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8/11/2019 Vishal Chiripal - Spg.proj Final
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COMPARATIVE ANALYSIS
OF TEXTILE POLICIES OF INDIA
Vishal ChiripalDirector
hiripal Group of ompanies
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INDIAN TEXTILE INDUSTRY AT A GLANCE
Indian Textile Industry :-
Textile industr accounts for 12% Of Industrial Production Which Is 4%Of GDP.
nd
11% Share Of The Countrys Total Export.
India, the worlds second-biggest cotton grower, had produced a record36.5 million bales in the 2012-13.
India accounts for about 22 percent of the worlds spindle capacity.
Spinning & Weaving industry has been able to keep pace withinternational technological trends by taking advantage of the technologyup gradation fund scheme (TUFS).Source : TXC Office, Mumbai
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TOTAL SPINDLEAGE AND LOOMS IN INDIA 2012-13
Installed Capacity World India Share inWorld
Indias Rank
Spinning (in millions)
Spindles (Cotton 205 48 22% 2 (China)
Spindles (Wool) 15 1.0 7% 3 (China)
.
Weaving (in millions)
. .
Shuttle less Looms 1.6 0.15 9% 4 (China)
. .
Total Looms 9.7 4.85 50% 1
SOURCE : CITI (CONFEDERATION OF INDIAN TEXTILE INDUSTRY)
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COTTON GROWING AREA AND ITS OUTPUT (In Millions)
Rank State2012-13 2013-14*
Area Production % of Area Production %ro n.1 Gujarat 24.97 8.9 24.38 26.91 11.6 31.002 Andhra Pradesh 24 8.4 23.01 21.42 7.2 19.003 Maharashtra 41.46 7.9 21.64 38.72 8.1 21.604 Haryana 6.14 2.5 6.85 5.57 2.3 6.00
. . . . . .
6 MadhyaPradesh 6.08 1.9 5.20 6.21 1.9 5.30
a as an . . . . . .8 Karnataka 4.85 1.5 4.11 5.78 1.8 5.009 Tamil Nadu 1.28 0.6 1.64 1.17 0.5 1.30
10 Orissa 1.19 0.4 1.1 1.34 0.4 1.0011 Others 0.51 0.6 0.51 0.33 0.2 0.5012 ran o a . . . .
Source : The Cotton Corporation of India
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Gujarat has long been recognized as the countrys textile hub where Ginning,Pressing, spinning, Weaving, Processing, RMG etc., are the major Contributor tothe textile industry of the country.
ro uces . m on a es o e o a pro uc on n n a , n -Gujarat was the largest producer of raw cotton in the country.
Gujarat is also the highest exporter of cotton.
Gujarat has the distinction of being the highest contributor of manmade fibers
(31%) and manmade filament yarn (38%) in the country.
Gujarat is the largest producer of denim in India (65 to 70%) and the third largest.
Source : GCCI
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ANALYSIS OF TEXTILE POLICIES
State Gujarat Karnataka Maharashtra Rajasthan Tamilnadu
Policy (Gujarat Textile Policy Suvaran Vastra (Textile policy of Special Policy noteev se ee - a aras ra
17)cus om zepackage fortextile sectorenterprises
-Hnadloomsand textile
vaupto 2020)
Capital No such subsidy in theolic .
No suchsubsid in the
Yes 10%ca ital subsid
No suchsubsid in
No suchsubsid
policy. for new textileprojects. the policy. in thepolicy.
The interest Yes Subsid is 12.5% interest Yes No such
Subsidy
subsidy will be inaddition to thatprovided by GOI.
7% for s innin
availableinvestment upto 99 crores.
subsidy withoutany ceiling.
Interestsubsidy @5% p.aadditional
subsidyin thepolicy.
unit andgarment, made-up units and 6%for technical
subsidy of 1%on investmentof > Rs 25crores. 7%
textiles andremainingIndustry 5%.
for technicaltextiles.
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ANALYSIS OF TEXTILE POLICIES
State Gujarat Karnataka Maharashtra RajasthanTamilnad
u
PowerSubsidy
Power tariff subsidy@ Rs 1 per unit for a
period of five years.
Powertariff
subsidy @
No suchsubsidy in
the policy.
No suchsubsidy
in the
No suchsubsidy
in the
unit.. .
.
StampDutyReimbu
100 %Reimbursement.
Yes, 50%to fullreimburse
No suchsubsidy inthe policy.
50%exemptionfrom
No suchsubsidyin the
rsement ment withrespect to
zone.
payment ofstamp
duty.
policy..
