Karnataka Textile and Garment Policy 2019-24 (1) - 0

New Textile &
Garment Policy
2019 - 2024
(with amendments)
Department of Handlooms & Textiles
www.karnatakadht.org
New Textile and Garment Policy
2019-24
(with amendments)
PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
Sub: New Textile and Garment Policy 2019-24 - reg.

Read: 1) Government Order No. CI 44 JaKaiYo 2012, dated: 31.10.2013.
2) Government Order No. CI 112 JaKaiEe 2015, dated: 30.09.2015.
3) Government Order No. CI 84 JaKaiEe 2018, dated: 08.04.2019.(P)
****
PREAMBLE:
The Government of Karnataka has announced the NUTHANA JAVALI NEETHI 2013-18,
vide G.O. No. CI 44 JaKaiYo 2012, dated: 31.10.2013 read at (1) above in order to attract the
investment in Textile sector and make use of the resources available in the State and in turn
enhance the employment opportunities to the rural people with emphasis on balanced regional
development. The Government has approved the additions/ modifications to the NUTHANA
JAVALI NEETHI 2013-18 read to (2) above to attract more investments in Textile Sector.
This Policy came into effect from 01.11.2013 and had validity up to 31.10.2018. Further
the validity of NUTHANA JAVALI NEETHI 2013-18 was extended till the introduction of New
Textile and Garment Policy 2019-24 vide G.O. No. CI 84 JaKaiEe 2018, dated: 08.04.2019 read
at (3) above. During the Policy period, the Karnataka received an investment of Rs.9595.74
crores and 1,92,102 employment was generated.
Karnataka has always had an enduring tradition of tapping the best across India and the
world to trace a steady growth curve across diverse sectors of the economy. The transformative
journey of Textiles in Karnataka has already begun in the pursuit to foster best in- class textile
manufacturing, advanced production technologies resulting in smart textile value chain,
manufacturing processes and end-to-end ecosystems.
Karnataka the Garment Capital of India, with 20 per cent of the national garment
production of the country it has contributed all most -two thirds to the state’s industry output.
The state has an important share in the export of raw material and also a good share in the
country's exports in merchandise exports, readymade garments and handlooms. Also, the State
has a high impact on the production of raw materials, and is one of the leading producers of silk
in the country. It contributes 49 per cent to mulberry silk, 12 per cent to wool and 6 per cent of
cotton production in the country.
i
In the current scenario, with the global textile and apparel industry seeing a structural shift in
terms of manufacturing locations the need to position Karnataka at par at the sub- national and
international level is imperative. Therefore, against this changing landscape, the need for
formulating a new policy with lucrative concessions and incentives, up-dations in the
institutional framework, structuring mechanism of the projects and other relevant up-dations
have been felt essential.
In the above background, the New Textile and Garment Policy 2019-24 has been formulated,
to achieve the targets as mentioned in the Policy and to attract investment, several meetings
have been held with Textile Industrial Associations and potential investors, related
Government Departments and all other stakeholders. The views and suggestions offered by all
the stakeholders have been incorporated suitably in the policy with the objective of making
Karnataka a preferred destination for Textile Industry.
In the light of the above, a decision has been taken by the Government to formulate and adopt
a New Textile and Garment Policy 2019-24.
Hence, the following Order:
GOVERNMENT ORDER NO. CI 115 JAKAIEE 2017,

BENGALURU, DATED: 04.11.2019
In the circumstances explained in the preamble, Government is pleased to announce the New
Textile and Garment Policy 2019-24 as detailed in Annexure, enclosed to this order, to attract
more investment in Textile & Garment sectors and to create more employment opportunities in
the state.
The salient features of New Textile and Garment Policy 2019-24 are as follows.
1. Vision:
The State's New Textile and Garment Policy aims to position Karnataka as a leading
destination in the Textile and Apparel sector in the country and to make textile value chain
into gold mine value chain. The Policy will provide a stimulus to the Textile industry in the
State and aims to generate 5 lakh new employments in the next 5 years and attract
investments worth INR 10,000 crore.
2. Mission:
To retain Karnataka's position as the Garment Capital of India and to achieve higher and
sustainable growth in the entire textile value chain through capital infusion, technology
transfer, world class infrastructure and skill up-gradation.
ii
3. Strategies
a. To accelerate growth and increase manufacturing cost competitiveness in the entire

textile value chain from fiber to fashion products.
b. To give special focus on spinning, weaving (rapier loom, air jet looms and electronic
jacquard), integrated units, processing and technical textiles as thrust sectors of the policy
to create an internationally competitive textile industry in the state.
c. To make Karnataka a skill rich state in each segment of the textile value chain and
development high tech advanced skilling centers for skilling, re-skilling and up-
gradation of skills as per the needs of the industry.
d. To realize “Zero Effects; Zero Defect” at each level of the textile value chain by attracting
large scale investments for manufacturing world class facilities and promoting ZLD
Technology.
e. To increase the share of handloom exports and support designing, product diversification,
branding, marketing and distribution of handloom products to distinct international
markets.
f. To position Karnataka as a significant manufacturing hub and a net exporter of Technical

Textiles.
g. To become the retail destination and give a boost to the growth of buying houses and
international apparel retailers in Karnataka.
The New Textile and Garment Policy 2019-24 and package of incentives and concessions
shall come into effect from 04.11.2019 and will be valid for a period of 5 years or till a new
policy is announced.
This order is issued with the concurrence of the Finance Department vide endorsement No.
FD 394 Exp-1/ 2018, dated: 17.07.2019 and Revenue Department endorsement No. RD 66 /
MU NO MU/ 2018, dated: 25.09.2019 and Cabinet Note Subject No. C-596/2019 held on
31.10.2019.
By Order and in the name of the
Governor of Karnataka,
Secretary to Government,
Commerce & Industries Department
iii
To,
1) The Compiler, Karnataka Gazette, Bangalore for publish in the special Gazette and supply
1000 copies to this office.
2) The Principal Accountant General (G&SSA), Karnataka, New Building, 'Audit Bhawan',
Post Box No. 5398, Bangalore-01.
3) The Principal Accountant General (E&RSA), Karnataka, New Building, 'Audit Bhawan',
Post Box No. 5398, Bangalore-01.
4) The Principal Accountant General (A&E), Karnataka, Park House Road, Post Box No.
5329, Bangalore-01.
5) Additional Chief Secretary to Government, Finance Department, Vidhana Soudha,
Bangalore-01.
6) Principal Secretary to Government, Planning Department, MS Building, Bangalore-01.
7) Secretary to Government (Stamps & Disaster Management), Revenue Department, M S
Building, Bangalore 01.
8) The Commissioners for the Handlooms and Textile, No.86 Shubhodaya Complex,
Railway parallel Road, Kumara Park West, Bangalore 27 – to circulate the Policy to all
District Officers.
9) The Inspector General of Registration and Commissioner of Stamps and Chief
Controlling Revenue Authority, Kandaaya Bhavan, 8th floor, K G Road, Bangalore-560
009.
10) The Deputy Commissioners of all Districts of Karnataka.
11) Managing Director, Karnataka Handloom Development Corporation, Priyadarshani
Nekar Bhavan, Nekara Colony, Vidyanagar, Huballi-580 031.
12) Managing Director, Karnataka State Textile Infrastructure Development Corporation
Ltd., Kanabaragi Industrial Area, VTPC Building, Belagavi.
13) The CEO's of all Zilla Panchayats of Karnataka.
14) The Deputy Secretary to Govt., (Cabinet Section), DPAR, Vidhana Soudha, Bangalore-
01.
15) The Under Secretary to Govt., (Exp-1), Finance Department, Vidhana Soudha,
Bangalore-01.
16) Guard File/ Spare Copies.
iv
Sub:Modification to the New Textile and Garment Policy 2019-24 reg.
Read: 1) Government Order No. CI 115 JAKAIEE 2017, dated: 04.11.2019.

