FICCI’s Suggestions on West Bengal’s Textiles Policy...
Transcript of FICCI’s Suggestions on West Bengal’s Textiles Policy...
CONTENTS PAGE
Textiles Industry in West Bengal 3
State Government’s Initiatives for the Sector 5
Advantages in West Bengal 5
Challenges and Current Issues for Textiles Industry in West Bengal 5
Vision for the State’s Textiles Industry 5
Comparative Analysis of Textile Policies of Major States 8
Way Forward for Textiles Industry in West Bengal 14
2 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
December 2012 | 3
A. Textiles Industry in West Bengal
West Bengal has a long history and tradition in textiles. The sector still provides employment, both
directly and indirectly to a large number of people in the State. However, individual units apart, the
State’s textiles sector is now lagging behind other States like Karnataka, Gujarat, Tamil Nadu, Haryana,
Maharashtra and Rajasthan. This is not to say that the State has lost the potential. The State has the
potential to revive its textiles industry and be a major part of global value chain in this sector where
global exports were worth $706 billion and registered a growth of 17% in 2011, with Bangladesh
registering a highest growth of 27%. Besides, developed countries have lost competitiveness in
textiles industry and are trying to relocate their activities in developing countries like India which has
large domestic market also.
Traditionally, Handlooms, Powerlooms, Hosiery, Jute and Silk are the major segments of West Bengal’s
textiles industry. Though late, but readymade garment segment has also got some base in the State.
It is estimated that more than 1.5 million people are employed by textiles industry in West Bengal.
This is just the direct employment and there would be another half a million people dependent on
this sector indirectly. Given below is the current status of West Bengal Textiles industry (2009-10).
Segment Number of Units Production Employment
Handlooms 3,07,829 893.76 Million Mtrs. 6,65,006
Powerlooms 10,050 120.6 Million Mtrs. 2,21,100
Hosiery 17900 176 Million Kg 1,10,000
Jute 64 (Composite Mills) 7225 thousand Bales (180 Kg/bale) 2,60,000
Silk NA NA 1,00,000
Readymade Garments 21251 490 Million Pieces 2,00,000
Source: Government of West Bengal
Cotton Textile Industry
• The State has traditional industrial base
• Production of cotton yarn increased by 5.68% to 289.36 lakh kg. in 2009-10
• Production of cotton cloth increased by 8.66% to 40.25 lakh metres in 2009-10
• 3,07,829 handlooms employing 6,65,006 persons produced 893.76 M. Mts in 2009-10
• 10,050 powerlooms employing about 2,21,100 persons produced 120.60 million sq. mtr of cloth
in 2009-10
4 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
Hosiery Industry
• West Bengal is the birth place of hosiery industry in India
• 1st hosiery factory established at Kidderpore more than a century ago
• Mainly located in Kolkata, Howrah, South 24 Parganas
• Maintained its position as the hub of hosiery goods manufacturing & trade
• Has 17900 hosiery units, employs around 1.1 lakh persons and produced 176 million
Kg of hosiery cloth in 2009-10
Readymade Garments sector
• The sector with 21251 units employed around 2 lakh persons with a production of 490 million
pcs. in 2009-10
• Clusters for readymade garments in Jaldhaka and Paharpur in Jalpaiguri district employed about
312 and 401 artisans respectively in 2009-10
Sericulture
• The State has unique distinction of producing all 4 commercially exploited varieties of silk –
Mulberry, Tasar, Eri and Muga
• Provides employment to more than 1 lakh families in rural and semi-urban areas
• Under Cluster Promotion Programme, the Central Silk Board in close co-ordination with DOSs
assist 3 pre-cocoon and 1 post-cocoon sericulture clusters in the State
Jute Industry
• West Bengal is the leading manufacturer of Jute textiles
• The state is the largest in India in 2009-10 in terms of -
¾ Area of production (499.6 thousand hect)
¾ Production (7225 thousand bales of 180kg/bale)
¾ Productivity (14.46 qtl/hect.)
• 64 among 83 composite existing jute mills in India are located in West Bengal – mostly on the
banks of river Hooghly near Kolkata
• Export of jute products during 2009-10 was 110.5 th MT valued at Rs. 844.70 crore
• State Jute industry provides direct employment to 0.26 million workers and supports the
livelihood of around 4 million farm families
Technical Textiles
• West Bengal has number of players in industrial garment segment and it has the potential
to scale it up. Similarly, the State has potential in coated fabrics for various applications (For
instance, large quantity of umbrellas are manufactured in the State which require coated
fabrics). Technical textiles industry in India is today growing at the rate of over 11% per annum.
December 2012 | 5
B. State Government’s Initiatives for the Sector• The State has a Directorate of Textiles, which is implementing a number of developmental and
welfare schemes of the State and Central Government.
• The State also has a Textiles Policy 2007-2012 to fulfill the twin objectives of (i) taking the
sectoral contribution to the State GDP to 10% and (ii) creating additional direct and indirect
sustainable employment of 1 million people by the year 2012.
C. Advantages in West Bengal• Substantial producer of chemicals, local dyes
• Availability of power
• Availability of cheap labour
• Large pool of workers traditionally trained in jute cultivation
• Easy export facility due to presence of port and airport
• Huge market, not only in India but different parts of the world especially Bangladesh and South
East Asia due to trade agreements with these countries/regions.
D. Challenges and Current Issues for Textiles Industry in West Bengal• Technological backwardness of units
• Sub-optimal and low volumes of operations
• Disconnect with large emerging markets within and outside the country
• Low labour productivity
• Archaic labour laws
• Limited raw material and intermediate product base within the State (like cotton, yarn etc)
• Lack of training and skill development institutes
E. Vision for the State’s Textiles Industry• There is a need for an ambitious long term textiles policy for West Bengal. Currently, the State
has Textiles Policy 2007-12 which is not adequate for realizing true potential of textiles in the
State.
