New draft textile policy of Maharashtra proposes to improve efficiency like China

The Suresh Halwankar Committee formed to review the existing textile policy of Maharashtra taking into consideration that India are losing out the market to China mainly because it takes nine months for Indian cotton to become a garment. While in China, it takes just two months because of full-fledged textile hubs and hence recommended establishment of mega-textile hubs spread over 1,000 hectares as against allowing garment factories to come up in a scattered manner.

Halwankar Committee suggested setting up of mega composite hubs which will offer spinning, weaving, processing, designing and garmenting units to cut down on cost and time. The area should have common effluent treatment plants and water recycling plants to minimise damage to the environment. It policy also seeks to reduce power tariff for the sector.

The draft of the new policy which was submitted to chief minister Devendra Fadnavis on January 30 talks of adopting a ‘Fibre to Fashion’ approach to turn around the textile sector, which was once blooming in the state. The draft policy will now be sent to the cabinet for approval.

It has recommended disinvestment of sick cooperative mills and development of five mega-textile hubs, while stressing the need for foreign direct investment (FDI) to take global players head on.

Amravati must be developed as spinning, Nagpur as knitting, Solapur teri-towel and Ichalkaranji for suiting-shirting-denim mega composite textile hubs with complete set-up of related facilities including world-class designing and skill development centres. Three process parks at Ichalkaranji-Solapur-Malegaon is must, outlines the proposed policy which is drafted in accordance with the central government’s vision, strategy and action plan for Indian Textile sector 2020-2025″ and after studying policies of eight states.

At present, over 30 lakh people are directly employed by the garment industry and its ancillary units provide jobs to about 2 crore people. This makes the sector second only agriculture in terms employment generation.

Maharashtra is India’s second largest cotton producer – 81 lakh bales from over 38.7 hectare. Of this, only 25 lakh bales are consumed by the spinning mills in the state. According to the Committee’s report, Maharashtra will need over 50 lakh spindles to utilize all the cotton grown in the state. To achieve this, the sector will need an investment of about Rs50,000 crore. Since the state earns over Rs1,000 crore revenue from selling yarn worth 40,000 crore, increasing spinning capacity would help generating more revenue.

Halwankar has also proposed handing over of permanently sick cooperative cotton mills to the private sector and the government should implement a disinvestment scheme to facilitate such changes. The committee has also asked the government to project ‘Maharashtra beyond Mumbai’ at international stage to attract FDI in textile sector.

Former textile minister Congress MLA and former textile minister slammed the report stated tgat it would kill the cooperative sector. Giving away sick cooperative textile mills to private sector will kill the cooperative sector which has played a major role in rural development. The government must take action against erring officials of cooperative mills. Halwankar has proposed reduced power tariff while it is the BJP government that discontinued power subsidy to power looms.

Other recommendations of Halwankar Committee made in the new textile draft policy:

One form, one window to grant all permissions to set up industry
Reduced power tariff for textile industry like other states
NOC from pollution board not required for spinning, weaving or knitting mills
0.5% cess on cotton purchase of cotton for insurance of workers
Women to be allowed to work in night shifts to improve production
75% subsidy for “design-cum- sampling centres”
25% subsidy for setting up skill development centre affiliated to all big industries for offering relevant programmes with the help of IITs.
25% subsidy on conversion of shuttle loom to semi-automatic looms
10% subsidy instead of 5% for technical textiles with a cap of Rs50 lakh
30% subsidy for upgradation in B and C zone of the state, 40% in D zone