“The textiles policy announced by the state government will prove to be a boon for the industry and is likely to attract fresh investments to the tune of Rs 10,000 crore,” Rajasthan Industries Minister Rajendra Pareek said today after inaugurating the fair titled ‘VASTRA-2013’ here.

The Rajasthan Cabinet had decided to provide a special customized package for the development of the textile industry. The package for the sector will be applicable to new enterprises, already established entities making an investment for modernization, expansion and diversification and sick units.

“A few years back, the textiles industry in Rajasthan was languishing and that is when, under the guidance and vision of our Chief Minister Ashok Ghelot, the state machinery went into mission mode. Today, because of innovative schemes, textiles-friendly policies and infusion of new technologies, the industry has been resurrected and is headed for an upsurge,” he added.

The policy will remain valid till 2020 and the salient features of this package include interest subsidy for establishing new enterprises as well as diversification and modernization of existing units and reimbursement of 60 percent of Value Added Taxpaid under Rajasthan VAT.

The four-day long exhibition, which is being jointly organized by Rajasthan State Industrial Development and Investment Corporation (Riico) and Federation of Indian Chambers of Commerce and Industry, aims to provide a platform to participants for forming new business relations, exports, partnerships worldwide and locations for setting up businesses in India.

The fair would contribute further in projecting India particularly Rajasthan as a prominent sourcing hub and investment destination.

This year, 202 exhibitors have showcased their products including apparel, made-ups, home textiles, fashion accessories, carpets, rugs and bags. 421 buyers from 66 countries and 43 Indian buying houses are expected to visit the fair.

‘Vastra’ has a special significance for Rajasthan as the state government has recently announced a separate policy for the sector titled the ‘Special Customised Package for Textiles Sector Enterprises – 2013’.