• In terms of size, as per Annual Survey of Industries, the total production size of textiles
industry in West Bengal is around $2.9 billion which is 5.24% of total size of Indian textiles
industry’s output in 2009-10. Looking at other States, Tamil Nadu is leading with 21.5% share,
Maharashtra with 12.7% and Gujarat with 12.5% share.
6 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
Table: Size of Textiles Industry in India and States- 2009-10
India West Bengal Gujarat Tamil Nadu Maharashtra
Total Rs Lakh 26141580 1371773 3284045 5645961 3336039
Total ($bn) 55.15 2.89 6.92 11.90 7.03
Share (%) 5.24 12.55 21.58 12.74
Source: Annual Survey of Industries
• According to Annual Survey of Industries, in 2000-01 the size of West Bengal Textiles industry
was $ 1.2 billion. Implying that in a period of ten year i.e. from 2000-01 to 2009-10 the West
Bengal’s textiles industry grew by CAGR of 9.2%. Government of India has set the growth
target of around CAGR of 11.5% for twelfth five year plan for textiles. In view of the past growth
trends in the State and target for 12th Five Year Plan, following targets are being suggested for
the West Bengal’s Textiles Policy 2022-23:
¾ Doubling the share of West Bengal’s textiles industry from the current 5.2% to at least 10%
in next ten years i.e. by 2022-23 in India’s textiles industry
¾ The expected and required rate of growth to achieve the above targeted share would be
17.2% assuming that Indian textiles industry grow at the rate of 11.5% for next eleven years.
This would mean doubling the growth also of the sector in the State from the current levels.
Table: Size of Textiles Industry ($ billion)
IndiaWest Bengal Textiles Industry Size
@9.24% CAGRWest Bengal Textiles Industry's Targeted Size @ 17.2% CAGR
2012-13 72.66 3.77 4.65
2013-14 81.01 4.12 5.45
2014-25 90.33 4.50 6.39
2015-16 100.72 4.91 7.49
2016-17 112.30 5.36 8.78
2017-18 125.21 5.86 10.29
2018-19 139.61 6.40 12.06
2019-20 155.67 6.99 14.13
2020-21 173.57 7.64 16.56
2021-22 193.53 8.35 19.41
2022-23 215.79 9.12 21.58
Source: FICCI Calculation based on ASI data
December 2012 | 7
• Looking at the number of people employed in the State in the sector, there are almost fifty
people employed for every Rs 100000/- of output. Assuming the proportion of output to labour
employment remains same in the State in textiles sector, then by 2022-23 i.e. in next ten years if
the State is able to increase its industry size as targeted above, then it would provide employment
to at least 10 million people. Out of this at least 75% would be in the unskilled and semi-skilled
level if one goes by national yardstick. This means that the sector has a huge potential in the State
to provide employment to large number of people. This is to some extent also mentioned in the
NSDC (National Skill Development Corporation) Report on Textiles and Clothing, which says that
the major centers in India which will drive employment generation in textiles are Tamil Nadu,
West Bengal, Karnataka, Maharashtra, and Gujarat in next ten to twelve years. The state of West
Bengal will account for around 11% of the employment in the textile sector.
8 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
F. C
om
par
ativ
e A
nal
ysis
of T
exti
le P
olic
ies
of
Maj
or
Sta
tes
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
Polic
yG
uja
rat T
exti
le P
olic
y 20
12S
uva
ran
Vas
tra
Nee
thi
2008
-201
3Po
licy
No
te 2
012-
13, H
and
loo
ms
and
Te
xtile
s
Text
iles
Polic
y o
f
Mah
aras
htr
a 20
11-1
7Te
xtile
s Po
licy
20
07-1
2
Cap
ital
Su
bsi
dy
Guj
arat
Text
iles
Polic
y pr
ovid
es fo
r in
tere
st s
ubsi
dy
and
also
for
tech
nolo
gy
acqu
isiti
on a
nd u
pgra
datio
n.
The
inte
rest
sub
sidy
will
be
in a
dditi
on t
o th
at p
rovi
ded
by G
OI.
Max
imum
inte
rest
su
bsid
y w
ill b
e at
the
rat
e of
5%
per
ann
um (7
% fo
r sp
inni
ng u
nit
and
garm
ent/
mad
e-up
uni
ts a
nd 6
%
for
tech
nica
l tex
tiles
). Th
is
subs
idy
is fo
r in
vest
men
t in
ne
w a
nd m
oder
n pl
ant
and
mac
hine
ry a
s sp
ecifi
ed in
TU
F sc
hem
e of
GO
I. Th
e in
tere
st s
ubsi
dy is
for
perio
d of
fiv
e ye
ars
or fo
r th
e pe
riod
of r
epay
men
t w
hich
ever
is
earli
er.
For
tech
nolo
gy a
cqui
sitio
n,
finan
cial
ass
ista
nce
of u
pto
50%
of
the
inve
stm
ent
with
m
axim
um o
f R
s 25
lakh
s pe
r pr
oces
s/pr
oduc
t on
ce
durin
g op
erat
ive
perio
d of
th
e sc
hem
e
Kar
nata
ka p
rovi
des
cred
it lin
ked
capi
tal
subs
idy
on t
he b
asis
of
des
igna
ted
zone
s.
Hig
her
subs
idie
s fo
r m
ore
back
war
d re
gion
s. G
iven
bel
ow is
th
e m
axim
um s
ubsi
dy
prov
isio
n.
a) G
ener
al20
% o
n th
e va
lue
of
fixed
ass
ets
orR
s.20
.00
lakh
s,w
hich
ever
is le
ss
b) A
dd
itio
nal
su
bsi
dy
(i) U
nits
with
in
Des
igna
ted
Text
ile
Park
s5%
on
the
valu
e of
fixed
ass
ets
or R
s.5.
00
lakh
s,w
hich
ever
is le
ss.