2) 2020-21 Budget speech Para No.166
*****
PREAMBLE:
The State Government has announced the New Textile and Garment Policy 2019-
24 on 04.11.2019 vide G.O. read at (1) above in order to attract the investment in Textile
sector and make use of the resources available in the State and in turn enhance the
employment opportunities to the rural people with emphasis on balanced regional
development.
With the announcement of the New Textile and Garment Policy 2019-24, to
develop the textile sector in the state by offering incentives and concessions to those
industries which are investing in the different value chain of the textile sector was based
on zones, where in Bengaluru Rural district was in zone-4, that means no incentives and
concessions were given to the textile and garment industries which are established in
Bengaluru Rural district.
Further Industry experts, Industrial Associations have represented to Government
to include Bengaluru Rural district to cover the incentives and concessions offered to
textile and readymade garment industries in par with other districts in Non Kalyana
Karnataka region, under the New Textile and garment Policy 2019-24.
In the 2020-21 budget
Page 1 of 4
v
v
Sl. As notiﬁed in G.O. No.

Modiﬁed Zones in New Textile
Zones
No. & Garment Policy 2019-24
dated 04.11.2019
1 Zone-1 Entire Kalyana Karnataka Entire Kalyana Karnataka
Region Region
2 Zone-2 All areas other than All areas other than Municipal
Municipal Corporations, Corporations, District
District Headquarters in Headquarters in Non Kalyana
Non Kalyana Karnataka Karnataka region
region
3 Zone-3 All Municipal Corporations All Municipal Corporations and
and District Headquarters District Headquarters in Non
in Non Kalyana Karnataka Kalyana Karnataka region
region
4 Zone-4 Bangalore Urban and Bengaluru Urban District
Bangalore Rural Districts
Page 2 of 4
vi
By Order and in the name of the
Governor of Karnataka,
Deputy Secretary to Government

Commerce & Industries Department (Textiles)
Page 3 of 4
vii
Page 4 of 4
viii
Subject: Additions / Modifications to the New Textile and Garment Policy
2019-24 reg.
Read: 1. Government Order No.CI 115 JAKAIEE 2017, dated:04.11.2019.
2. HLEC Meeting Dated: 16-07-2021.
3. Commissioner for Handlooms and Textiles, Letter No. KAIJAEE /
NUJA & CI NE / UNI (B)/HLEC/2021-22, dated:17-09-2021,13-12-
2021&22-06-2022.
*****
PREAMBLE:
The State Government has announced the New Textile and Garment Policy 2019-24
on 04-11-2019 vide G.O. read at (1) above with an objective to attract investment in the
Textile sector and make use of the resources available in the State. This in turn enhances
the employment opportunities for the rural people with an emphasis on balanced regional
development.
The New Textile and Garment Policy 2019-24 provides to develop the textile,&
Garment sector in the state by offering incentives and concessions to those industries
which are investing in the different value chain of the textile sectors and it was based on
category of industries like MSME, Large, Mega and Anchor enterprises.
High Level Empowerment Committee (HLEC) meeting was convened under the
chairmanship of the Hon’ble Minister for Handlooms and Textiles, Government of
Karnataka to discuss the additions / modifications to the New Textile and Garment
Policy with Textile Industrial Associations and potential investors on 16.07.2021. After
elaborate deliberations, additions / modifications of incentives and concessions to the
New Textile and Garment Policy 2019-24 are proposed for attracting investments and
easy business, providing employment in the state as envisaged in the policy.
With an emphasis of creating more job opportunities, Hon’ble Chief Minister had
series of meeting with major stake-holders. It was decided that to create more job
opportunities in the state under the policy, special incentives would be given. The
proposed amendments to the policy will lead to increased investment and in turn,
increased employment and business opportunities in textile and apparel sector.
ix
The Commissioner of Handlooms and Textiles has proposed to the Government; vide a
letter read at (3) above same,Additions / Modifications to the New Textile and Garment
Policy 2019-24 the same were examined in consultation with the Finance Department
and Cabinet accordingly the following Addition/Modifications are issued.
Hence the following Order:
GOVERNMENT ORDER NO: CI 15 JAKY 2022, BENGALURU

DATED :02-08-2022
Interest subsidy for Large Industries

Segments All Zones Except Zone 4 Zone 4
Thrust Sectors 5% per annum
Others Interest -
Subsidy on Term Loans
for the First 5 Years
x
1.2 Amended Guidelines:
In order to facilitate the Entrepreneurs, textile units for hassle free operations,
financial assistance will be provided to them in the form of interest subsidy. Interest
subsidy will be provided for medium and large units only at 5% per annum on term
loans for the first 5 years.
Interest subsidy for Medium & Large Industries

Thrust Sectors 5% per annum
Others Interest -
Subsidyon Term Loans
B] With Reference to Page No: 24 of the Textile Policy under Point No:9 with heading
Policy Incentives offered for Garments, the necessary amendments are brought to
the Point No: 9.2 with Heading Interest Subsidy
1.3 Current Guidelines:
In order to facilitate the Entrepreneurs, Garment units for hassle free operations,
subsidy will be provided for large units only at 5% per annum on term loans for the
first 5 years.
Interest Subsidy for Large Enterprises

Garmenting 5% per annum
Interest -
xi
In order to facilitate the Entrepreneurs, Garment units for hassle free operations,
subsidy will be provided for Medium & Large units only at 5% per annum on term
Interest Subsidy for Medium & Large Enterprises

