Lok Sabha Question No. 4258 (UNSTARRED), answered on 2019-12-13
Subject: Textile Sector
Ministry: TEXTILES
Asked by: Shardaben Anilbhai Patel

## LOK SABHA UNSTARRED QUESTION NO. 4258 TO BE ANSWERED ON 13/12/2019

## TEXTILE SECTOR

## 4258.   SHRIMATI SHARDABEN ANILBHAI PATEL:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a)  the steps taken by the Government to encourage textile sector in the country;
- (b)  the details of the funds and other incentives being accorded to textile industries; and
- (c)  the details of the employment avenues likely to be generated through the textile sector?

## उत्तर

## ANSWER वस्त्र मंरी (श्रीमती स्त्म ृ तत ज़ूबिन इरानी)

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (c): In order to achieve growth and to boost textiles sector in the country thereby increasing  the  productivity  and  employment,  the  Union  Government  has  taken  a  large number of initiatives. Some of the  major policy measures and schemes implemented by the Government are given below:-
- i. Rebate  of  State  and  Central  Taxes  and  Levies  (ROSCTL) :  With  effect  from 07.03.2019,  the  Central  Government  has  launched  a  new  scheme  viz.  Rebate  of State  and  Central  Taxes  and  Levies  (ROSCTL)  on  Export  of  Garments/Made-ups. The  ROSCTL  Scheme  provides  rebate  of  State  and  Central  Taxes  and  Levies  in addition to  the  Duty  Drawback  Scheme,  through  the  Scheme  on  Export  of Garments/Made-ups at notified  rates and  value  caps  and  will  remain  in  force  upto 31.01.2020.
- ii. Enhanced Customs Duty to boost domestic manufacturing : To boost indigenous production and Make in India, Government has increased Basic Customs Duty from 10% to 20% on 501 textile products.
- iii. Special  Package  for  Textile  and  Apparel  sector: Rs  6000  crores  package  was launched in June 2016 to boost employment and export potential in the apparel and made  up  segments.    This  package  consists  of  Remission  of  State  Levies  for

garmenting and made-ups; additional production and employment linked subsidy of 10%  under  ATUFS  for  garmenting;  assistance  for  the  entire  12%  employers' contribution towards EPF; fixed term employment in garmenting, increasing overtime caps; and income tax concessions under section 80JJAA for the garmenting sector.

- iv. Enhanced Duty Drawback Coverage / Rebate of State Levies (ROSL) on Export of Garments/Made-ups: This scheme is in operation from 20th September 2016 for a period of  three  (3)  years.  In  accordance  with  the  recognized  economic  principle  of zero rating of export products and in recognition of the fact that only Central Levies are rebated by way of the drawback scheme, the Central Government has decided to provide remission of State Levies in addition to the Duty Drawback Scheme through the Scheme for Rebate of State Levies on Export of Garments on an average basis only.
- v. Amended  Technology  Up-gradation  Fund  Scheme  (ATUFS): The  amended Scheme  was  launched  in  January  2016  with  an  outlay  of  Rs  17822  Crores  for technology upgradation of textiles industry with one time capital subsidy for eligible machinery.  The scheme has been designed to mobilize new investment of about Rs. 95 000 cr and employment for 35 lakh persons by the year 2022.
- vi. SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS) for the entire value chain of textile sector, excluding Spinning and Weaving in the organized sector, for a period of three years from 2017-18 to 2019-20 with an outlay of Rs. 1300 crore.  The  objectives  of  the  scheme  inter  alia  include  providing  demand  driven, placement  oriented  National  Skills  Qualifications  Framework  (NSQF)  compliant skilling  programmes  to  incentivize  and  supplement  the  efforts  of  the  industry  in creating jobs in the organised textile and related sectors and to provide skilling and skill-upgradation  in  the  traditional  sectors.  10.00  lakh  persons  will  be  trained  under the scheme by March, 2020.
- vii. PowerTex India: A  comprehensive scheme for development of Powerloom sector has  been  launched  w.e.f  01.04.2017  to  31.03.2020  with  components  like  Insituupgradation of plain Powerlooms, Group Work Shed Scheme, Yarn Bank Scheme, Common  Facility  Centre  (CFC),  Solar  Energy  Scheme,  Pradhan  Mantri  Credit Scheme, etc.
- viii. National Handloom Development Programme and National Handicrafts Development  Programme  : These  programmes  aim  at  holistic  development  of handloom  and  handicrafts  clusters  through  integrated  approach.  The  strategic interventions  under  the  programme  include  financial  assistance  for  new  upgraded looms and accessories, design innovation, product and infrastructure development, skill  upgradation,  training,  setting  up  of  Mega  clusters  for  increasing  manufacturing

and  exports,  easy  access  to  working  capital  through  customized  Mudra  loans  for weavers and artisans and direct marketing support to weavers and artisans.

