Karnataka has become the first state to launch a new textile policy. It aims to attract an investment of Rs 10,000 crores and create around five lakh jobs in the next five years. This was stated by textiles minister Baburao Chinchansu recently. The new policy aims at making Karnataka a preferred textile destination. It intends to encourage textile and related activities, enhance income of small and medium entrepreneurs depending upon the industry and develop production technology and create market for output. An outlay of Rs 1,000 crores is proposed for the policy.

The new policy replaces the Suvarna Vastra Neeti that began in 2008 and came to an end this year. “Karnataka has become a model state by announcing its own textile policy. Even Gujarat and Maharashtra are seeking suggestions from the state to frame their own textile policies,” Chinchansur said.

One of the features of the new policy is that interest subsidy will be given to small and medium investors in projects worth up to Rs 99 crores. This amount will be a part of the amount earmarked for credit-linked capital subsidy. MSMEs with a maximum investment of Rs 10 crores will be provided credit-linked subsidy of 15 to 20 per cent with a ceiling of Rs 2 crore. And for units investing Rs 10 to Rs 99 crores, credit-linked capital subsidy of 15 per cent to 20 per cent will be provided with a ceiling of Rs 6 crore.