Garmenting 5% per annum
Interest -
2. Increase of Wage Subsidy only for Garmenting Sector:

With Reference to Page No: 25 under the Textile Policy with the Heading Policy
Incentives for Garments, Necessary amendments are brought to the Incentives
mentioned in point no. 9.4 under heading Wage Subsidy.
Karnataka has strong garment industry since a long time. Garment manufacturing
industry is highly labour intensive and less capital intensive. This industry has a
women friendly employment orientation and provides employment to large
number of women. Since this sector has potential to create new employment
opportunities, the New Textile and Garment Policy 2019-2024 will be giving
monthly wage subsidy for garment enterprises generating new employment for
people of Karnataka domicile only for a period of 5 years where minimum
employment is 200 persons or above for medium enterprises and 500 persons or
above for large enterprises.
Wage Subsidy for Medium & Large Enterprises
Zone 1 Zone 2 Zone 3 Zone 4
-
xii
Karnataka has strong garment industry since a long time. Garment manufacturing
women friendly employment orientation and provides employment to large
opportunities, the New Textile and Garment Policy2019-2024 will be giving
people of Karnataka domicile only for a period of 5 years where minimum
employment is 200 persons or above for medium enterprises and 500 persons or
above for large enterprises.
Wage Subsidy for Medium & Large Enterprises
Zone 1 Zone 2 Zone 3 Zone 4
-
xiii
3.2 AmendedGuidelines:
· The Total Incentives drawn as per provisions under the policy shall not exceed as
follows:
xiv
1. Points(a): Eligibility
a. Eligibility: Individual / SPV formed by the user industry comprising of a
group of entrepreneurs would be eligible for grant support subject to the
following:
a. Eligibility: Individual Legal Entity / SPV formed by the user industry
comprising of a group of entrepreneurs would be eligible for grant support
subject to the following:
The Word Individual shall be replaced with Individual Legal Entity under the Heading
12.1 Common Infrastructure for Greenfield Textile Parks.
2. Point(c): Funding
The Individual would be provided one time grant support for the Development
of common infrastructure for Greenfield parks of up to 25% of the Project cost
of INR 25Crores per park project, which ever is less irrespective of the zone
they are in. The SPV would be provided one time grant support for the
development of common infrastructure for Greenfield Park of up to 40% of
the project Cost of INR 40 Crores per park project, whichever is less
irrespective of the zones they are in. Also, Projects which are already approved
and are being funded under any central government scheme may receive fresh
approval under such schemes, during the policy period, where only an
additional 10% of the project cost will be provided as supplementary state
government incentive to such park projects. The Grant Support will be
provided in four equal instalments from the government. The Milestones for
disbursement of incentives will be detailed out in the Operational manual of
the policy, which will also set the respective development milestones.
xvi
By Order and in the Name of the
Governor of Karnataka
xvii
xviii
Contents
Preamble
1 Textile and Apparel Sector 1
1.1 Indian Market Scenario 1
1.2 Karnataka Market Scenario 2
1.3 Changing Inter-State and International Landscape 4
2 Definition 4
3 Vision, Mission, Strategy & Roadmap 8
3.1 Vision 8
3.2 Mission 8
3.3 Strategies 8
3.4 Roadmap 8
4 Thrust Sectors for Intervention 9
5 Policy Targets 10
6 Segment wise Initiatives 10
6.1 Ginning 10
6.2 Spinning 11
6.3 Weaving (Handlooms and Powerlooms) 12
6.4 Processing 14
6.5 Integrated Units 15
6.6 Garmenting 15
6.7 Fashion/Buying Houses 16
6.8 Technical Textiles 17
6.9 Silk 18
6.10 Wool 19
7 Dovetailing of Support under other Schemes 19
xix
8 Policy Incentives Offered for Textiles 20
8.1 Credit Linked Capital Subsidy 20
8.2 Interest Subsidy 21
8.3 Power Subsidy 21
8.4 ESI & EPF Subsidy 22
8.5 Stamp Duty Exemption and Concessional Registration Charges 23
8.6 Effluent Treatment Plant for existing and new units 23
9 Policy Incentives Offered for Garments 24
9.1 Credit Linked Capital Subsidy 24
9.2 Interest Subsidy 24
9.3 Power Subsidy 25
9.4 Wage Subsidy 25
9.5 Stamp Duty Exemption and Concessional Registration Charges 25
9.6 ESI & EPF Subsidy 26
10 Special Package for Mega Units 26
11 Cap on Incentives 27
12 Infrastructure Development 27
12.1 Common Infrastructure for Greenfield Textile Parks 28
12.2 Brownfield Cluster Development 30
12.3 Common Effluent Treatment Plant and Hazardous Waste Disposal Facility 30
13 Human Resources Development & Skill Up-gradation 31
xx
14 Capacity Building Support 33
15 Centre of Excellence for Textiles/Technical Textiles 36
16 Planned Budget Outlay for the Policy Implementation 37
17 Review / Monitoring 38
18 Administration of the Policy 39
Annexure 1: Snapshot of Investments under Nuthana Javali Neethi (2013-2018) 41
Annexure 2: Budget for New Textile and Garment Policy 2019-2024 44
Contactable Directors Address and Telephone Numbers 46
xxi
Preamble
Karnataka has always had an enduring tradition of tapping the best across India and the
World to trace a steady growth curve across diverse sectors of the economy. The
transformative journey of textiles in Karnataka has already begun in the pursuit to foster
best in-class textile manufacturing, advanced production technologies resulting in smart
textile value chain, manufacturing processes and end-to-end ecosystems.
Acknowledging the contribution of textile and garment sector in terms of industrial
production, employment generation, particularly for women, and export earnings to the
economy of Karnataka the time has come to launch the state for higher and sustainable
growth at all stages of the textile value chain and position as a leading destination in the
Textile and Apparel sector in the country and to make textile value chain into gold mine
value chain.
Against this changing landscape and the decision to re-appraise the present policy to
redefine the objectives, targets, strategies to exploit the opportunities and evaluation of
the implementation of the Textile Policy, “Nuthana Javali Neethi 2013-18” in the State
(Annexure-1), a comprehensive and well-designed New Textile and Garment Policy
2019-24,Government of Karnataka has been formulated.
1 Textile and Apparel Sector
1.1 Indian Market Scenario
India's textile and apparel sector has seen a wave of strong positive change and is
expected to export approximately USD 350 billion of textiles and apparel and attract
investments worth USD 180-200 billion by 2024. The textile sector is the largest
industrial employment provider in India, employing more than 100 million people
directly and indirectly. The sector contributes 5 per cent to India's GDP, 14 per
cent to industrial production, and 13 per
cent to exports. The textiles sector has Macroeconomic Indicators of the Textile
and Apparel Industry in India
witnessed an increase in investment
during the last five years. The industry Contribution to India GDP 5%
(including dyed and printed) attracted Contribution to industrial