(ii) S
C/S
T/Pe
rson
sw
ith d
isab
ilitie
s/M
inor
ity/E
xser
vice
men
/W
omen
5% o
n th
e va
lue
offix
ed a
sset
s or
Rs.
5.00
la
khs,
whi
chev
er is
less
.
No
such
sch
eme
exce
pt 4
% in
tere
st
subs
idy
for
prim
ary
wea
vers
’ coo
pera
tive
soci
etie
s on
the
rat
es
char
ged
by D
istr
ict
Cen
tral
Coo
pera
tive
Ban
ks.
Equ
ity s
uppo
rt in
the
spe
cifie
d ra
tio fo
r co
oper
ativ
e sp
inni
ng
mill
s an
d pr
ojec
ts o
f co
oper
ativ
e so
ciet
ies
in p
ower
loom
s,
wea
ving
, war
ping
, siz
ing,
Dye
ing,
Pr
intin
g, G
arm
entin
g, K
nitt
ing
etc.
10%
cap
ital s
ubsi
dy fo
r ne
w
text
ile p
roje
cts
in V
idar
bha,
M
arat
hwad
a an
d N
orth
M
ahar
asht
ra.
Als
o, in
tere
st s
ubsi
dy fo
r ne
w
text
ile p
roje
ct o
n lo
ng t
erm
loan
lin
ked
to c
entr
ally
spo
nsor
ed
TUFS
.
For
mod
erni
zatio
n of
pow
erlo
om
units
of
Sch
edul
ed C
aste
s,
Sch
edul
ed Tr
ibes
and
Min
oriti
es,
sanc
tione
d by
Ban
k’s
a sc
hem
e to
give
10%
cap
ital s
ubsi
dy o
f th
e ca
pita
l inv
estm
ent
[i.e.
10%
of
the
perm
issi
ble
inve
stm
ent
for
the
purp
ose
of
inte
rest
sub
sidy
for
proj
ects
w
hich
are
app
rove
din
TU
FS] o
n m
achi
nery
, bes
ides
th
e co
nces
sion
s re
ceiv
ed f
rom
ot
her
sour
ces,
No
such
sch
eme
of
Sta
te G
over
nmen
t in
th
e po
licy.
December 2012 | 9
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
Pow
er S
ub
sid
yPo
wer
tar
iff s
ubsi
dy @
R
s 1
per
unit
for
a pe
riod
of f
ive
year
s fo
r co
tton
sp
inni
ng a
nd w
eavi
ng
units
. Thi
s is
onl
y fo
r un
its
purc
hasi
ng e
lect
ricity
fro
m
the
Sta
te e
lect
ricity
/pow
er
dist
ribut
ion
licen
see.
Rei
mbu
rsem
ent
of c
ost
of p
ower
pai
d @
R
s.1.
00 p
er u
nit
for:
(i) R
eady
mad
e ga
rmen
t un
its(ii
) Hi-t
ech
Pow
erlo
om u
nits
with
pow
er
conn
ectio
n ab
ove
20 H
P(ii
i) S
pinn
ing
units
Han
dloo
m w
eave
rs a
re
bein
g pr
ovid
ed 1
00 u
nits
bi-
mon
thly
at
free
of
cost
.Fr
ee p
ower
sup
ply
upto
50
0 un
its fo
r po
wer
loom
sh
ed o
n bi
-mon
thly
bas
is
No
such
sub
sidy
in
the
polic
yN
o su
ch
subs
idy
in
the
polic
y
Lan
d A
cqu
isit
ion
No
such
sub
sidy
in t
he
polic
yR
eim
burs
emen
t of
25%
of
the
cost
of
land
in
clud
ing
acqu
isiti
on c
harg
es, i
f an
y, a
s ch
arge
d by
KIA
DB
/ K
SS
IDC
or
Rs.
25.0
0 la
khs,
whi
chev
er is
less
for
Zone
1 fo
r ba
lanc
ed r
egio
nal d
evel
opm
ent
No
such
sub
sidy
in t
he
polic
yN
o su
ch s
ubsi
dy in
th
e po
licy
No
such
su
bsid
y in
th
e po
licy
Sta
mp
Du
ty
Rei
mb
urs
emen
tTh
e de
velo
per
of t
extil
es
park
and
ent
erpr
ises
in
the
park
will
be
elig
ible
fo
r ex
empt
ion
of s
tam
p du
ty o
n pu
rcha
se o
f la
nd
requ
ired
for
the
new
par
k as
app
rove
d by
SLA
C
Max
imum
of
full
reim
burs
emen
tw
ith r
espe
ct t
o :
(i) E
xecu
tion
of L
ease
, Lea
se-c
um-s
ale
and
Sal
e de
eds
in r
espe
ct o
f in
dust
rial l
and
/ pl
ots
allo
tted
.(ii
) Exe
cutio
n of
Lea
se D
eeds
in c
ase
of
indu
stria
l she
ds /
plot
s ta
ken
on L
ease
.(ii
i) Lo
an a
nd c
redi
t de
eds,
incl
udin
g se
curit
y do
cum
ents
suc
h as
mor
tgag
e de
ed, p
ledg
e de
ed e
tc.,
exec
uted
for
avai
ling
long
ter
m
fund
s fr
om b
anks
/ FI
s an
d ot
her
agen
cies
of
GoK
/GoI
.
