Uttar Pradesh Textile and Garmenting Policy 2022
Dear-Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you an informative series i.e.,“ Uttar Pradesh Textile and Garmenting Policy 2022”
Objective:
The main objective of this policy is to establish Uttar Pradesh as a Global Textile Manufacturing Hub and to promote sustainable growth of the entire value chain. Attract investment in the textile and apparel sector to the tune of INR 10,000 Crore. Generate employment opportunity for 5 lakh persons and Development of five Textile and Apparel Parks through private sector and 50% increase in earnings of Handloom and Power loom weavers.
Quantum of Assistance:
Capital Subsidy: A Capital Subsidy of 25 percent of the investment made on purchase of Plant and Machinery will be reimbursed to the textiles and garmenting units, which generates minimum employment of 50. In addition to the above, reimbursement of additional capital subsidy at the rate of 10 percent will be provided to the units set up in Poorvanchal and Bundelkhand region of the state. The maximum limit of the Capital Subsidy is INR 100 Crore per unit.
Who can apply:
Legal entity registered as Proprietorship, Partnership firm, Cooperative Society, Company, Trust, Non-Government Organization (NGO), Limited Liability Partnership (LLP) or SPV created for the purpose of developing the Eligible Project as defined in this policy.
General Conditions:
- The eligible units which have applied for incentives under the previous policy i.e. “Uttar Pradesh Handloom, Power-loom, Silk, Textile and Garmenting Policy 2017” of the state will continue to get benefits under that policy.
- The incentives/facilities provided under this policy will be in addition to the incentives / facilities provided under the TUFS scheme or any other schemes of Government of India; unless it is specifically mentioned in the specific clause.
- The incentives and facilities enumerated in this policy will be applicable for new textile and garmenting units as well as to the existing textile & garmenting units that undertake expansion/diversification by investing minimum 25% additional investment in new plant and machinery.
- For the purpose of this policy, an employed person/worker means a person (domicile of Uttar Pradesh) working on permanent payroll or on contract or on fixed term contract of the firm.
- The subsidy for Plant and Machinery shall be considered under this policy, only if the date of loan disbursement by the bank/financial institution for the purchase of said Plant & Machinery is done on or after the date of notification and during the operative period of the policy.
Commencement and Applicability:
This policy will be valid for 5 years from the date of Effective Date or till the time any new policy/amendment is introduced by Government of UP, whichever is later.
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