The Uttarakhand government launched a mega textile policy under which it set up a series of textile parks in the Kumaon region by offering a slew of incentives.

Three textile parks in Kashipur, Jaspur and Sitarganj are being set up where a host of incentives will be available to attract new investments under the mega textile policy.

For the allotment of industrial plots the government has made the State Infrastructure and Industrial Development Corporation of Uttarakhand (SIDCUL) the nodal agency under the single window system. The land will be available under the prevailing land price at various places in the three townships. 

Under the policy guidelines, the new project having investment above Rs 75 crore will be christened as a mega textile park project. “The new project and the existing textile industries under expansion within investment above Rs 75 crore will be covered,” said a top government official. The company setting up a new unit will be given a 50 per cent rebate on the land price, the official said.

Under the policy, the allottee has to pay 20 per cent of the land premium at the time of allotment and balance payment is to be deposited within seven years in equal installment on the prevailing rate of interest. The scheme will remain in force till March 31, 2021 (with the commencement of production).

Besides, the government is also offering state capital subsidy. For MSMEs, the capital subsidy will be 15 per cent to a maximum limit of Rs 50 lakh and for heavy industry 15 per cent to a maximum limit of Rs 30 lakh.

The government is also offering an interest subsidy of 7 per cent. Cent percent VAT concession will be given on purchase of raw material and on sale of finish goods for seven years from the start of the production. A rebate of Rs 1 per unit is also available on power bills. There will be 100 per cent stamp duty rebate on the purchase of land. (WE)