(iv) U
se-o
n S
tam
p D
uty
paid
on
Impo
rts
No
such
sub
sidy
in t
he
polic
yN
o su
ch s
ubsi
dy in
th
e po
licy
No
such
su
bsid
y in
th
e po
licy
10 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
VA
T/E
ntr
y Ta
x R
eim
bu
rsem
ent
Ref
und
of V
AT p
aid
by t
he u
nit
on
purc
hase
s of
inte
rmed
iate
pro
duct
/ra
w m
ater
ial e
xcep
t fo
r ce
rtai
n go
ods
and
cert
ain
tran
sact
ions
whi
ch a
re n
ot
elig
ible
for
tax
cred
it un
der T
he G
ujar
at
VAT
Act
, 200
3 an
d re
mis
sion
of
tax
colle
cted
on
end
prod
uct
/inte
rmed
iate
pr
oduc
t w
ithin
ent
ire v
alue
cha
in f
rom
co
tton
to
Gar
men
t an
d m
ade
ups
to t
he e
xten
t of
100
% t
he e
ligib
le
fixed
cap
ital i
nves
tmen
ts in
pla
nt a
nd
mac
hine
ry m
ade
with
in o
ne y
ear
(tw
o ye
ars
in c
ase
of in
vest
men
t m
ore
than
50
0 cr
ores
) fro
m t
he d
ate
of p
rodu
ctio
n or
dur
ing
the
oper
ativ
e pe
riod
of t
he
sche
me
whi
chev
er is
ear
lier.
This
co
nces
sion
will
be
avai
labl
e w
ithin
8
year
s fr
om t
he d
ate
of t
he p
rodu
ctio
n.
Max
imum
of
full
reim
burs
emen
t on
P
lant
& M
achi
nery
an
d C
apita
l Goo
ds
incl
udin
g eq
uipm
ents
fo
r ca
ptiv
e po
wer
ge
nera
tion
and
for
Com
mon
Eff
luen
t Tr
eatm
ent
and
was
te
disp
osal
faci
litie
s.
No
such
sub
sidy
in t
he p
olic
yN
o su
ch
subs
idy
in
the
polic
y
No
such
sub
sidy
in t
he
polic
y
Co
mm
on
E
fflu
ent
Trea
tmen
t P
lan
t an
d o
ther
en
viro
nm
ent
rela
ted
sc
hem
es
For
com
mon
eff
luen
t tr
eatm
ent
plan
t,
subs
idy
is a
vaila
ble
unde
r cl
uste
r/te
xtile
s pa
rk d
evel
opm
ent
sche
me
In a
dditi
on, G
ujar
at h
as a
sch
eme
know
n as
ass
ista
nce
for
Ene
rgy
Con
serv
atio
n, W
ater
Con
serv
atio
n an
d E
nviro
nmen
tal C
ompl
ianc
e to
exi
stin
g un
its h
avin
g in
ope
ratio
n fo
r m
ore
than
thr
ee y
ears
. 7.1
.2 Q
uant
um o
f A
ssis
tanc
e(i)
Ass
ista
nce
up t
o 50
%, M
ax R
s.
50,0
00 fo
r E
nerg
y A
udit/
Wat
er A
udit!
E
nviro
nmen
tal C
ompl
ianc
e w
hich
will
be
app
licab
le in
eac
h ca
se s
epar
atel
y.(ii
) Ass
ista
nce
up t
o 20
% o
f co
st
of e
quip
men
ts, M
ax R
s. 2
0 la
khs
whi
ch w
ill b
e ap
plic
able
in e
ach
case
se
para
tely
.(ii
i) Th
e en
terp
rises
will
be
elig
ible
for
the
abov
e be
nefit
onc
e in
2 y
ears
of
oper
atin
g pe
riod
of t
he s
chem
e
(a) 5
0% o
f th
e pr
ojec
t co
st o
r R
s.5.
00
cror
es, w
hich
ever
is
less
.
(b) I
n ca
se o
f pr
ojec
ts
fund
ed u
nder
any
G
oI s
chem
e –2
0%
of p
roje
ct c
ost
or
Rs.
2.00
cro
res,
w
hich
ever
is le
ss.
18 C
omm
on E
fflu
ent
Trea
tmen
t P
lant
s ha
ve b
een
esta
blis
hed
at a
cos
t of
Rs.
742.
93
cror
e, t
o tr
eat
the
efflu
ents
bei
ng le
t ou
t by
the
dyei
ng u
nits
in T
irupp
ur a
rea.
The
S
tate
Gov
ernm
ent
acce
ded
to t
he
requ
est
of t
he T
irupp
ur d
ye h
ouse
ow
ners
for
exte
ndin
g a
help
ing
hand
to
tho
se w
ho h
ad s
et u
p C
omm
on
Eff
luen
t Tre
atm
ent
Pla
nts
at a
hug
e co
st. W
ith a
n ai
m o
f re
duci
ng t
he
loan
bur
den,
the
Gov
ernm
ent
had
anno
unce
d a
sum
of
Rs.
320
cror
e du
ring
the
year
200
9-20
10
as f
inan
cial
ass
ista
nce.
On
this
the
C
entr
al G
over
nmen
t sh
are
is R
s.20
0 cr
ore
and
the
Sta
te G
over
nmen
t sh
are
is R
s.12
0 cr
ore.
No
such
m
easu
re in
th
e po
licy
Gov
ernm
ent
aim
ed a
t se
ttin
g up
thr
ee ju
te
park
s in
the
Sta
te u
nder
th
e po
licy
to p
rinci
pally
em
erge
as
foca
l poi
nts
for
dive
rsifi
ed a
ctiv
ities
. Th
e pa
rks
wer
e to
be
set
up in
pub
lic -p
rivat
e pa
rtne
rshi
p m
ode
with
a
spec
ial p
urpo
se v
ehic
le
driv
en b
y en
trep
rene
urs
at t
he h
elm
. Jut
e pa
rks
wou
ld h
ouse
larg
e,
med
ium
and
sm
all-
scal
e un
its a
nd p
rovi
de
wor
ld -c
lass
phy
sica
l in
fras
truc
ture
incl
udin
g de
velo
ped
indu
stria
l pl
ots,
roa
d ne
twor
k,
com
mon
eff
luen
t pl
ant
etc.