14%
production of India
foreign direct investment (FDI) worth
USD 29.74 billion during April 2000 to Contribution to export earning 13%
June 2018, as per Department of Employment Generation 100 million
Industrial Policy and Promotion (DIPP)
Projected Export earnings by USD 350
statistics. 2024 billion
India is the world's second largest Projected Investment required 200 USD
exporter of textiles and clothing. by 2024 billion
1
According to the recent data published by Directorate General of Commercial
Intelligence and Statistics (DGCI&S) under the Union Ministry of Commerce, exports
of textiles and apparel from India have increased by 11 per cent in July2018 to INR
196.36 billion (USD 2.86 billion) compared to INR 176.92 billion (USD 2.74 billion)
for the same month last year. Also, total textiles exports witnessed a jump of 15 per
cent to INR 108.79 billion (USD 1.58 billion) for July 2018 as compared to INR 94.29
billion (INR 1.46 billion) during July, 2017.
India has strengths in terms of raw material availability, manpower availability, large
domestic market, presence of complete manufacturing value chain and government
support. Abundant availability of raw material such as cotton, wool, silk and
jute and skilled workforce has made India a leading sourcing hub for the global
market. The textile sector is dominated by cotton, with a share of over 65 per cent of
the total mill fibre consumption in the country. India accounts for about 14 per cent
of the global production of textile fibre and yarns.
All the support extended by the Central Government, including INR 1,300 crore
Samarth scheme for skilling, INR 6000 crore package for Apparel & Made-ups along
with various State Incentives, is expected to create a strong turnaround in textiles
and clothing sector.
1.2 Karnataka Market Scenario
Karnataka is one of the fastest growing State in India, propelling the country's
growth to greater heights. With a USD 189 billion globalized, market-based
economy growing at 7.6 per annum the State has already taken a number of
initiatives to enhance its stature as one of the leading high-tech industrialised States
in the country. Karnataka has been at the forefront of development and is the fourth
largest economy of the country. The State
has been a pioneer on many fronts, a leader Macroeconomic Indicators of the Textile
in many economic sectors and has Industry in Karnataka
consistently provided an environment that Contribution to Garment 20%

nurtures the spirit of innovation and Production in India
entrepreneurship. Karnataka has made a Contribution to State GSDP 0.50%
mark internationally as a leading exporter
Contribution to Mulberry Silk 49%
and manufacturer of textiles and apparel Production in India
globally.
Contribution to Wool 12%
Karnataka the Garment Capital of India has Production in India
been one of the leading contributors in the Contribution to Cotton 6%

growth of textiles and apparel market in Production in India
2
India. With 20 per cent of the national garment production of the country, Karnataka
has contributed almost two-thirds to the State's industry output. The state has an
important share in the export of raw material and also a good share in the country's
exports in merchandise exports, readymade garments and handlooms. Karnataka's
exports amounted to about INR 5,48,890 crore in 2016-17 which constituted about
18.78 per cent of the country's exports. Also, the State has a high impact on the
production of raw materials, and is one of the leading producers of silk in the
country. It contributes 49 per cent to mulberry silk, 12 per cent to wool and 6 per
cent of cotton production in the country.
Karnataka has large manufacturing capacities across the complete manufacturing

value chain viz. natural and manmade fibre production, spinning, weaving, knitting,
processing, garmenting, made- ups and technical textiles. There are 17 spinning
mills in the State with a total capacity of about 3.57 lakh spindles. The State also has a
significant presence of power looms where about 1,20,000 looms are engaged in
weaving of silk and cotton. Power looms are mainly concentrated in Belagavi,
Bagalkote, Tumkur, Bangalore Urban and Rural Districts. The State has been
successful in achieving the status of a leading market for technical textiles, such as
buildtech, clothtech, hometech, medtech with Mysore, Hassan and Bengaluru have
emerged as leaders and growth beds of technical textiles.
The first integrated textile park has been established in Doddaballapura, which is 48
acre park with 85 units focusing on weaving, sizing and warping, and is expected to
generate employment of 7,000 people. KIADB has set up a textile SEZ in Hassan
spread across 474.40 acres and is strategically located to serve as an international
business hub for South-East Asia, Africa, Middle East Asia and SAARC nations. Also,
Binary Apparel Park Pvt. Ltd., Greenfield Textile Park has been set up at Hiriyur,
3
Chitradurga district.Karnataka has been at the forefront of capacity building and
enhancement of skills for the textile and apparel manufacturing workers. The
Department of Handloom and Textile has funded 144 Skill Development Centers and
168 private training centres and has trained 1,65,200 personnel till date.
1.3 Changing Inter-State and International Landscape
The global textile and apparel industry has seen a structural shift in terms of
manufacturing locations where most of the manufacturing has shifted to the
emerging markets, such as Ethiopia, Vietnam, Bangladesh, Turkey and China due to
their manufacturing cost competitiveness. Also, with growing competition from
Maharashtra, Andhra Pradesh, Telangana, Jharkhand and other states to attract
investments in the textile and apparel sector through lucrative incentives and
concessions such as increased capital subsidy, reduced power tariff to enhance cost
competitiveness, wage incentives, etc. there is a stronger need for Karnataka to be at
par at the sub-national and international level.
Therefore, with an aim to position Karnataka as a competitive textile and apparel

manufacturing hub, the New Textile and Garment Policy (2019-2024), which is
expected to attract investments worth INR 10,000 crore, will provide many benefits
including: a) increased capital subsidy for spinning mills, modernisation of power
looms (Air-jet looms, rapier looms, electronic jacquard), processing units,
integrated units and technical textiles; b) competitive power tariff and additional
incentive on use of non-conventional/renewable sources of power and c) Enhanced
Skill Development support. The policy also lays special focus on increasing the wage
competitiveness in the State by offering wage incentives for new textile and garment
units which will create ample employment opportunities for women.
2 Definition
The Textile and Garment industry to be covered under this policy will include all
units, which are engaged in various value chain activities of the industry such as
Spinning, Weaving (Power loom and Handloom) including pre loom activities,
Knitting, Processing, Integrated Units, Garmenting, Technical Textiles, Textile
machinery manufacturing and all other ancillary activities.
Enterprise: An enterprise classified as micro, small, medium (MSME), large, mega

