Maharashtra Bets On Incentives To Drive Technical Textile Investments
Maharashtra is positioning technical textiles and sustainable textile manufacturing as key areas for future investment, offering a combination of capital subsidies, green incentives, power-cost support and dedicated textile parks.
The state’s investment proposition was outlined by Chandrika Majumder, Manager, Primus Partners, during a session on Maharashtra’s Technical Textiles and Industrial Policy Initiatives at the Indian Technical Textile Association (ITTA) AGM on September 12.
Presenting Maharashtra’s integrated and sustainable textile policy, Majumder highlighted the state’s established textile ecosystem and the incentives available to companies establishing or expanding manufacturing operations.
Maharashtra, with an economy of around US$ 550 billion, is targeting a US$ 1 trillion economy, with textiles expected to contribute through manufacturing, exports and employment. The state is a major producer of cotton and yarn and has a significant textile and apparel manufacturing base.
A key feature of the policy is its location-based capital subsidy structure, with incentives varying according to project size and location. Eligible MSMEs in the Vidarbha region can receive capital subsidy support of up to 45%, with the applicable incentives varying across different zones and categories.
Sustainability is another major component. The state provides green incentives for effluent treatment plants, zero-liquid-discharge systems, solar power, common facilities and textile recycling plants. Support for eligible environmental infrastructure ranges from Rs 5 crore to Rs 10 crore, while solar projects can receive support of up to Rs 4.8 crore.
The policy also provides an additional 5% subsidy in specified cases involving employment of people from marginalised communities and women-led units.
Power costs, a major consideration for textile manufacturers, are addressed through electricity tariff support ranging from Rs 2 to Rs 4.77 per unit across the textile value chain.
Maharashtra is also promoting cluster-based manufacturing through textile parks. Around 620 acres has been allocated for the state’s PM MITRA Parks, while technical textile parks can access capital and green incentives under the policy framework.
The state is also reviewing its mini textile park policy based on industry feedback.
Beyond fiscal incentives, Maharashtra is focusing on skill development and ease of doing business. The textile department has partnered with institutions including SITRA, ITTA and SASMIRA for capacity building and is proposing a dedicated skill-development mission for the sector.
Digital systems for textile and industrial incentives are also being used to simplify applications and subsidy disbursement.
For technical textile companies, Maharashtra is seeking to offer an integrated investment ecosystem combining manufacturing infrastructure, fiscal incentives, sustainability support, skilled manpower and industrial parks as it looks to attract higher-value textile investments.