December 2012 | 11
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
Co
mm
on
In
fras
tru
ctu
re/
Text
ile P
ark/
Clu
ster
D
evel
op
men
t
The
park
will
be
prov
ided
fin
anci
al
assi
stan
ce o
f up
to
50%
,with
m
axim
um li
mit
of R
s. 1
0 cr
ore
(Rs.
30 c
rore
s fo
r S
pinn
ing
park
) of
tota
l pro
ject
cos
t fo
r es
tabl
ishi
ng
com
mon
in
fras
truc
ture
fa
cilit
ies,
exc
ludi
ng
land
cos
t.
Com
mon
infr
astr
uctu
re fo
r G
reen
field
Text
ile P
arks
- 40%
of
the
pro
ject
cos
t or
Rs.
12.0
0 cr
ores
, whi
chev
er is
less
.
For
SIT
P a
ppro
ved
Proj
ects
9%
of
the
proj
ect
cost
or
Rs.
5.00
cro
res,
w
hich
ever
is le
ss.
The
Clu
ster
dev
elop
men
t Pr
ogra
mm
e ap
proa
chfo
cuse
s on
form
atio
n of
w
eave
rs’ a
s a
grou
p to
en
able
them
ach
ieve
sel
f su
stai
nabi
lity.
Und
er t
his
sche
me
tode
velo
p th
e ha
ndlo
om
clus
ters
pos
sess
ing
300
to 5
00lo
oms,
fin
anci
al a
ssis
tanc
e up
to
Rs.
60 la
kh is
bei
ng
prov
ided
for
each
clu
ster
ov
er a
per
iod
of 3
yea
rs.
Fina
ncia
l ass
ista
nce
unde
r th
is s
chem
e is
pro
vide
d fo
rva
rious
com
pone
nts,
suc
h as
Ski
ll U
pgra
datio
n,Pu
rcha
se o
f N
ew lo
oms
and
acce
ssor
ies,
set
ting
up
of d
yein
g un
its, C
omm
on
Faci
lity
Cen
tres
, ope
ning
of
show
room
s, c
ondu
ctin
g ex
hibi
tions
/ fa
irs, p
ublic
ity,
prov
idin
g of
des
ign
inpu
ts
etc.
Inte
rest
sub
sidy
for
Text
ile P
ark
•Incaseofhandlooms,textile
park
s an
d cl
uste
rs s
hall
be
prov
ided
with
tes
ting
faci
litie
s on
nee
d ba
sis.
•theGovernm
entshallfacilitate
sett
ing
up o
f th
ree
pow
erlo
om
park
s in
publ
ic-p
rivat
e pa
rtne
rshi
p w
ith c
ompr
ehen
sive
com
mon
su
ppor
t in
fras
truc
ture
, inc
ludi
ng
com
mon
faci
litie
sfo
r fa
bric
dye
ing,
pro
cess
ing
and
finis
hing
.•Governm
entwillsetup20
inte
grat
ed t
extil
e/ a
ppar
el/
hosi
ery
park
s in
publ
ic p
rivat
e pa
rtne
rshi
p at
su
itabl
e lo
catio
ns in
the
Sta
te,
faci
litat
e, e
stab
lishm
ent
of
wor
ld -c
lass
com
mon
infr
astr
uctu
re t
here
in.
•Governm
entaimedatsetting
up t
hree
jute
par
ks in
the
Sta
te
durin
g th
e ne
xt f
ive
year
s. T
he
park
s to
be
set
up in
pub
lic
-priv
ate
part
ners
hip
mod
e an
d pr
ovid
e w
orld
-cla
ss p
hysi
cal
infr
astr
uctu
re
12 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
Ski
ll D
evel
op
men
t/Tr
ain
ing
Set
ting
up o
f Tra
inin
g In
stitu
tion
(i) U
nder
the
sch
eme,
any
aut
onom
ous
inst
itutio
ns p
rom
oted
by
gove
rnm
ent/
pub
lic
sect
or u
nder
taki
ngs
or p
rivat
e se
ctor
with
a
back
grou
nd o
f te
xtile
and
app
arel
indu
strie
s or
ski
lled
man
pow
er d
evel
opm
ent,
will
be
prov
ided
ass
ista
nce
upto
85%
, with
cei
ling
of m
axim
um o
f R
s 3
cror
e, o
f th
e pr
ojec
t co
st c
over
ing
fixed
cap
ital i
nves
tmen
t in
bu
ildin
g, e
quip
men
ts a
nd m
achi
nery
(inc
ludi
ng
inst
alla
tion
cost
), el
ectr
ifica
tion,
fur
nitu
re a
nd
othe
r m
isce
llane
ous
inve
stm
ent
requ
ired
for
sett
ing
up t
rain
ing
faci
litie
s, e
xclu
ding
land
co
st. M
axim
um 2
5% c
ost
of M
achi
nerie
s an
d Tr
aini
ng E
quip
men
ts w
ill b
e el
igib
le t
o co
nsid
er
for
Infr
astr
uctu
re in
clud
ing
Bui
ldin
g.
(ii) T
he r
ecur
ring
expe
nditu
re fo
r ru
nnin
g th
e tr
aini
ng in
stitu
tion
has
to b
e bo
rne
by t
he
prom
oter
inst
itutio
n.
In G
ujar
at, t
here
are
larg
e nu
mbe
rs o
f Tra
inin
g C
ente
rs in
the
form
of
tailo
ring
scho
ols,
whi
ch
prov
ide
trai
ning
in s
ewin
g an
d ot
her
tailo
ring
rela
ted
activ
ities
. Suc
h tr
aini
ng c
ente
rs, w
hich
co
me
forw
ard
to u
pgra
de t
heir
faci
litie
s in
or
der
to m
ake
them
via
ble
appa
rel t
rain
ing
cent
ers
will
be
prov
ided
ass
ista
nce
at 5
0%,
subj
ect
to a
lim
it of
Rs.
