Lok Sabha Question No. 4167 (UNSTARRED), answered on 2019-12-13
Subject: Textiles Sector
Ministry: TEXTILES
Asked by: Adoor Prakash

## LOK SABHA UNSTARRED QUESTION NO. 4167 TO BE ANSWERED ON 13.12.2019

## TEXTILES SECTOR

## 4167. ADV. ADOOR PRAKASH:

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

- (a) whether the Government has conducted any review on job losses in Textile sector in the last five years including the current year;
- (b) if so, the details thereof;
- (c) the details of measures taken by the Government to address the crisis in textile sector; and
- (d) whether the  Government will consider measures  to address the  various issues in  Khadi  sector, if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) & (b): The  latest  Annual  Survey  of  Industries  (ASI)  indicates  that  employment  in  the  organized manufacturing sector including textiles has increased as follows:-
- (c)  & (d): With  a  view  to  promote  investment,  production and creating employment in the textile sector, Govt. has launched several policy initiatives and is implementing schemes for giving thrust to development of textiles such as:-
- (i).    In  order  to  boost  production  and  employment  in  knitting  and  knitwear  sector,  Government  has launched a separate scheme for development of Knitting and Knitwear Sector to boost production in knitting and knitwear  cluster at Ludhiana, Kolkata and Tirupur which provide employment to nearly 24 lakh persons.
- (ii).  Amended  Technology  Upgradation  Fund  Scheme  (ATUFS)  is  being  implemented  to  upgrade technology/machineries of  textile  industry  with  one  time  capital  subsidy  for  eligible  machinery. Segments which have higher employment and export potential such as Garmenting and Technical Textiles  are  eligible  for  capital  subsidy  at  the  rate  of  15%  subject  to  cap  of  Rs.  30.00  crore. Segments such as weaving for brand new Shuttle-less Looms (including preparatory and knitting), Processing, Jute, Silk and Handlooms shall get subsidy at the rate of 10% subject to a cap of Rs. 20 crore.  Budget provision of Rs.17,822 crore has been approved for seven years from 2015-16 to 2021-22 which will attract investment of Rs.1 lakh crore and generate 35.62 lakh employment in the textile sector by 2022.

| Year    | Total manufacturing sector including textiles sector   |
|---------|--------------------------------------------------------|
| 2012-13 | 1,29,50,025                                            |
| 2013-14 | 1,35,38,114                                            |
| 2014-15 | 1,38,81,386                                            |
| 2015-16 | 1,42,99,710                                            |
| 2016-17 | 1,49,11,189                                            |

Scheme  for  Production  and  Employment  Linked  Support  for  Garmenting  Units (SPELSGU): Ministry has also notified the Scheme for Production and Employment Linked Support  for  Garmenting  Units  (SPELSGU)  under  ATUFS  to  incentivize  production  and employment generation in the garmenting sector.

- (iii).  Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment  and  exports  in  the  garmenting  and made-ups  sector  with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters  for  the  State  level  taxes;  (ii)  production  linked  additional  incentive  of  10%  is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
- (iv). Scheme for Integrated Textile Park (SITP): Government provides 40% subsidy with a celling limit of Rs. 40 crore for setting up textiles parks for infrastructure creation and additional job generation. 59 sanctioned textiles parks are under various stages of implementation, once fully operational it is expected to house about 5909 textile units will generate employment for about 3,61,093 persons and attract investment of over Rs. 26,972 crore.
- (v).   With a view to address the skilled manpower requirements of textile sector, Government have been implementing a pan India Integrated Skill Development Scheme (ISDS) from 2010-11 to 2017-18  for  providing  skill  training  to  manpower    in  the  textile  sector.  Under  the  scheme, 11.14 lakh persons were trained out of which 8.43 lakh persons were given placement. In  continuation,  as  a  part  of  Government's  focus  on  skill  development  and  employment generation in the textile sector, Government has approved a new scheme titled 'Scheme for Capacity  Building  in  Textile  Sector  (SCBTS)'  for  the  entire  value  chain  of  textile  sector, excluding spinning and weaving in the organized sector, to train 10 lakh youth for a period of three years from 2017-18 to 2019-20 at an estimated cost of Rs.1300 crore. The scheme aimed at  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 organized and related sectors and to provide skilling and skillupgradation  in  the  traditional  sector.  The  scheme  covers  handloom,  handicraft,  jute,  silk, technical textile, apparel, garmenting, textile processing and fashion segments. State

Governments and the sectoral organisations including Textile Industry and Industry Associations are partnered in taking this programme forward.

to

- (vi). National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom  Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes under which financial assistance is provided for raw material purchase, looms and accessories, design  innovation,  product  diversification,  infrastructure  development,  skill upgradation, marketing of handloom products & loans at concessional rate etc. for  enhancing production and boost the textile sector. Under  NHDP,  financial  assistance up Rs.2.00  crore  per  BLC    for  various    interventions  such  as  skill  upgradation,  Hathkargha Samvardhan sahayata, product development, construction of work shed , project management cost,  design  development    setting  of  common  facility    centre  etc  are  provided.    Besides, financial assistance  upto  Rs. 50.00 lakh is also provided  for setting up of one dye house at district  level.  Under  the  MUDRA  Scheme,  credit  at  concessional  interest  rate  of  6%  is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000/per weaver and credit guarantee for a period of 3 years is also provided.
- (vii).  National  Handicrafts  Development  Programme  (NHDP)  and  Comprehensive  Handicraft Cluster  Development  Schemes  aims  at  holistic  development  of  handicrafts  clusters  through integrated  approach  by  providing  support  on  design, technology  up-gradation,  infrastructure development, market support etc.
- (viii). PowerTex India: A comprehensive scheme for powerloom sector with components  relating to powerloom up-gradation, infrastructure creation, concessional access to credit, etc.
- (ix).Silk  Samagra  -  An  integrated Scheme  for  development of silk industry with components of research & development, transfer of technology, seed organization and coordination, market development, quality certification and export.
- (x).  Jute  ICARE  for  increasing  the  income  of  farmers  by  at  least  50%  through  promotion  of certified seeds, better agronomic practices, use of microbial re-using of Jute plant, retting to produce quality of jute, increase productivity and to reduce the cost of jute production for the jute farmers.
- (xi).  North East Region Textile Promotion Scheme (NERTPS) for promoting textiles industry in the NER by providing infrastructure, capacity building and marketing support to all segments of textile industry.
- (xii).    ROSCTL :-With  the  effect  from  07.03.2019,  the  Govt.  has  launched  a  new  scheme  viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/ Made-ups, in addition to the duty Drawback scheme.

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