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ANALYSIS OF TEXTILE POLICIES
State Gujarat Karnataka Maharashtra RajasthanTamilnadu
Entry TaxReimburseme
nt
by the unit onpurchases of
intermediate
.in the policy. sement
of 60%
of VAT
subsidy inthe policy.
material.
EnvironmentRelated
Assistance up to50% with maximum
(a)50% of the Projectcost or Rs. 5.00
No such subsidyin the policy.
No suchsubsidy
Yes.
c emes ce ng o s -crore for commoninfrastructure inParks and other
crores, w c everis less
(b)In case ofHandloom sector-
n epolicy.
ex es ac v es. o e pro eccost or Rs. 1.00crore, whichever is
less.CommonInfrastructure/ Textile Park /Cluster
50% with maximumlimit of Rs. 10 crore(Rs. 30 crores fors innin ark of
Yes, 10 to 40% of theproject costDepends on zoneand ro ect cost 10
Yes. No suchsubsidyin the
olic .
Yes.
Development total project cost. to 20 crores).
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ANALYSIS OF TEXTILE POLICIES
State Gujarat Karnataka Maharashtra Rajasthan Tamilnadu
Skill i) Assistance up to Yes, No such subsidy No such No such
nt / Training su ec o
max. Rs.3 crore,excluding landcost for setting
ss s ancewill be limitedto Rs. 1 crorefor each
n e po cy. su s y n epolicy.
su s y n epolicy.
up rg.Institution.
ii) Allowance toweavers @ Rs.
ns u on.
ay ordays, jobbers @Rs. 300/day for 6days for training .
Development andcapacitybuilding
policy. nt of 50%ofthe cost.
in the policy.
subsidy in thepolicy.
is availableonly forhandloom
support
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Sr.No.
Type of Cluster Location
1 Textiles Ginning Ahmedabad, Manavadar, Kadi, Vijapur, Gondal,
Dholka2 Textiles Spinning Ahmedabad, Dholka, Kalol, Chhatral, Kadi, Rajkot
3 Textiles Powerloom Ahmedabad, Surat, Kalol, Chhatral, Dholka
4 Textiles Khadi Wadhvan and Bhavnagar 5 Textiles Printing Jetpur
an r n ng
6 Textiles Finishing Ahmedabad, Surat and Bhuj
,
8 Jari Printing Surat
9 Read made Ahmedabad and Va i
Garment
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SEGMENT-WISE PROFILE
NO. OFUNITS
Cotton Ginning & Pressing 941 Mehsana, Rajkot, Bhavnagar, Ahmedabad, Amreli
Spinning & Composite 144 Ahmedabad, Silvassa
Woven RMG 2362 Ahmedabad
Power Processing 513 Ahmedabad and SuratHand Processing 1146 Rajkot
Home Textiles 60 Ahmedabad
Texturising/ Twisting/ TFO 5053 Silvassa, Surat
Embroidery 14136 Surat
Machinery Mfg. 150 Ahmedabad, Surat
Source : CAB
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Economic Analysis
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Cotton Ginning &Pressing SpinningWeaving/Knitting
Processing RMG
PROCESS FLOW CHART FOR TAMILNADU
CottonGinning &Pressin Transportation Spinning
Trans ortationWeaving Processing RMG
n ng
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ECONOMIC ANALYSISGUJARAT VS TAMILNADU
Sr.No.
Descriptions of points/ Benefits
Gujarat State Tamilnadu State
1 Availability of Cotton Within Gujarat Procured from Gujarat
2 Transportation cost per Within Gujarat : Rs. 0.60 From Gujarat to. . . .3.50 Per kg.
3 Commission on cotton Appx. Rs. 0.60 per kg Appx. Rs. 0.60 per kg
per kg (0.5 %) (0.5 %)4 Transportation cost of Within Gujarat From Tamilnadu to
. .Rs. 3.50 to 4.00 per kg
5 Commission on yarn per 0.5% 0.5%kg
6 Delivery period andlace
Within 24 hours anywherein Gu arat.
5-7 days.
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ECONOMIC ANALYSISGUJARAT VS TAMILNADU
r.No
.
escr p ons opoints
/ Benefits
u ara a e am na u a e
9 Port facility forexport
Yarn Manufactured inGujarat :Easy availability of port
Yarn manufactured inTamilnadu :
Available but cost is highfacility with low cost
10 Freight of machinerywith all taxes
Rs. 260 per spindle Appx. Rs. 27000 per
truck.
