Lok Sabha Question No. 2685 (UNSTARRED), answered on 2018-12-27
Subject: Garments Manufacturing Centres in NER
Ministry: TEXTILES
Asked by: SUNIL BALIRAM GAIKWAD, BHOLA SINGH

## L OK SABHA UNSTARRED QUESTION NO. 2685 TO BE ANSWERED ON 27/12/2018

## 'GARMENTS MANUFACTURING CENTRES IN NER'

## 2685. DR. SUNIL BALIRAM GAIKWAD: SHRI BHOLA SINGH:

## Will the Minister of Textiles वस्त्र मंरी

be pleased to state:

(a)  the  number  of  apparel  and  garment  manufacturing  centres  functional  in  the  country especially in the North-Eastern Region and the cost of setting up of each centre during the last three years;

(b)  the  criteria  fixed  by  the  Government  for  setting  of  such  centres  and  the  achievements made in this regard so far;

(c)  whether  the  Government  is  implementing  any  scheme  for  incubation  in  apparel manufacturing;

(d) if so, the details thereof along with the financial allocation for this purpose during the last three years and the current year; and

(e) whether the Government is implementing a special package for boosting employment in the garment sector under Pradhan Mantri Paridhan Rozgar Protsahan Yojana and if so, the details  thereof  along  with  the  other  steps  taken  to  promote  apparel  manufacturing  and  its export?

## उत्तर

## ANSWER वस्त्र राज्य मंरी (श्री अजय टम्टा)

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a) & (b) The Government as such does not set up  units, hence the record of apparel and garment manufacturing centres is not maintained. The role of the Government is to ensure conducive  policy  environment,  facilitating  in  creating  enabling  conditions  for  the  industry and private entrepreneurs to set up units through its various policy initiatives and schemes. Ministry of Textiles under North Eastern Region Textile Promotion Scheme (NERTPS) had sanctioned a project during 2014-15 to set up Apparel and Garment Making Centre consisting of  three  units  one  each  in  all  North  Eastern  (NE)  States  at  a  cost  of  Rs.  18.18  crores  per Centre with 100 % GoI funding. Construction and installation of machinery in 21 units in seven NE states viz. Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and  Tripura,  were  completed  and  the  facilities  have  been  handed  over  to  the  Project Implementing  Agencies  (PIAs)  of  respective  State  Governments  for  operationalization through entrepreneurs. Construction of one unit in the state of Sikkim has been completed. As per  the  Guidelines  of  Apparel  &  Garment  Making  Centres  Project  under  NERTPS,  the respective  State  Governments  are  to  provide  developed  land  of  about  1.5  acres  with  basic amenities for constructing a single storey building with 3 entrepreneur units.

(c) & (d): The Ministry of Textiles  is implementing the Scheme for Incubation in Apparel Manufacturing (SIAM) which was launched in January 2014 with initial outlay of Rs.38.80 crores for setting up three Incubation Centres @ Rs.12.93 crores per Incubation Centre. The objective  of  the  Scheme  is  to  promote  new  entrepreneurs  in  apparel  manufacturing  by providing them an integrated workspace with complete ecosystem and plug  & play facility which  help  them  to  reduce  time,  cost  and  efforts  involved  in  setting  up  a  new  incubation Centre.    The  scheme  has  been  extended  upto  March,  2020.  Three  projects  for  setting  up Incubation Centers have been sanctioned till date whose details are as under:

- (i) Project  in  Haryana  implemented  by  Haryana  State  Industrial  and  Infrastructure Development Corporation (HSIIDC) :  Project Approved  in  2014  with a total cost of Rs. 13.45 crores with GoI share of Rs. 12.93 crores, out of which Rs. 4.00 crores GoI share has been released. The project is under construction.
- (ii) Project  in  Odisha Spinning  mills  Federation  Ltd  (SPINFED),  Bhubaneswar  : Project approved in 2014 with a total cost of Rs. 13.04 crores with GoI share of Rs. 12.93 crores, out of which Rs. 4.00   crores GoI share has been released. The project is under construction.
- (iii) Project  in  Madhya  Pradesh  Industrial  Infrastructure  Development  Corporation (IIDC) Gwalior : Project approved in 2016 with a total cost of  Rs.16.66 crores with GoI share of Rs. 12.93 crores, out of which Rs. 8.00 crores GoI share has been released. The project is under construction.

(e) In order to boost employment and enhance exports of textile and apparel products, the Government announced Special Package of Rs. 6000 crores in 2016 for garments and madeups  sectors.  The  package  offers  Rebate  of  State  Levies  (RoSL),  labour  law  reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS)  and relaxation  of  Section  80JJAA  of  Income  Tax  Act.  Further,  the  rates  under  Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel, 5% to 7% for  made-ups,  handloom  and  handicrafts  w.e.f.  1st  November  2017.  Products  such  as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various schemes, inter alia, Powertex for fabric segment, ATUFS for all segments except spinning, Scheme for Integrated Textile Parks (SITP) for all segments, etc. Assistance is provided to exporters under Market Access Initiative (MAI) Scheme. Further, Government has enhanced interest equalization rate for pre and post shipment credit for the textile sector from  3%  to  5%  w.e.f.  02.11.2018.  Further,  with  effect  from  01.04.2018,  Government  has extended Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) to all sectors including textile and apparel for providing 12% employers contribution towards Employees Provident Fund (EPF).

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