HUB UPDATE for investment in the sector ,” adds Ashok Jain , VP Commercial , Pratibha Syntex Limited . The already inherent advantages in the state of Madhya Pradesh are land availability in different parts of the state , developed infrastructure , good road , rail and air connectivity , and availability of workforce , ease of doing business in terms of approvals , permissions etc ., claims Ashok .
However , the textile policies in MP aren ’ t as lucrative as in other states , believes Suresh Maheshwari , Deputy Chairman , MPTMA & Director Maral Overseas . “ Other state policies are giving more resources , flexibility to the businesses . The conditions aren ’ t good to support new businesses here . There is no preferential allotment of land for the manufacturers ; big groups still get what they want , but for other mid-size and small players there are no proper land allotments ; the rate for clearance is also very high ,” he says candidly .
Companies looking at MP feel that industrial area ’ s infrastructure needs to be improved by proper roads , drainage system , water availability and its treatment , lighting and development of green areas . To get power , the time requirement is very high due to cumbersome procedure . The MP Govt . should try to reduce this time requirement by modifying the system . Labour laws also need to be looked at , as textile is a more labour-oriented unit . “ In MP , ID act was replaced with MPIR in textile sector in 2007 and as per the provision of this act , representative character of union is not available , as a result several unions get the opportunity to form or apply for registration and get the power to intervene in the process of collective bargaining and misuse the registration number by not doing the regular duty and other disruptive activities . In this situation , the employer is being faced with lot of difficulties to run the plant smoothly due to multiple unions and applicability of ID act ,” shares Harish .
There is still much to be done to build confidence of the industry to invest , in MP . Yet , the first steps have been taken and it will be interesting to see how the state promotes and projects its new policy , as also improves the eco-system to encourage investments . On the positive side , this policy will give a room to expand industries already working in the state and also encourage those industries working in other parts of country . It may convert MP as a hub for apparels and made-ups manufacturing considering the advantages of MP with fiscal benefits .
Assistance available under the new garment policy of Government of Madhya Pradesh
The maximum assistance available under various heads of the garment new policy will be up to 200 % of investment in plant and machinery . A large unit will be the one having investment in plant and machinery of over Rs . 10 crore . The investments made by the unit , three years before or three years after commencement of commercial production , will be considered for calculations of assistance amount .
Interest Subsidy
Reimbursement of interest @ 5 % per annum on term loans taken from Financial Institutions / Banks for purchase of plant and machinery approved by Government of India for its Amended Technology Upgradation Fund Scheme ( ATUFS ) for a period of 7 years .
Investment Promotion Assistance
Assistance as per Order dated 13th October 2017 of the State Government . This is in place of VAT and CST Refund Scheme . The assistance is based on Gross Supply Market Multiple , Export Multiple and Employment Multiple .
Training Expenses / Employment Generation Assistance
• Training expenses @ Rs . 13,000 / - per annum for 5 years with respect to whether the employee is trained and resident of the State .
• Employment Generation @ Rs . 1,500 per month per employee in respect of all those new employees who are appointed in the first 8 years from the start of commercial production . The period of assistance will be 5 years . The assistance will be limited to 10 years ; this implies that for a new employee appointed in the 8th year , the assistance will be available for two years only .
• The assistance will be on the following conditions :
Sl . No . |
Period |
Per cent of employees residents of the state ( Minimum ) |
1 . Within one year 50 % 2 . Within three years 75 % 3 . Within five years 90 %
If the above ratio is not maintained , the assistance will be reduced proportionately .
Reimbursement of stamp duty and registration charges
The units , which take land in Industrial Areas established by the State Government , will be reimbursed such charges .
Development charges
Units taking land in Government Industrial Areas will be allowed 50 % rebate in Development Charges payable , which will be in addition to rebate in premium as per MP Industrial Land & Building Management Rules , 2015 .
Exemption from Electricity Duty
All eligible new units will get exemption from payment of Electricity Duty for a period of 7 years .
Rebate in Electricity Tariff
The new units will get electricity at fixed rate of Rs . 5 / - per unit for a period of 5 years .
For availing above concessions / assistance , the units should start commercial production between 1st April 2018 and 31st March 2022 . The units which invest up to 75 % of proposed investment will be allowed one year extra for availing these concessions / assistances .
www . apparelresources . com | JUNE 1-15 , 2018 | Apparel Online India 23