20
lacs
per
cen
ter,
of t
heir
inve
stm
ent
tow
ards
pur
chas
e of
eq
uipm
ent a
nd m
achi
nery
(inc
ludi
ng in
stal
latio
n co
st),
elec
trifi
catio
n an
d ne
cess
ary
furn
iture
. E
stab
lishm
ent
of n
ew t
rain
ing
cent
ers
will
als
o be
elig
ible
for
finan
cial
ass
ista
nce
unde
r th
e sc
hem
e.
Str
eng
then
ing
o
f E
xist
ing
Tr
ain
ing
In
stit
ute
s- T
he
assi
stan
ce w
ill
be li
mite
d to
R
s.1.
00 c
rore
for
each
inst
itutio
n du
ring
the
polic
y pe
riod.
The
ass
ista
nce
will
be
limite
d to
the
item
s of
ca
pita
lex
pend
iture
co
verin
g pl
ant
& m
achi
nery
, te
stin
g la
b,C
AD
/CA
M
cent
re, t
each
ing
aids
, con
tent
de
velo
pmen
t,
etc.
that
are
dire
ctly
re
late
d to
co
nduc
ting
the
text
ile e
duca
tion
rela
ted
cour
ses.
Fina
ncia
l ass
ista
nce
unde
r C
lust
er d
evel
opm
ent
sche
me
is p
rovi
ded
for
vario
us c
ompo
nent
s, s
uch
as S
kill
Upg
rada
tion
The
Ski
ll D
evel
opm
ent
Prog
ram
me
with
the
hel
p of
the
Hig
her
and
Tech
nica
l E
duca
tion
Dep
artm
ent
to b
e im
plem
ente
d un
der
the
polic
y.
The
Sta
te u
nder
the
pol
icy
aim
ed a
t tr
aini
ng 5
0,00
0 ed
ucat
ed u
nem
ploy
ed y
outh
of
the
Sta
te in
text
ile r
elat
ed a
ctiv
ities
dur
ing
the
next
5 y
ears
in a
ctiv
e ha
ndho
ldin
g w
ith G
over
nmen
t of
Indi
a, IT
Is, T
extil
e C
olle
ges,
pr
ivat
e se
ctor
pla
yers
, un
iver
sitie
s an
d co
llege
s an
d ot
her
rela
ted
outf
its.
In t
his
rega
rd, t
he S
tate
G
over
nmen
t sh
all f
acili
tate
se
ttin
g up
of
an In
stitu
te o
f A
ppar
elM
anag
emen
t by
the
App
arel
E
xpor
t Pr
omot
ion
Cou
ncil
in o
r ar
ound
Kol
kata
.
December 2012 | 13
Sta
te/
Mea
sure
Gu
jara
tK
arn
atak
aTa
mil
Nad
uM
ahar
ash
tra
Wes
t B
enga
l
Mar
ket
Dev
elo
pm
ent
and
C
apac
ity
Bu
ildin
g
Su
pp
ort
No
such
sub
sidy
in
the
polic
yM
arke
t D
evel
op
men
t an
d
Bra
nd
ing
: The
fun
ding
sup
port
w
ill b
e pr
ovid
ed fo
r th
is in
itiat
ive
wou
ld b
e 50
% o
f th
e pr
ojec
t co
st
or R
s.50
.00
lakh
s, w
hich
ever
is
less
,
Des
ign
Dev
elop
men
t an
d Pr
oduc
t D
iver
sific
atio
n: T
he f
undi
ng
supp
ort
will
be
prov
ided
for
this
initi
ativ
e w
ould
be
50%
of
the
Proj
ect
cost
or
Rs.
25 la
khs,
w
hich
ever
is le
ss
Sta
ndar
ds a
nd C
ompl
ianc
es :
The
fund
ing
supp
ort
will
be
prov
ided
to
an
indi
vidu
al u
nit
to t
he e
xten
t of
50%
of
the
cost
or
Rs.
2.00
la
khs,
whi
chev
er is
less
Mar
ketin
g in
cent
ive
is g
rant
ed o
n th
e sa
le
of h
andl
oom
pro
duct
s to
mai
ntai
n pr
ice
com
petit
iven
ess
in t
he
mar
ket.
To p
rom
ote
mar
ketin
g of
ha
ndlo
om g
oods
, Dis
tric
t Le
vel E
xhib
ition
s, S
peci
al
Han
dloo
m E
xpo
and
Nat
iona
l Han
dloo
m E
xpo
are
bein
g co
nduc
ted
with
th
e fin
anci
al a
ssis
tanc
e of
G
over
nmen
t of
Indi
a.
No
such
sub
sidy
in
the
polic
yIn
ord
er t
o ac
hiev
e th
e se
ctor
al
visi
on o
f ha
ndlo
om, t
he
Sta
te G
over
nmen
t to
fur
ther
st
reng
then
its
effo
rts
to d
evel
op
hand
loom
clu
ster
s an
d se
t up
50
addi
tiona
l clu
ster
s by
20
12 a
nd p
rovi
de c
omm
on
infr
astr
uctu
ral,
acce
ss t
o su
perio
r pr
oces
s an
d de
sign
te
chno
logy
, log
istic
al a
nd
mar
ketin
g su
ppor
t fa
cilit
ies.
Ape
x H
andl
oom
org
aniz
atio
ns
are
elig
ible
for
10%
of
the
aver
age
sale
s tu
rnov
er o
f th
e la
st t
hree
yea
rs
14 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
G. Way Forward for Textiles Industry in West Bengal
• Given the fact that the State is already lagging behind other States in textiles and also States like
Maharashtra, Gujarat and Tamil Nadu have recently announced new policy and major incentives
for the textiles sector in their State, West Bengal government would have to come out with a
really attractive package in addition to what is already being provided by Central Government for
this sector to get investments. Since this sector is one of the largest employers after agriculture,
developing this sector in the State would be in the overall interest and balanced economic
development of the State.
• With India having free trade agreements with Bangladesh and ASEAN countries, West Bengal is
strategically located also to become a leading exporting state in certain textiles segments.
