Bhupendra Singh Poonia, the managing director of Industrial Promotion & Investment Corporation of Odisha (IPICOL), shared with Mint that the state government has given the green light to textile projects under the revised Industrial Policy Regulation (IPR). This policy offers a 30% reimbursement to investors in the textiles sector.
Investors can expect to receive this incentive in five equal annual installments, amounting to a 6% reimbursement each year after they start commercial production.
This move is part of a broader effort, outlined in the technology-focused IPR introduced in December 2022, to attract investments in various textiles categories, including apparel and technical textiles, made from both synthetic and natural fibers.
Odisha, which previously had limited activity in this sector, is now seeing significant investment commitments from both national and international players. Companies like Shahi, Aditya Birla, local entity White Lotus, and Welspun Living have pledged investments ranging from ₹50 crore to ₹4,000 crore.
Apart from these incentives, the state government will also reimburse ₹2 per unit of electricity cost for the next decade, based on a base rate of ₹6 per unit, specifically for textile firms. Additionally, the state will cover ESIC and EPFO contributions for Odia workers to promote employment within the state.
Another initiative aims to build hostels for women workers, accommodating 35,000 workers at minimal rent, to improve access to manufacturing units and transportation.
India’s market for technical textiles is expected to reach ₹1.81 trillion in FY24 from ₹1.33 trillion in 2019, with a growth rate of 12% annually. Despite a slight decrease in textile exports, India remains a global leader in cotton, jute, and silk production, highlighting the immense potential for growth and innovation in the sector.
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