resolution or thereafter till 31 March 2023.

Processing (Pre& Post)

  • The existing State scheme of 25% of project cost or Rs. 37.5 crore whichever is lower for projects, approved under centrally sponsored IPDS scheme (Government Resolution dated 10/02/2015) will be continued.
  • Capital subsidy will be given for machinery required for ZLD / ETP / CETP in the processing projects.
  • Processing parks including CETP will set in coastal areas by MIDC.
  • Land for hard waste disposal will be provided in respective districts.
  • Processing parks including ZLD / ETP / CETP will set on priority by the MIDC at Ichalkaranji, Malegaon and Bhiwandi.
  • Processing projects having ZLD / ETP / CETP will be provided with electricity at concessional rates, since the costs of operating the ZLD / ETP / CETP projects and the hard waste disposal are very high.
  • Financial assistance will be provided to institutes such as SASMIRA and IIT to set up water free / effluent free dyeing / processing projects.
  • Water will be reserved for processing plants, since these plants require large volume of water.

We have taken some views from Industry contributors about the policy and processing sector. Kindly find below views from corporate / Organized as well as SME’s / Un-organized sector:

Mr.Rajendra Sidhpuria, Senior Manager in Processing at Birla Century

Birla Century is dealing with cotton wet processing. Textile Policy is much beneficial for entrepreneur. Govt. initiated to uplift the processing units by helping and supporting them. Our one of the plants is set with TUFS scheme almost 20 years back. Corporate units take full utilization of the policy. Processing sector has the bright future in India because we are adapting and implementing new technology. Birla Century achieves the gold certification in India as well as internationally. Birla Century is the first company to have Green Tag which was first approved by US.

P.E. Eshwar Director, SSM Processing Mills Ltd.

Processing Sector is in big dilemma due to GST. Input credits not been accumulated, due to which around 2 crore credit is pending till date from GST Department. This is a very big set-back.

Environment system should be centralized in all parts of India like it’s done in south, especially in Tamil Nadu. In south, we are following Zero Liquid Discharge Policy.

In NCR, pollution policy is far different one to which we follow. Pollution policy differs from state to state. And south produces quality oriented products.

Textile Policy is good but not getting good incentive to exporting fabrics to Bangladesh & Srilanka, While other neighboring countries getting benefits of incentive from their country policy.  To earn more foreign exchange in our country, we need to have better incentives of our policy.  Importers don’t have much impact after introduction of GST.

Mr.Jayesh Desai, Proprietor of Raj Industries

TUFS plays a vital role in textile industry and but timely refunds is a big issue. Government should make everything online and secure. As summer arrives water becomes a major problem in Gujarat & proper RO System must be implemented by Government. Awareness among consumer is improving for maintaining ecological balance. Manufacturers are adopting branded machines with green tag label. We expect initiative by Ministry to appreciate & uplift new manufacturers to promote their brand.

Mr. Sushil Verma, MD of Kuster Calico

After going through the Maharashtra Textile Policy I am of the opinion that this is good step by the government to promote the Textile Industry which is 2nd largest employment generator. The capital equipment subsidy of 20 to 30% is really going to give good boost for setting up new industry in the state and this would be an add-on to the 10% TUFS subsidy which is available from central government.

The 30% subsidy in some geographical areas is going to be the highest subsidy announced by any state government so far. Government should also ensure proper implementation of the scheme and provide good infrastructure for setting up industry as most of the Textile Zones will come in remote areas.

Mr Rajnikant Bachkaniwala, MD Palod Himson Machines Pvt Ltd.

Processing sector lack modernisation & decentralised in surat; going through the bad phase after demonetization & GST. Market is weak. Organised processing sector in other parts of the country is doing well. Government’s TUFS scheme does not have much effect in processing sector because it has many complications like its process and procedure which is time consuming. Government doesn’t put much effort in processing sector.

Mr. Dhaval Gandhi from Bianco Textile said that processing sector requires quality water which is free from hardness. Industry doesn’t required tanker water. Government should support to get finance @ 3% net interest for Zero Discharge Effluent Treatment Plan.

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