and anchor units during the policy period have been defined separately for textiles
and garments in the table below.
4
Enterprise Textile Garment
MSME Ministry of Micro, Small and Medium Ministry of Micro, Small and Medium
Manufacturing Enterprises, Government Manufacturing Enterprises, Government of
of India notification dated: 01.06.2020 India notification dated: 01.06.2020
= A Micro Enterprises, where the
= A Micro Enterprises, where the
investment in Plant and Machinery or investment in Plant and Machinery or
Equipment does not exceed INR 1 crore Equipment does not exceed INR 1 crore
and turnover does not exceed INR 5 and turnover does not exceed INR 5 crore.
crore.
= A Small Enterprises, where the
= A Small Enterprises, where the
and turnover does not exceed INR 50 and turnover does not exceed INR 50
crore. crore.
= A Medium Enterprises, where the = A Medium Enterprises, where the
and turnover does not exceed INR 250 and turnover does not exceed INR 250
crore. crore.
Large An industrial Unit which is not An indusrial Unit which is not classified
classified as micro, small and as micro, small and medium enterprise
medium enterprise and with an and with an investment upto INR 200
investment upto INR 300 crore shall crore shall be classified as large
be classified as large enterprise. enterprise.
Employment : Minimum of 200 for Employment : Minimum of 2000 for the

the first INR 100 crore and additional first INR 100 crore and additional 1000
75 employment for every additional employment for every additional
investment of INR 100 crore investment of INR 100 crore
proportionately. proportionately.
Mega Projects with an investment in fixed Projects with an investment in fixed

assets above INR 300 crore shall be assets above INR 200 crore shall be
classified as mega enterprise. classified as mega enterprise.
Employment: minimum of 350 for Employment: minimum of 3000 for

the first INR 300 crore and the first INR 200 crore and additional
additional 75 employment for every 1000 employment for every additional
additional investment of INR 100 investment of INR 100 crore
crore proportionately. proportionately.
Anchor Textile unit first of its kind in a taluka Garment unit first of its kind in a taluka
Enterprise where no other textile unit has to where no other garment unit has to
/Industry been set up till the notification of this been set up till the notification of this
(For first policy. The minimum investment policy. The minimum investment shall
two shall be INR 100 crores and the unit be INR 50 crores and the unit shall
units only shall employ at least 200 direct employ at least 1000 direct employees
in a taluka) employees to be classified as Anchor to be classified as Anchor Enterprise /
Enterprise / Industry. Industry.
5
a) Existing Project: Any project existing prior to the announcement of this policy and any
project coming under expansion / diversification / modernization during the period of this
policy.
b) New Project: New project shall mean unit which undertake to invest on fixed assets on or
after the announcement of this Policy. This will include the unit which have taken effective
steps on or before the announcement of this Policy and could not fulfill the conditions
stipulated for qualifying as pipeline unit under Nuthana Javali Neethi 2013-2018.
c) Pipeline Project: The Project under implementation under two policy period or pipeline
projects will be defined in the Operational Manual.
d) Project Cost/ Fixed Assets: For the purposes of calculation of incentives under the policy,
Project Cost / Fixed Assets would be defined as assets created for the project and would
include Factory Building, Infrastructure including land cost (other than land
development), Plant & Machinery, ETP and other Productive Assets with Transportation,
Erection & Electrification and construction of housing / dormitories by themselves (for up
to 50 per cent of their workers/ employees).
e) Expansion Project: Existing units in the Textiles and Garment sector would be considered
as units undergoing capacity expansion, in case they have invested in plant and
machinery, for expanding in the same business or sub sector.
f) Diversification Project: Existing units in the Textiles and Garment sector would be
considered as units undergoing diversification, in case they have carried out either
backward or forward Integration, within the textile value chain. The said integration may be
the immediate activity within the backward or forward chain or any activity of the value
chain.
g) Modernization/Technology Upgradation: Existing units in the Textiles and Garment

sector would be considered as units undergoing modernization / technology up-gradation,
in case they have plant and machinery of certain kind and they have brought in plant and
machinery of an upgraded version as a replacement of the existing plant and machinery (as
specified under TUFS Scheme of Government of India) within the unit. Also, installation of
shuttle-less rapier loom, airjet looms, electronic jacquard and to any loom based on
advanced technology.
h) Textiles: includes all activities other than garments and apparel sector.
I) Garmenting: Units manufacturing garments and apparels would be classified as

garmenting units.
6
j) Thrust Sectors: With an aim to boost the local economy and to create a holistic textile and
apparel ecosystem in the State the following sectors have been identified as thrust sectors
for interventions in the New Textile and Garment Policy 2019-2024 and would include the
following:
i. Spinning
ii. Weaving
iii. Integrated Units
iv. Processing
v. Technical Textiles
k) Other Areas: would include other areas in textiles which are not defined as thrust sectors.
l) Sizing: Units doing the process of applying adhesive coating on the surface of yarn after
completing the warping process would be classified as sizing units.
m) TUF Scheme: Amended Technology Upgradation Funds Scheme (A-TUFS) of the Central
Government or any scheme amended by the Central Government from time to time.
n) Zonal Classification is as under:
i. Zone 1: Entire Kalyana Karnataka Region.
ii. Zone 2: All areas other than Municipal Corporations, District Headquarters in Non
Kalyana Karnataka region.
iii. Zone 3: All Municipal Corporations and District Headquarters in Non Kalyana
Karnataka region.
iv. Zone 4: Bangalore Urban
Bidar
Bidar
Kalburgi
Bijapur
Yadagiri
Zone 1 Kalburgi
Bagalkot
Belgaum Raichur
Zone 2 & Zone 3