• The State government’s incentive and policies have to be more than that provided by the Centre
and also by other leading States. FICCI suggests a twenty point agenda namely ‘West Bengal’s
Textiles Policy- 2022’ for the consideration of the State government. Following measures are
suggested for strengthening and reviving textiles sector base in West Bengal:
1. Competitive cost of power and uninterrupted supply of power is critical for textiles and garment
industry. Cost of power is a crucial factor for increasing cost competitiveness of industry. It
is estimated (2011 - ICRA Report for CITI) that in a Knitwear cluster in West Bengal power
tariff for industrial consumers was around Rs 5 per Kwh (reportedly the tariffs since then
have increased to Rs 7 per unit). If one compares it with Bangladesh, the cost of power will
not be more than Rs 2 or 3 in that country. Hence, our competing countries enjoy significant
cost advantage in power tariff. In order to compensate the industry for this high cost, various
States have given subsidy on power in their textiles policy. For instance, Gujarat government’s
Textiles Policy 2012 provides power tariff subsidy @ Rs 1 per unit for cotton spinning and
weaving industries.
However, given the fact that West Bengal does not have a strong base in many segments
of textiles the State could provide subsidy of Rs 1.5 per Kwh to encourage investments in
textiles. The units which purchase electricity from the state electricity/power distribution
licensee will be eligible for this benefit.
The units which want to set up captive power plants will be given assured supply of fuel/
coal linkages for the period of seven years. The State shall also ensure gas linkages for the
December 2012 | 15
generation of captive power in the State. The State government will also ensure faster
clearances for the power plant like environment, land etc. so as to ensure timely financial
closure of the project. Any excess power in captive plant could be supplied to Grid as per the
norms fixed by State Electricity Regulatory Commission. In case fuel linkage is not provided
then captive generation could also be considered for support on case to case basis.
2. Land availability- Following steps need to be taken up for providing land to the industry:
¾ To encourage setting up of large textile units and parks, the State Government should
relax the provision which prevents industry from holding maximum 24 acres of land.
¾ Currently, the Southern part of the State is more developed than other parts. In order to
ensure balanced development, the State government would reimburse 25% of the cost
of land including acquisition charges if the industry unit is set-up in designated zones
earmarked for balanced growth or additional 10% capital subsidy than that given under
TUFS and proposed Credit Linked Capital Subsidy under this policy.
¾ To reduce the transaction cost, 50% reimbursement with respect to Stamp Duty for
execution of lease, sale deeds, lease-cum-sale deeds in case of industrial land and
plots allotted or industrial sheds taken on lease. Also, the State will provide Stamp
duty reimbursement to the extent of 50% on loan and credit deeds executed for taking
long term loans from financial institutions. This support is again for designated zones
mentioned in point above.
¾ State Government should allocate land for setting up of the textiles zone/park in the State
wherever a group of more than ten industry units wants to set-up Greenfield textile park.
3. Common Infrastructure for Greenfield Clusters- The State would pursue Cluster based
strategy for textiles and garment industry. The State Government will provide additional
support to the textiles park under Centre’s SITP scheme for external infrastructure like roads,
ports, power, water supply etc and also for common amenities like testing labs, warehousing
facility, dormitories etc. The support in this regard would be Rupees 15 crore for each cluster/
park in addition to Centre’s support. If the park is situated in designated zones for balanced
growth then the amount of support would be Rs 25 crore in addition to Centre’s support.
In particular, CITI’s study found out that West Bengal has the potential to develop a leading
knitwear cluster. The State enjoys availability of power, water and labour and the study estimates
that cost disadvantage in West Bengal vis-à-vis Tirupur is less if one compares a knitwear
cluster in Bangladesh. West Bengal was once a knitwear and hosiery centre originally and then
16 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
many companies migrated to Tamil Nadu because of labour issues and strikes. However, now
the knitwear industry in Tamil Nadu is looking for relocation because of problems related to
pollution, labour and power. This offers an opportunity to West Bengal to regain investments in
knitwear sector and place itself on the global knitwear map alongside neighbouring Bangladesh.
The State can also look at developing product or sector specific parks with huge potential.
These could be in the following areas:
¾ Garment, Knitwear, Hosiery
¾ Weaving & Processing
¾ Technical Textiles
The assistance for the same may be higher than the general assistance mentioned
above. This would be on case to case basis depending on project’s potential in terms of
employment, output, exports etc.
4. Skill Development- Efforts of private sector companies/institutions, directly or through their
non-profit arms, on skill upgradation, will be scaled-up with appropriate incentives and
infrastructural support, through a mix of viability gap funding and direct assistance by State
Government.
¾ The State Government will facilitate Viability Gap Funding from the Centre for setting up
of these ITIs/Polytechnics etc on PPP basis for covering the capital cost as per the VGF
guidelines of the Ministry of Finance. In addition, the State will also provide its share of
viability gap funding (which is another 20%) for such institutes. Since the Centre already
provides 150% weighted deduction on skill development expenses this should make skill
development attractive in the State for the industry on PPP basis. State Government will
also explore opportunities for tie-up with organizations like ATDC, ILFS for the same.
¾ Further, in order to strengthen the existing training institutes in the State which are in
existence for the last five years at least and are conducting academic programmes in
textile education offering certificates, diploma, and degrees they shall be provided
technical assistance of Rupees three crore each under the policy provided they scale-
up their capacities and upgrade courses in partnership with industry and as per industry
requirements of the day. This assistance will not be for land or building but for other capital
expenditure on machinery, tools, teaching aids, content development etc.
¾ Training Centres to encourage workers in the unorganized handloom and decentralised
powerloom or silk sector to upgrade their skills for modernized spinning, hosiery and
December 2012 | 17
garment units shall be provided support. Training Centres which come forward to upgrade
their facilities for this purpose would be provided financial assistance of Rupees 30 lakhs
per centre along with partial reimbursement of stipend by the State government.
