The north Indian state of Bihar has announced a new textile and leather policy, aimed at promoting industrialisation, as the state has ample availability of skilled labour. To attract investors, the policy will provide 15 per cent subsidy on investment in plant and machinery. The state government has also assured timely disbursement of subsidies. As per the Bihar Industrial Investment Promotion Policy (Textile & leather policy), released by the state chief minister Nitish Kumar today, new textile units set up under certain conditions will be entitled for capital investment subsidy of 15 per cent of expenditure on plant and machinery. The subsidy, with a cap of ₹10 crore, will be disbursed in five years after the commencement of production.
Further, all textile and leather units will get 100 per cent reimbursement of SGST for 5 years. The new units set up under the latest policy will be eligible for freight subsidy, employment subsidy, power subsidy, patent subsidy, skill development subsidy, and exemption from stamp duty, registration fee and land conversion fee. The policy categorises the entire textile and leather value chain into two categories. Category A covers weaving, knitting, apparel, accessories, hosiery, leather, leather garment, leather footwear, etc, while category B comprises ginning, spinning, textile processing (printing), man-made fibre, synthetic fibre, polyester, acrylic, viscose, rayon, technical textile, and leather processing (tanning, finishing) units. Sanjay K Jain, managing director of TT Limited, who attended the event, told Fibre2Fashion, “The most important thing is an assurance from the government to disburse subsidy on time. Overall, the policy is very good.” TT Limited has announced that it will set up its new unit in Bihar under the latest state policy.