Dharawada Koppal Yadagiri
Gadag
aya
n ag
ara Bellary Zone 4
Uttara Kannada Vij
Haveri
Davangere Raichur
Chitradurga
Shimoga
Chikkaballapura
Koppal
Udupi Chickmagalur
Tumkur
re
y
ara llar
alo
ng al)
Ba (Rur
ag Be
Dakshina Hassan
Bangalore
Kolar
ayan
Vij
Kannada (Urban)
Mandya Ramanagar
Kodagu
Mysore
Chamrajnagar
Kalyana Karnataka Region
7
3 Vision, Mission, Strategy & Roadmap
3.1 Vision
The State’s New Textile and Garment Policy aims to position Karnataka as a leading
destination in the Textile and Apparel sector in the country and to make textile value chain
into gold mine value chain. The Policy will provide a stimulus to the textile industry in the
State and aims to generate 5 lakh new employments in the next 5 years and attract
investments worth INR 10,000 crore.
3.2 Mission
To retain Karnataka’s position as the Garment Capital of India and to achieve higher and
sustainable growth in the entire textile value chain through capital infusion, technology
transfer, world class infrastructure and skill up-gradation.
3.3 Strategies
a) To accelerate growth and increase manufacturing cost competitiveness in the
entire textile value chain from fibre to fashion products.
b) To give special focus on spinning, weaving (rapier loom, air jet looms and electronic
jacquard), integrated units, processing and technical textiles as thrust sectors of the
policy to create an internationally competitive textile industry in the State.
c) To make Karnataka a skill rich State in each segment of the textile value chain and
develop high tech advanced skilling centers for skilling, re-skilling and up-
gradation of skills as per the needs of the industry.
d) To realise “Zero Effect; Zero Defect” at each level of the textile value chain by
attracting large scale investments for manufacturing world class facilities and
promoting ZLD Technology.
e) To increase the share of handloom exports and support designing, product
diversification, branding, marketing and distribution of handloom products to
distinct international markets.
f) To position Karnataka as a significant manufacturing hub and a net exporter of
Technical Textiles.
g) To become the retail destination and give a boost to the growth of buying houses
and international apparel retailers in Karnataka.
3.4 Roadmap
The Department of Handlooms & Textiles shall implement the policy with
concentrated and synchronized efforts. To administer the policy, the Department of
Handlooms and Textiles would co-ordinate with various committees and stakeholders
of the industry from time-to-time for implementation of the policy. Local associations
in every district will also promote and create awareness of the Policy within the
district.
8
4 Thrust Sectors for Intervention
With an aim to boost the local economy and to create a holistic textile and apparel
ecosystem in the State the following sectors have been identified as thrust sectors for
interventions in the New Textile and Garment Policy 2019-2024 and include the following:
a) Spinning: with an aim to boost conversion of cotton production into yarn preparation,
special focus would be given to units investing in spinning mill manufacturing higher
count and compact yarn.
b) Weaving: special focus would be given to units investing in rapier loom, air jet looms
and electronic jacquard.
c) Integrated Units: Textile and Garment units housing more than one value chain activity
of textiles at single location, by one entrepreneur would be classified as integrated units.
d) Processing: Units to have yarn dyeing facility, scouring, bleaching, mercerizing, dyeing,
finishing and printing.
e) Technical Textiles: are defined as textile materials and products used primarily for
their technical performance and functional properties rather than their aesthetic or
decorative characteristics. Depending on the product characteristics, functional
requirements and end-use applications, the highly diversified range of technical textiles
have been grouped into 13 sectors, application-wise.
= Agrotech (Agriculture, Horticulture and Forestry)
= Buildtech (Building and Construction)
= Clothtech (Technical components of shoes and clothing)
= Geotech (Geo-textiles and Civil Engineering)
= Hometech (Components of furniture, household textiles and floor coverings)
= Indutech (Filtration, cleaning and other industrial usage)
= Meditech (Hygiene and Medical)
= Mobiltech (Automobiles, Shipping, Railways and Aerospace)
= Oekotech (Environmental Protection)
9
= Packtech (Packaging)
= Protech (Personal and Property Protection)
= Sporttech (Sport and Leisure)
= Defencetech (Textile for defence use)
= Any other product as notified by Ministry of Textiles, Government of India, time to
time
The details of the various initiatives for the mentioned thrust sectors is mentioned in
section 6. The Thrust sectors can be modified /amended as and when required by HLEC.
5 Policy Targets
The New Textile and Garment Policy 2019-2024 envisages an ambitious investment outlay
of INR 10,000 crore and aims to generate employment to 5,00,000 people approximately
during the policy period i.e. 2019 to 2024.
Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Total
Investment 1,000 1,500 2,000 3,000 2,500 10,000

(in INR crore)
Employment 50,000 75,000 1,00,000 1,50,000 1,25,000 5,00,000
6 Segment wise Initiatives

6.1 Ginning
Cotton is grown in abundance in North Karnataka and produces nearly 40 lakh bales per
year. However, spinning mills are consuming only 10% of the cotton grown and rest of the
90% of the cotton is being sold to spinning mills of the neighboring states. Currently there
are about 850 ginning units in Karnataka. The new policy would support and promote the
growth and development of ginning units in the State.
10
Specific interventions for ginning to be supported under the new policy are as follows:
a) Support and promote the growth of long staple cotton grown in the State.
b) Support to modernize the technology used in ginning and pressing.
c) Skill Development support to develop need-based skills for ginning.
6.2 Spinning
Karnataka is an important cotton growing State in the country and produces about 6 per
cent of the total cotton produced in the country. Although Karnataka produces about 6 per
cent of the total cotton produced in the country there are only 17 spinning mills in the state
with a total capacity of about 3.57 lakh spindles. In the Co-operative Sector there are 11 Co-
operative spinning mills in the State of which only 3 co-operative spinning mills are
working. The mill sector is facing major problems on the account of various reasons such as
outdated machinery in use, lack of skilled labour available and increasing power costs (due
to higher unit costs + use of diesel gensets to keep the production going). Therefore, in order
to revive the spinning sector there is a dire need of bringing in modern technology to adapt
new manufacturing techniques which would thereby increase the productivity of spinning
mills and reduce the cost of yarn. The New Textile and Garment Policy 2019-2024 identifies
spinning as a thrust area where the following measures will be undertaken to bring the
spinning industry to the forefront of the State’s economy:
a) Capital subsidy to modernize the spinning mills with the latest spindle technologies to
achieve lower energy consumption.
b) Encourage units to use non-conventional sources of power by providing concessional
rates.
c) Skill Development support to develop need-based skills for spinning.
11
6.3 Weaving (Handlooms and Powerlooms)
Handloom sector in Karnataka has been able to create some strong geographical indicators
especially in silk sarees and traditional handloom sarees and dress material. Handloom
sector employs a large number of women folk and thrives on inherited skills and patronage
by rural population and connoisseurs of art. Karnataka has about 40000 handlooms
and are engaged in weaving of silk, cotton and wool. There has been an increase in
production and generation of employment by the handloom sector in Karnataka.
Handicraft exports amounted to INR 608.11 crores during 2017-18. However, due to
the low levels of modernization, availability of credit in required quantum and
marketability of produce, handlooms sector would need to be supported in
enhancing viability through the new policy. For the purposes of support to the
Handloom sector, 5% of the total planned outlay will be earmarked during the policy
period. Specific interventions for the handloom sector to be supported under the
new policy are as follows:
a) Develop an extensive strategy to increase the share of handloom exports to
distinct international markets.
b) Capacity Building support for Marketing, Branding & Product Designing.
c) Showcase handloom products on the e-commerce platform and also help in
direct marketing.
d) Support to set up the Common Facility Centers/ dyeing units with modern
environmentally acceptable waste water management techniques.
e) Skill Development support and training modules will be developed to provide
need-based skills for the handloom sector.
f) Create Market Hubs to provide backward and forward linkages to market
products through regular events and shops.
g) Brand equity of handlooms will be commercially exploited to the extent possible.
12
Karnataka has a significant presence of power looms. There are about 1,20,000
looms engaged in weaving of silk and cotton. Power looms are mainly concentrated
in Belagavi, Bagalkote, Tumkur, Bangalore Urban and Rural Districts. The power
loom sector would be supported and strengthened in order to modernize
production technologies, such that they are able to supply good quality fabrics in the
required quantum.
a) Capital subsidy support to modernize:
4 Conversion of simple powerloom to Semi-Automatic shuttle loom
4 Conversion of Semi-Automatic shuttle loom to Shuttle less rapier loom
4 Conversion of simple powerloom to Shuttle less rapier loom
b) Assistance for latest developments in off-loom fabric winding technology and
material handling for weaving mills.
c) Skill Development support to train weavers to create designs for jacquard and
dobby looms
d) Provision of wage subsidy to foster growth and employment generation.
e) Promote sizing units and focus on cluster based activities (warping, sizing, etc.)
f) Creation of awareness and supportive measures for application of IT for
upgradation of technology, enhancement of efficiency, productivity and
quality.
13
6.4 Processing
In order to carry out all the activities from Farm to Fashion, there is a need to give a
greater thrust for developing post spinning activities such as processing. The
existing process house in the State have outdated technologies and lack complete
sequence of activities such as, desizing, scouring, bleaching, dyeing, finishing and
printing. Therefore, in order to achieve integrated ‘Farm to Fashion’ value chain in the
State, specific interventions for processing to be supported under the new policy are
as follows:
a) Government will encourage setting up of modern processing units with latest

