The new textile policy for 2018-2023 with an aim to attract investment of Rs 36,000 crore in Maharashtra and generate 10 lakh employment gets approval from the State Cabinet on Tuesday.

Some of the major aspects of the policy include reducing the power tariffs and increasing capital subsidy to 45 percent for spinning mills. Officials from the state textile department said that the policy takes forward the Make in Maharashtra concept to strengthen the cotton industry and silk business.

It aims to reduce the regional imbalance in the state as higher concessions would be given for setting up units in Vidarbha, Marathwada and North Maharashtra region. Separate emphasis will be on cotton producing regions, which have reported large number of suicide by farmers, said an official.

Several schemes of Rs 4649 crore will be implemented under the new policy. The policy intends to create infrastructure for textile cluster and garment parks. The policy has also suggested to prepare a proposal for setting up a textile university in the Vidarbha region.

Subhash Deshmukh, state Textile Minister said that they have made provisions in reducing power tariffs for spinning mills. Besides, spinning mills were given financial assistance in several installments. Now, they have decided to give them financial assistance in two installments only.

Capital subsidy has also been increased substantially for processing units, spinning mills, and modernisation of power looms. It proposes to give 45 percent capital subsidy for processing units, and 25 percent for spinning mills and modernisation of powerlooms. It has also proposed to give additional subsidy of 20 percent for processing and garment units in Vidarbha, Marathwada and North Maharashtra.

Another official said that one of the major reasons for spinning mills incurring losses is the higher power tariffs, compared to other states. The power tariffs in Gujarat, Karnataka and a few other states are between Rs 4 and Rs 6 per unit while it is Rs 9 per unit in our state. So, the spinning mills will be encouraged to set up solar power plants on their land and the power generated from it will be utilized by the spinning mills. Hence, the power tariffs are likely to be reduced to Rs 3.5 per unit, which would give major boost to spinning mills.