Rs. 67 per spindle Appx. Rs. 7000 per
truck Total truck may be
240 for 25000s indles
Total truck may be 240for 25000 spindles
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ECONOMIC ANALYSISGUJARAT VS TAMILNADU
Sr.No
Descriptions of points
Gujarat State Tamilnadu State
. / Benefits
11 Taxes (VAT/CST) oncotton
VAT 5% (Subsidy fromGovt. of Gu arat
CST 2%
12 Taxes (VAT/CST) on VAT 5% (Subsidy from CST 2%
13 State Govt.
VATElectric bill
VAT 5%Rs. 1 per Unit
NilNil
Govt. Duty inElectric bill
Waived Nil
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ECONOMIC ANALYSISGUJARAT VS TAMILNADU
Sr.No.
Descriptions of poin ts / Benefits Gujarat State Tamilnadu State
en ra ov .Benefits
Interest subsidy
Project upto 250 crores: 2 % stand alone s innin Project upto 250 crores: 2 % stand alone s inninunits
5 % to the spinning units withforward integration.
units 5 % to the spinning units
with forward intigration
15 Availability ofElectricity
24 hours 15 to 17 hours
16 Cost of Electrici typer unit
From power plant Rs.4.85 per Unit Rs. 8 per Unit (Appx.)From state govt. Rs.7.25 per Unit Rs. 5.50 per Unit (Appx.)
17 Labour cost per Shift8 hours
Rs. 270 to 320/day Rs. 230 to 250/day
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ECONOMIC ANALYSISGUJARAT VS TAMILNADU
Sr.No.
Descriptions of points/ Benefits
Gujarat State Tamilnadu State
18 Availability of manpower
O erators Unskilled o erators Available man ower\Technician are available in
Gujarat.Skill upgradation
due to long termpresence of spinningindustries.
through traininginstitute/Center/Organization.
19 Availability Local andExport Market of-
Cotton Yes NoYarnFabricsProcessing
YesYesYes
YesYesNo
Garment Yes Yes
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ECONOMIC ANALYSIS OF SPINNING UNITGUJARAT VS TAMILNADU
SR. NO. PARTICULARS
GUJARAT TAMILNADU
TOTAL (IN TOTAL (IN.
CRORES) .
CRORES)
1 NO OF SPINDLES 25000 25000
2 PRODUCTION PER YEAR IN MT 4462.500 4462.500
3 SALES (REALISATION) 186.67 83.30 186.67 83.30
4 RAW MATERIAL COST (BASIC) 106.74 55.92 106.74 55.92
- . . . .
6 ELECTRICAL POWER COST 4.50 2.01 3.50 1.56
7 COMMISSION ON COTTON 0.60 0.31 0.60 0.31
8 CST ON COTTON @ 2% 2.13 1.11
9 VAT ON COTTON @ 5% 5.34 2.77
. . . .
11 COMMISSION ON YARN SALES 1.00 0.45 1.00 0.45
12 CST ON YARN @ 2% 3.73 1.67
13 VAT ON YARN @ 5% 9.33 4.17
14 INTEREST COST ON TERM LOAN @13% 13.83 6.17 13.83 6.17
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ECONOMIC ANALYSIS OF SPINNING UNITGUJARAT VS TAMILNADU
GUJARAT GOVT BENEFITSRs.
(PER KG)RS.
(CRORES)
1 INTEREST SUBSIDY @7% 7.44 3.32
2ELECTRICITY SUBSIDY @ 1.00 PERUNIT 0.62 0.28
3 VAT BENEFIT PER KG 5.34 2.38
4
BILL 0.06 0.03
5 CST ON YARN - (SAVING) 3.73 1.66TRANSPORTATION ON COTTON -
6 (SAVING) 2.70 1.40
7TRANSPORTATION ON YARN -(SAVING) 2.50 1.12
. .
TOTAL GUJARAT GOVT BENEFITS 21.40 9.75
CENTRAL GOVT BENEFITS Gujarat Tamilnadu
1
(SPINNING) 2.13 0.95 2.13 0.95
2INTEREST SUBSIDY @5% (SPG. +LINK) 5.32 2.37 5.32 2.37
TOTAL GOVT BENEFITS - SPINNING 23.53 10.69 2.13 0.95
TOTAL GOVT BENEFITS - SPINNING +LINKAGES 26.72 12.12 5.32 2.37
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CONCLUSION
TUFs scheme should also be extended to textile machinery manufacturers byan .
alone units to make them successful and more attractive.
Capital subsidy should be extended to textile units of Gujarat.
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TH NK YOUH NK YOU UU
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