technologies meeting international quality and environmental norms.
b) Additional capital subsidy support for machinery required for ZLD / ETP / CETP
in the processing project.
c) Processing projects having ZLD / ETP / CETP will be provided with electricity at
concessional rates since the costs of operating the ZLD / ETP / CETP projects and
the hard waste disposal are very high.
d) Encourage establishment of common modern processing units under PPP near

powerloom clusters.
e) Skill Development support to develop need-based skills for processing.
14
6.5 Integrated Units
The integrated textile units include spinning, weaving and processing under one
roof. The leading global brands of the world source their yarn and fabric from world
class integrated textile units across the globe. With a vision to export the finished
product rather than cotton and yarn, the new textile policy will encourage integrated
units to convert long staple cotton grown in Karnataka into finer yarn and thereby
into finer fabric. Specific interventions for integrated units to be supported under the
new policy are as follows:
a) Support up-gradation (i.e. units going for up-gradation in spinning, weaving and
processing).
b) Assistance to bring in modern technology to adapt to new manufacturing
techniques to increase the productivity.
c) Skill Development support will be provided to develop need-based skills for
integrated units.
6.6 Garmenting
15
Karnataka has a strong garment industry and the sector has witnessed a growth in
investments in the State. Garment manufacturing industry is highly labour intensive
and less capital intensive. This industry has a women-friendly employment
orientation and provides employment to large number of women. During the last
policy period (2013-2018) maximum employment was generated in the garment
segment employing 1.18 lakh persons. Since this sector has potential to create new
employment opportunities, the New Textile and Garment Policy 2019-2024 gives a
special thrust to the garment sector. Specific interventions for garment units to be
supported under the new policy are as follows:
a) Provision of wage subsidy to foster growth and employment generation.
b) Joint ventures and strategic alliances with leading world manufacturers will be
promoted.
c) Special focus and boost the growth of buying houses and international apparel
retailers in the State.
d) Skill Development support to develop need-based skills for garment and apparel
manufacturing.
6.7 Fashion/Buying Houses
Fast fashion is gaining traction and there are many factors that make Karnataka a
sought-after market for foreign retailers as it is a textile and apparel-manufacturing

hub that provides a faster and more economical route to the source of production.
Therefore, with an aim to become the retail destination and in order to give a boost to
the growth of buying houses and international apparel retailers in Karnataka the
Policy will encourage the companies / units to establish their warehouses and
registered offices in Karnataka.
16
6.8 Technical Textiles
Technical Textiles is one of the major emerging sectors in the textile value chain and
Government of Karnataka is putting a special thrust on developing the technical
textiles sector in the State. Karnataka has the potential to become the global hub for
the manufacturing of technical textiles and non-wovens, for which there is a huge
national and international market. Karnataka has been a leading market for
technical textiles, such as buildtech, clothtech, hometech, medtech with Mysore,
Hassan and Bengaluru emerging as leaders and growth beds of technical textiles.
Therefore, to facilitate emerging technical textiles in critical areas such as
production, technology and research & development. The New Textile and Garment
Policy would give a special thrust to Technical Textiles and will encourage integrated
development of the sector aiming to achieve the sustainability of the textile units in
the State.
Specific interventions for technical textiles to be supported under the new policy are
as follows:
a) Centre of Excellence for Technical Textiles in association with academia will be setup in
the State.
b) Assist in development of standard technical textile products and users in adopting the
technical textile products.
c) Encourage R&D projects in the field for development of technical textile fibres (natural
& synthetic fibres).
d) Support new product development, channelize production and marketing activities of
technical textile products.
e) Facilitate dissemination of information through sample exhibits, awareness
programmes, publication of books and papers and technical know-how to the
manufacturers and users of technical textile products.
17
6.9 Silk
Karnataka is the largest producer of mulberry silk in India. Around 49 per cent of the
country’s mulberry silk is produced in Karnataka. During 2016-17, the estimated
mulberry silk production in India was about 19,533 metric tonnes of which
Karnataka's share was 9571 metric tonnes. Mysuru and North Bengaluru in
Karnataka are famous for their silks and are called the “Silk City” as they majorly
contribute to the silk production in India. There is a need for diversification in the silk
industry in Karnataka in order to face the demand - supply challenges and also to
position itself strongly in the international market. Considering the importance of
silk industry and its scope for generating employment, the following measures will
be undertaken to bring the silk industry to the forefront of the State’s economy.
a) Private sector involvement will be promoted to sustain sericulture.
b) Capital subsidy support to silk entrepreneurs, weavers and weavers’ groups for
silk dyeing / processing / weaving machinery.
c) Encourage clustering of activities of reeling and weaving and strengthen

linkages between the producers and industry.
d) Create Market Hubs to provide backward and forward linkages to market

products through regular events and shops.
e) On Skill Development/Training, Central Government skill initiatives such as

