Lok Sabha Question No. 4503 (UNSTARRED), answered on 2020-03-20
Subject: Employment Generation through Textile Sector
Ministry: TEXTILES
Asked by: Subhas Sarkar

## LOK SABHA UNSTARRED QUESTION NO. 4503 TO BE ANSWERED ON 20.03.2020

## EMPLOYMENT GENERATION THROUGH TEXTILE SECTOR

## 4503.    DR. SUBHAS SARKAR:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

- (a) the details of measures taken by the Government to boost textile sector in the country;
- (b) the details of funds and other incentives being made available to textile industries including details of funds sanctioned to States, particularly West Bengal for the purpose during the last three years; and
- (c) the details of employment likely to be generated through textile sector by 2022?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) to (c): The government has taken number of measures/incentives to boost textile sector and generate employment in the country as a whole including West Bengal. Measures taken inter-alia include the following:-

- (i) Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment generation  of  around  1.11  crore  jobs  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; production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
- (ii) Amended Technology Upgradation Fund Scheme is being implemented to upgrade technology/machineries of textile industry with an outlay of Rs.17,822 crore during 2016-2022  which will attract investment of Rs.1 lakh crore and it is estimated to generate employment for about 35 lakh persons in the textile sector.

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 textile sector.

- (iii) RoSCTL:- To boost exports, Govt. has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/ Made-ups with effect from 07.03.2019, in addition to the duty  Drawback scheme. Government has also notified a special one-time additional ad-hoc  incentive upto  1%  of  FoB  value  to  be  provided  for  exports  of  apparel  and  made-ups  to  offset  the  difference between RoSCTL and RoSL + MEIS @4% from 7.3.2019 to 31.12.2019.
- (iv) To  boost  exports  in  the  MMF  sector,  Government  has  removed  anti-dumping  duty  on  PTA,  a  key material for the manufacturing of MMF fibre and yarn.
- (v) Merchandise Export for India Scheme (MEIS): This scheme was introduced under Foreign Trade Policy 2015-2020 to offset infrastructural inefficiencies and associated costs involved in export of goods/products to enhance India's export competitiveness.
- (vi Market Access Initiative (MAI) is formulated on product focused country approach to evolve specific market and specific product through  market studies/survey.  Interest equalization rate for pre and post shipment  credit  for  exports  by  MSMEs  of  textiles  sector  has  been  enhanced  from  3%  to  5%  w.e.f 02.11.2018.
- (vii) Scheme for Integrated Textile Park (SITP): Under the Scheme, Government provides 40% subsidy with a ceiling of Rs.40 crore to set up Textile Parks for infrastructure creation and employment generation.
- (viii) A  separate  scheme  for  development  of  Knitting  and  knitwear  has  been  launched  recently  to  boost production in knitting and knitwear clusters which provide employment to nearly 24 lakh persons.
- (ix) Jute ICARE for increasing the income of farmers by at least 50% various incentive are given 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.

For modernization of Jute Industry an incentive of 20% of the cost of the new machinery for Jute Mill and 30% JDB-MSME unit is considered for reimbursement under the scheme, subject to maximum of Rs. 2.25 crore per unit.  The new jute entrepreneurs are being engaged on job work basis in existing jute mills/MSME units for boost production of jute diversified products and start their own manufacturing units on self-employment basis and become self-sustenance.

- (x) Power Tex India: A comprehensive scheme for Powerloom sector was launched in April, 2017 with an outlay  of  Rs.  487  crores  for  three  years.  This  scheme  has  components  relating  to  Powerloom upgradation; infrastructure creation, concessional access to credit, etc. The scheme has been designed to attract investment of Rs. 1000 crores and employment to 10000 persons in the Powerloom sector.
- (xi) Technical Textile:- Government announced for creation of a National Technical  Textile Mission at a cost of Rs. 1480 Crore   with a four year  implementation period from FY 2020-21 to 2023-24 with a view  to  position  the  country  as  a  global  leader  in  Technical  Textiles.  The  Mission  will  have  four components  namely  a). Research, Innovation and Development, b). Promotion and Marketing Development, c). Export Promotion and Education, Training and Skill Development.
- (xii) SAMARTH:- The Scheme for Capacity Building in Textile Sector (SCBTS): A new scheme with an outlay  of  Rs  1300  crores  has  been  approved  recently  in  December,  2017  for  providing  employment oriented  training  to  10  lakh  people  in  various  segments  in  textiles  including  one  lakh  in  traditional sectors.
- (xiii) HANDLOOM:-  Under  this  scheme,  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 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.      For  up-gradation  of  the  skills  of  the  Handloom workers 46,831 handloom workers have been provided training and 23280 Looms /Accessories provided under Hathkargha Samvardhan Sahayata (HSS).
- (xiv) HANDICRAFTS:-  Under  this  scheme,  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. for promotion, development  and  generation of employment of Handicrafts sector.
- (xv) SILK SAMAGRA:-  Under this scheme, 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  organizations, 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. It is estimated that employment is likely to be generated around 11 million persons by 2022.
2. Fund allocated to Ministry of Textiles for financial year 2017-18, 2018-19  & 2019-20 are as under:-

|   S.No. | Year    |   Fund Allocated (Rs. in crore) |
|---------|---------|---------------------------------|
|       1 | 2017-18 |                         6250.8  |
|       2 | 2018-19 |                         6943.26 |
|       3 | 2019-20 |                         4831.48 |