¾ State Government can also launch industry specific (e.g. garment, hosiery, jute etc.) skill
development program involving third party for both training new workers and improving
skill level of existing workers. Payment to third parties may be restricted with a upper
cap of Rs. 12000 per trainee. Govt. of West Bengal may contribute 25% of the fund
requirement and balance 75% may be taken from existing central Govt. schemes.
The above support measures will be 100% for designated zones and could be 50% in other
zones of the State.
5. As mentioned earlier, the State is a net importer of many raw materials and intermediate
products for textiles value chain. In order to ensure price competitive supply of such products
to the State, the State government should provide the following:
¾ Exemption from entry tax on plant and machinery and capital goods including equipments
for captive power generation and for waste disposal facilities.
¾ Exemption from Entry Tax on procurement of fibres and yarns in the State for sale of
fabrics in India and abroad. This will help the industry to create weaving capacities in the
State and thereby increasing employment also.
¾ CST refund to units on purchase of intermediate or raw material product in textiles value
chain upto garment stage. This concession will be available for five years from the date of
commencement of operations or till the time GST is implemented. If GST is implemented
in between then an alternate scheme will be introduced in consultation with stakeholders.
6. Scheme for Energy Conservation, Water Conservation and Environmental Compliance to
existing units (more than 2 years old)-
¾ Annual assistance up to 50%, Max Rs. 75,000 for Energy Audit/Water Audit Environmental
Compliance which will be applicable in each case separately.
¾ Annual assistance up to 20% of cost of equipments, Max Rs. 20 lakhs which will be
applicable in each case separately.
18 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
7. Common Effluent Treatment Plant- The State government will provide 50% of the project cost
or Rs 5 crore whichever is less for setting up a CETP in new or existing textile parks/clusters.
The operating cost of running the CETP to be borne by units.
8. Funding support for Standards and compliance: In order to ensure that textiles industry in the
State meets minimum expectations of global buyers, the funding support shall be provided to
an individual unit to the extent of 50% of the cost or Rs 2 lakhs whichever is less for obtaining
certification/accreditation under recognized and globally accepted international standards like
ISO-9000, ISO-140000, 1SO-18000, Social Accountability Standards, OEKO-TEX etc.
9. Credit Linked Capital Subsidy- This support would be in addition to the support given for
technology upgradation scheme of the Centre. The State government shall give the following
in addition to TUFS for modernization, establishment of new units and expansion of existing
units (if expansion is more than 25%):
¾ 5% capital subsidy or maximum of Rupees 1 crores whichever is less and
¾ 6% interest subsidy
The support under this scheme need not be tied to utilization of TUFS scheme by the unit.
10. Support for Market Development, Branding and Design- This would be meant for a group
marketing scheme for handlooms. Reimbursement of 25% of project cost or Rs 25 lakhs
whichever is less annually.
11. The State government will also come out with a separate package for handloom sector which
would include the following:
¾ Working capital loan at very low rates
¾ Ensuring raw material availability at cheaper rates for handloom
¾ Free power supply up to specified monthly limits for handloom
¾ Scheme for housing, health insurance and other welfare schemes in the State with the
help of the concerned State Departments and dovetailing these with the schemes being
implemented by Centre
12. The State government shall ensure faster clearances for textile units in textile parks and
designated clusters in terms of excise, custom, environment, Factories Act etc. and a single
window mechanism for granting permissions for textiles sector.
December 2012 | 19
13. Assurance from the State Government for an effective institutional mechanism for labour
relations to guard against any disruption in the production in textile parks and clusters.
14. In addition, there is a need to revisit various labour laws at State level for designated clusters/
parks which hamper the growth of this sector. These changes could be considered at cluster/
textile park level to begin with. Some of these changes may not require amendments also as
can be seen in the table below.
Section (Factories Act 1948)/ Subject
Existing Provision
Limit in the Act (Power to exempt is subject to these limits in the Act)
Suggested Amendment
Remarks
Section 54; Daily Hours 9 hours 12 hours (as per
Section 65(3i) 10 hours Change within existing limit
Section 65(3iii); Weekly hours 48 hours 60 hours (as per
Section 65(3iii)) 70 hours Amendment seeks increase in existing
limits
Spread over; Section 56
Ten & half hour in any day (inclusive of rest
intervals)
13 hours (as per Section 65(3ii)) Eleven and a half hour Change within
existing limit
Section 65; Overtime in a quarter 50 hours 75 hours (as per
Section 65(3iv))
150 or 156 hours (13 weeks in a quarter multiplied by 2 hours overtime each day)
Amendment seeks increase in existing
limits
15. Establishment of Centre of Excellence for Product and Design Development: Product
differentiation is the key for the success of the businesses in today’s competitive market.
This center will support individual entrepreneurs and MSMEs in this direction. This center
will have training and sample production facility for textile (including handloom) products. The
infrastructure will include Design center, Pilot production center, training facilities, testing
facilities, conference room & office building. Industry will be able to take trial runs in controlled
environment on payment basis under the able guidance of the faculties / technicians. This
will not only help them to come out with new products / designs but will reduce the cost of
developing new products. The center might be developed in PPP mode. Fund allocation might
be Rs. 25 cr or 80% of the project cost whichever is less.
16. To promote Jute and Silk, support shall be given for Common Facility Centres on PPP mode.
20 | FICCI’s Suggestions for West Bengal’s Textiles Policy-2022
17. The State Government shall also try to set-up R&D Centre for textiles in collaboration with the
industry and international institute to encourage state of the art research in textiles.
18. The State will also consider providing freight subsidy to units located in far away designated
backward regions for supplies meant for exports.
19. The State government shall also strengthen its textiles department to look into the
implementation of this policy and other issues.
20. The State would also organize with FICCI and other industry bodies road shows in India and
abroad to attract investments in textiles sector.