Madhya Pradesh State Government announces preferential policies for textile projects

According to reports, the Madhya Pradesh state government has announced a special preferential policy for investing in textile projects with a minimum investment of Rs 0.25 crore to attract more investors to invest in the textile industry.

According to the Times of India, the Chief Minister of the Cabinet (Shivraj SinghChouhan) agreed to provide a five-year interest subsidy of five years for the textile mills engaged in the production of fabrics, which is a comprehensive textile mill (the factory needs a fixed production chain, from cotton processing, spinning, Weaving until the finished garment) provides a 7% interest subsidy.

According to the Minister of Industry and Commerce (Kailash Vijayavargiya), under the Industrial Investment Promotion Program, the ginners will receive the equivalent of the value-added tax they paid when they sold their interstate products or the amount of the central sales tax.

Similarly, fabric production units will receive assistance, equal to the value-added tax paid for the purchase of raw materials, and the value-added tax and central sales tax paid for the sale of finished products.

The minister said that in the past three years, the state’s textile industry has attracted an investment of 70 billion rupees and created 20,000 new jobs. He added that their goal is to raise the investment level to 200 billion rupees.

He said that about 70% of the original cotton in the state is currently being shipped to other states. If more textile mills are established in the state, this will reduce the number of farmers looking for buyers in other states, such as Gujarat and Maharashtra.

The policy will make Madhya Pradesh and Maharashtra more attractive to investors, said government spokesman Narottam Mishra.