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Guj announces apparel policy, targets 1L jobs for web

Rs 4,000 payroll assistance to women and Rs 3,200 for men in the garment sector

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Gujarat Chief Minister Vijay Rupani announcing the Garment and Apparel Policy-2017 in Gandhinagar on Wednesday
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Chief Minister Vijay Rupani announced Garment and Apparel Policy-2017 on Wednesday to give a boost to the sector. The Gujarat government will provide a payroll assistance of Rs 4,000 per female worker and Rs 3,200 per male worker on a monthly basis to units in this sector. The government also offers interest subsidy during the five-year term of the policy.

Announcing the policy during a press conference in Gandhinagar, Rupani said, "Ahmedabad was known as the Manchester of India once. We have decided to make entire Gujarat the Manchester of India and that can be achieved through a policy which covers 'Farm to Foreign'. Gujarat is among the leading cotton growing states. The state government had launched the textile policy in 2012. We wish to make Gujarat the number one state in the garment and apparel sector through this policy."

Calling it as a move to encourage female employment scenario, especially rural areas, the chief minister said, "We have observed that women workers dominate this sector, one of the factors that has encouraged the government to introduce this assistance for female and male workers.

We believe this policy will draw more women to this sector which, we expect, will generate one lakh jobs in the state."

The government is also offering an interest subsidy of 5 per cent with a maximum limit of Rs 7.5 crore. The manufacturing units will also get electricity subsidy of Re 1 per unit.

The state government is also focusing on skill development in the sector. The government will give 85 per cent assistance up to the limit of Rs 3 crore for setting up training institutes and 50 per cent assistance with a maximum limit of Rs 20 lakh for purchase of plant, machinery, electrification and furniture.

The state will also prepare shades having proper infrastructure facilities for garment and apparel sector and the players can avail 50 per cent assistance to develop units in these shades to be raised on plug and play system. Those who wish to raise mega apparel parks in the state will get 50 per cent assistance for investment up to Rs 10 crore and the stamp duty will be waived off against the purchase of land for developers. The government will also give assistance of 50 per cent for preparing dormitories for workers.

Rupani said when Narendra Modi, who had announced the Textile Policy as the chief minister of Gujarat, he had created the concepts of Farm to Fibre, Fibre to Fabric, Fabric to Fashion and Fashion to Foreign export. The current Gujarat government would achieve that goal, he added.

POLICY HIGHLIGHTS

  • Rs 4,000 payroll assistance to women and Rs 3,200 for men in the garment sector
     
  • Interest subsidy of 5% with maximum limit of Rs 7.5 cr
     
  • Power subsidy of Rs 1 per unit for manufacturing units
     
  • 85% assistance up to Rs 3 cr for training institutes
     
  • 50% assistance for purchase of plant and machinery
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