- ix. 'India Handloom Brand' Scheme has been launched by the Government in 2015 to enhance  the  quality  in  weaving,  designing  and  defect  free  handloom  products  for safeguarding the interest of the buyers in the domestic and international markets. It will  promote  production  of  niche  handloom  products  with  high  quality,  authentic traditional designs with zero defect and zero effect on environment. Since its launch, 1232 registrations have been issued under 122 product categories and sale of Rs. 689.72 crore as reported on 31-03-2019.
- x. Silk  Samagra :  Government  of  India  has  been  implementing  a  Central  Sector Scheme  'Silk Samagra' for development of sericulture in the country with components  such  as    Research  &  Development,  Training,  Transfer  of  Technology and I.T Initiatives, support to seed organisations, coordination and market development and, quality certification Systems (QCS)/ Export Brand Promotion and Technology  Upgradation.  R&D  efforts  have  also  been  initiated  to  evolve  new products by blending silk with other fibres such as wool, coir, cotton etc., which have demand in international markets.
- xi. Scheme for Integrated Textile Park (SITP): This scheme is implemented in Public Private Partnership mode to attract private investments in developing new clusters of textiles manufacturing. Government of India provides financial assistance up to 40% of the project within a ceiling of Rs 40 crores. 59 projects are sanctioned under this scheme.  Out  of  these  22  textile  park  are  completed  and  remaining  are  at  various stages of construction.
- xii. Scheme  for  Additional  Grant  for  Apparel  Manufacturing  Units  under  SITP (SAGAM) : Under  the  Scheme,  the  Govt. provides  additional  grant  of  Rs  10  cr  to Integrated  Textile  Parks  under  SITP  to  set  up  new  /additional  apparel  units  in  the park.  One  project  under  the  scheme  has  been  sanctioned  to  Palladam  Hi-Tech Weaving Park, Tamilnadu. This project is expected to provide employment to 2500 persons once completed.
- xiii. Integrated  Processing  Development  Scheme  (IPDS): The  objectives  of  the Scheme is to enable the textile processing sector in meeting environmental standards through appropriate technology including marine, riverine and Zero Liquid Discharge (ZLD).  Scheme  is  revised  upto  March,  2020  with  an  outlay  of  Rs.  500.00  crores. Currently, 7 projects are sanctioned under the scheme.
- xiv. North East Region Textile Promotion Scheme (NERTPS): This scheme promotes textiles  industry  in  the  North  Eastern  Region  by  providing  infrastructure,  capacity building and marketing support to all segments of textile industry. The scheme has an outlay of Rs. 500 crores during 2017-18 to 2019-20.
- xv. Integrated  Wool  Development  Programme  (IWDP): Government  of  India  has recently  approved  IWDP  for  implementation  during  2017-18  to  2019-20  after integrating and rationalization of various schemes for holistic growth of wool sector by providing support to entire chain of wool sector from wool rearer to end consumer to increase the wool production as well as its quality.
- xvi. Jute  (ICARE): A  project  Jute  ICARE  (Improved  Cultivation  and  Advanced  Retting Exercise)  was  introduced in  2015 for improving productivity and quality of raw jute through  carefully  designed  interventions.  The  project  has  benefitted  more  than  1.9 lakhs farmers in various states in the country.
- xvii. JUTE -SMART : The Office of the Jute Commissioner has developed an end-to-end web-based platform for procurement, inspection and dispatch of jute bags which is transparent, rule based, simple to use and real time.
- xviii. Incentive Scheme for Acquisition of Plant & Machinery (ISAPM): To increase the productivity of the jute machinery and make them efficient by replacing the old machines  by  new  and  technologically  advanced  machines,  Government  has  been implementing the scheme for modernization of jute industry. The scheme has been instrumental  in  bringing  new  investment  to  the  industry.  The  ISAPM  scheme  has been launched in 2013 with an incentive @20% of the cost of machineries to Jute mills and 30% to the MSME -Jute Diversified Product (JDP) units During 2014-15 to 2018-19, capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units has been released.
- xix. The Export Promotion Councils (EPCs) work in close co-operation with various organizations of the Government to promote the growth and export of their respective sectors viz. readymade garments, cotton, silk, jute, powerloom, handloom, handicrafts and carpets, in global markets.  EPCs participate and organize fairs and exhibitions  and  standalone shows in India & overseas markets to enhance exports and access new markets.
- xx. Enhancement of rates under Merchandise Exports from India Scheme (MEIS): To  further  boost  exports  of  apparel  &  made-up  sectors,  interest  rates  under Merchandise Exports from India Scheme (MEIS) has been enhanced from 2% to 4% for apparel, 5% to 7% for made-ups, handloom and handicrafts w.e.f. Ist  November,
13. 2017.
- xxi. Market  Access  Initiative  (MAI): The  objective  of  scheme  is  to  promote  India's exports  on  a  sustained  basis.  The  scheme  is  formulated  on  product-focus  country approach to evolve specific market and specific product through market

studies/survey.The following activities are eligible for financial assistance under the scheme:

- o Marketing Projects Abroad
- o Capacity Building
- o Support for Statutory Compliances
- o Studies
- o Project Development
- o Developing Foreign Trade Facilitation web Portal
- o To support Cottage and handicrafts units
- xxii. Textiles  India  2017: The  Ministry  of  Textiles  organized  a  3  day  mega  textile exhibition namely, Textiles India 2017 from 30 th June to 2 nd July 2017 at Gujarat. The Principal objective of organizing the said mega event was to bring all segments of the Textiles  sector  under  one  umbrella  trade  event  and  showcase  the  strength  of  the Indian Textiles sector to the world. This event witnessed participation of buyers from 105 countries, international delegates and representatives and artisans and weavers.
- xxiii. Technical  Textile: To  promote  Technical  Textile  sector,  Government  has  notified 207 HSN (Harmonized System Nomeclature) Codes as Technical Textiles, and has issued  order  under  the  Public  Procurement  (Preference  to  Make  in  India)  Order, 2017, prescribing Minimum Local Purchase Content for Technical Textiles items in 10 segments for government procurement.

The above initiatives/ schemes are also aimed at setting up of new units as well as  expansion  of  the  existing  units  which  have  potential  for  generating  large employment opportunities.

Details  of  Funds  allocated  and  Expenditure  under  various  Textile  Sector  Schemes  is at Annexure.

## Annexure referred to reply to Part (a) to (c) of Unstarred Question No. 4258 dated 13/12/2019

## Details of Funds allocated and Expenditure under various Textile Sector Schemes

(Rs. in crores)

| Textile Sector                                                    | 2016-17   | 2016-17   | 2016-17   | 2017-18   | 2017-18   | 2017-18   | 2018-19   | 2018-19   | 2018-19   | 2019-20   | 2019-20           |
|-------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-------------------|
| Name of the Scheme/ Project/ Programme                            | BE        | RE        | Exp       | BE        | RE        | Exp       | BE        | RE        | Exp       | BE        | Exp on 10.12.2019 |
| Handloom                                                          | 770.00    | 826.00    | 786.35    | 654.00    | 528.72    | 532.16    | 441.49    | 477.35    | 287.58    | 456.80    | 250.97            |
| Handicrafts                                                       | 375.00    | 341.00    | 294.27    | 289.70    | 229.82    | 217.06    | 198.42    | 240.61    | 104.75    | 286.17    | 165.21            |
| Wool                                                              | 32.01     | 20.00     | 21.85     | 32.00     | 25.00     | 29.14     | 11.45     | 5.30      | 2.43      | 29.00     | 2.00              |
| Silk                                                              | 507.50    | 507.50    | 496.51    | 575.00    | 600.00    | 542.50    | 510.61    | 600.61    | 427.16    | 740.00    | 582.16            |
| Powerloom                                                         | 121.03    | 121.03    | 124.57    | 161.76    | 115.50    | 114.91    | 112.15    | 106.18    | 82.21     | 159.08    | 23.96             |
| Jute                                                              | 121.45    | 120.93    | 118.50    | 108.52    | 145.86    | 158.22    | 39.14     | 39.04     | 29.35     | 34.55     | 34.04             |
| Remission of State Leveis(ROSL)                                   | 0.00      | 400.00    | 400.00    | 1555.00   | 1855.00   | 1830.57   | 2163.85   | 3663.85   | 2622.30   | 0.00      | 0.00              |
| Consumer Industries(Misc.) TUFS, SITP, NIFT, R&D, ISDS, Technical | 2614.15   | 3944.41   | 3937.25   | 2602.00   | 2695.27   | 2453.30   | 3616.06   | 1768.53   | 843.10    | 3125.88   | 2178.87           |
| Total                                                             | 4541.14   | 6280.87   | 6179.3    | 5977.98   | 6195.17   | 5877.86   | 7093.17   | 6901.47   | 4398.88   | 4831.48   | 3237.21           |

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