Textiles & Garment Policy – 2017

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Textiles & Garment Policy – 20172018-07-12T06:37:55+00:00

Land Subvention

50% of the Cost of Land, purchased from Government agencies in Uttar Pradesh (except in case of Gautam Budhnagar District is 30%) restricted to 5% of the total cost of project.

Exemption from Stamp Duty

Sr. No.
Particulars

Project Implemented Area in UP

Gautam Budha Nagar District Other Districts of UP
1 Land Purchased from Government Agencies to set up textile manufacturing unit 75% 100%
2 Land purchase from Government agencies for the development of infrastructure facilities 100% 100%
3 Land purchase from Government agencies for the development staff quarter/ hostels/dormitories. Nil 100%

Capital Subvention Assistance

Textile manufacturing unit will assist with 25% Capital subvention on the installation of TUFS related plant and machinery and successfully be commencing its commercial production during the operative period of the scheme, restricted to the following cap:

Sr. No. Project Investment (Rs. Crores) OR Minimum Employment Subsidy cap (Rs. Crores)
1 <=10 50 2
2 >10 but <=50 200 10
3 >50 but <=100 300 20
4 >100 but <=200 500 40
5 >200 1000 100

Interest Subvention on the term loan availed for

procuring Plant & Machinery

  • Interest subvention on term loans availed by the textile units for installation of TUFS related plant and machinery.

  • Interest subvention @ 7% for 7 years restrict to ` 75.00 Lakhs per year per unit in the Gautam Buddha Nagar District.

  • Interest subvention @ 7% for 7 years restrict to ` 150.00 Lakhs per year per unit in the other district of the state.

Interest Subvention on the term loan availed for Infrastructure

  • Interest subvention on term loans availed by the textile units for developing infrastructural amenities for self-use such as road, sewage, effluent treatment, drainage, power-line, transformer and power feeder etc.

  • Interest subvention @ 5% for 5 years restrict to ` 100.00 Lakhs per unit.

EPF Rimbursement

  • The new Textile establishment provides employment to 100 or more workers will be reimbursed 50% of the Employer’s EPF contribution for 5 Years for the workers not covered under Pradhan Mantri Rojgar Protsahan Yojana.

  • New Textile establishment provide employment to 200 or more workers will be reimbursed 60% of the Employer’s EPF contribution for 5 Years for the workers not covered under Pradhan Mantri Rojgar Protsahan Yojana.

  • Garment Unit availing EPF reimbursement under Pradhan Mantri Rojgar Protsahan Yojana for 3 years, will be getting the benefit for 2 more years from the state government.

Freight Reimbursement

  • New establishment will be provided reimbursement on freight from unit to port for five year.

  • 75% of the freight in First and Second Year

  • 50% of the freight in Third and Fourth Year

  • 25% of the freight in Fifth Year

Exemption from State Tax Department (GST)

Reimbursement of GST up to the share of net state GST receivable by the state restricted to 25% of fixed capital Investment or actual tax deposited, whichever is less, for 10 Years.

Sr. No. Units Regions In Uttar Pradesh
Poorvanchal Bundelkhand Madhyanchal Pashimanchal Gautam Buddha Nagar District
1 MSME 90% 90% 90% 90% 90%
2 Non MSME 90% 90% 75% 75% 60%
3 MEGA 80% 80% 80% 80% 80%
4 SUPER MEGA 80% 80% 80% 80% 80%

Employment Generation Subvention to MEGA and SUPER MEGA units

Unit Type Regions of Uttar Pradesh
Bundelkhand Poorvanchal Other Region
Investment Employments Investment Employments Investment Employments
Mega Rs 5000 Lakhs to Rs. 7500 Lakhs Minimum 500 (1000 in Case of Garmenting unit) Rs 5000 Lakhs to Rs. 7500 Lakhs Minimum 500 (1000 in Case of Garmenting unit) Rs 7500 Lakhs to Rs. 12500 Lakhs Minimum 750 (1500 in Case of Garmenting unit)
Super Mega Rs 7500 Lakhs Minimum 750 (1500 in Case of Garmenting unit) Rs 7500 Lakhs Minimum 750 (1500 in Case of Garmenting unit) Rs 12500 Lakhs Minimum 1000 (2000 in Case of Garmenting unit)
  • Rs. 3,200 per month per person employed in the garments unit for 5 years in all districts except Gautam Buddha Nagar and Ghaziabad districts.

  • Cumulatively Install 15000 sewing machines.