“SAMARTH” will also be implemented in the state.
18
6.10 Wool
Karnataka produces nearly 12 per cent of India’s total wool production. The wool
exports amounted to INR 6.06 crores and wool production was nearly 2663 tonnes
during 2017-18 (upto November, 2017). Availability of value added processing and
marketing facilities for wool in the State will result in employment generation.
Following measures will be undertaken to achieve this:
a) Capital subsidy support for setting up modern woollen yarn spinning units.
b) Develop market linkages by setting up woollen marketing complexes in woollen
cluster areas.
c) Focus on diversification of woollen end products.
d) Infrastructure support for woollen product development such as plant for non-
woven and woven products, facilities for spinning, weaving, dyeing, processing
and finishing.
e) Augment efforts to monitor and manage the procurement, processing,
production and marketing of wool.
f) Skill Development support to develop need-based skills.
7 Dovetailing of Support under other Schemes

The assistance available under various schemes of Central Government such as
TUFS of Ministry of Textiles, Government of India may be dovetailed by the Group of
Entrepreneurs/Industry Associations/SPVs/Units with the support available
under this Policy. However, the contribution by the industry shall not be less than 15
per cent of the cost of each project, in case of such dovetailing.
The projects approved under this policy will not be eligible to claim incentives and
concessions under Industrial Policy of the State.
19
8 Policy Incentives Offered for Textiles
8.1 Credit Linked Capital Subsidy
a) Credit Linked Capital Subsidy for MSME Enterprises: New/Expansion/

Modernisation / Diversification Enterprises will be eligible for capital subsidy
on the eligible Fixed Assets as per the limits indicated below for Thrust Sectors
and Other segments.
Capital Subsidy for MSMEs
Segments Zone 1 Zone 2 Zone 3 Zone 4
30% of 25% of 20% of

Thrust Sectors
Fixed Assets Fixed Assets Fixed Assets
-
25% of 20% of 15% of
Others
Additional 5% capital subsidy on the value of Fixed

Additional
Assets for SC/ST persons / Persons with disabilities/
Subsidy Minority/ Ex- servicemen/Women
b) Credit Linked Capital Subsidy for Large Enterprises: New / Expansion/

Modernisation / Diversification Enterprises will be eligible for capital subsidy on the
eligible Fixed Assets as per the limits indicated below for Thrust Sectors and Other
segments.
Capital Subsidy for Large Enterprises

25% of 20% of 15% of
Thrust Sectors
20% of 15% of 10% of
Others
Fixed Assets Fixed Assets Fixed Assets -
Additional 5% capital subsidy on the value of Fixed

Additional
Assets for SC/ST persons / Persons with disabilities/
Subsidy
Minority/ Ex- servicemen/Women
20
8.2 Interest Subsidy
In order to facilitate the entrepreneurs, textile units for hassle free operations,
financial assistance will be provided to them in form of interest subsidy.
Interest subsidy will be provided for medium and large units only at 5% per
annum on term loans for the first 5 years.
Interest Subsidy for Medium & Large Enterprises *

Thrust Sectors 5% per annum Interest Subsidy on Term Loans
-
Others for the first 5 years
8.3 Power Subsidy

Among the biggest issues of the textile industry today is the demand for energy
savings and the call for achieving lower energy consumption.
Reimbursement of cost of power paid by units for all value chain activity of
textiles including technical textiles and use of non-conventional sources of
power (purchased from Government or Private). In case of Hi-tech
Powerloom units, power connection should be above 20 HP. The subsidy will be
valid for a period of 5 years from the date of commencement of commercial
production.
a) Power Subsidy for MSME Enterprises
Power Subsidy for MSME

Reimbursement of cost of power paid at
Spinning
INR 2.0 for a period of 5 years
Weaving (airjet looms, Reimbursement of cost of power paid at
rapier looms, electronic INR 2.0 for a period of 5 years
jacquard)
Integrated Units -
Processing
Technical Textiles INR 1.0 for a period of 5 years
Others
Use of non- conventional/ Reimbursement of cost of power paid at
renewable sources of power INR 2.0 for a period of 5 years
21
b) Power Subsidy for Large Enterprises
Power Subsidy for Large Enterprises

Spinning
INR 2.0 for a period of 5 years
Weaving (air jet looms, Reimbursement of cost of power paid at

rapier looms, INR 1.0 for a period of 5 years
electronic jacquard)
-
Integrated & Reimbursement of cost of power paid at
Processing INR 2.0 for aperiod of 5 years
Technical Textiles Reimbursement of cost of power paid at

Others INR 1.0 for aperiod of 5 years
Use of non-conventional Reimbursement of cost of power paid at

/ renewable sources INR 2.0 for a period of 5 years
of power
8.4 ESI & EPF Subsidy

The Government will offer reimbursement of expenditure incurred on account of
employer’s contribution towards Employees State Insurance (ESI) / Employees
Provident Fund (EPF) for a MSMEs. Reimbursement would be made on actual
payments made by the entrepreneurs as per the invoiced record, for the MSME
Project. The support would be available for a period of five years from the date of
commercial production.
ESI & EPF Subsidy for MSME Enterprises
Thrust Sectors 75% reimbursement of employers contribution of wage

rate per employee per month for all the new units for a -
Others period of 5 years as EPF and ESI subsidy
22
8.5 Stamp Duty Exemption and Concessional Registration Charges
Stamp duty to be paid shall be exempted and concessional registration charges rate
of INR 1.00 per INR 1,000 in respect of (i) Execution of Lease, Lease-cum sale and
Sale deeds in respect of industrial land / plots allotted; (ii) Execution of Lease Deeds
in case of industrial sheds / plots taken on Lease and (iii) Loan and credit deeds,
including security documents such as mortgage deed, pledge deed etc., executed for
availing long term funds from banks / FIs and other agencies of GoK/GoI.
Stamp Duty Exemption and Concessional Registration Charges for MSME and
Large Enterprises
Thrust Sectors Stamp Duty Exemption and concessional registration

-
& Others charges rate of INR 1.00 per INR 1000
8.6 Effluent Treatment Plant for existing and new units
In order to promote green measures for cleaner and environment friendly

technologies and to encourage ZLD measures 50% capital subsidy or INR 5 crore
whichever is less for establishment of Effluent Treatment Plants (ETPs), will be
provided across all locations in the State for integrated and processing units.
23
9 Policy Incentives Offered for Garments
9.1 Credit Linked Capital Subsidy
a) Credit Linked Capital Subsidy for MSME Enterprises: New /Expansion
/Modernisation /Diversification Enterprises will be eligible for capital subsidy on
the eligible Fixed Assets as per the limits indicated below for Garmenting.
Capital Subsidy for MSME Enterprises
25% of Fixed 20% of Fixed 15% of Fixed

Garmenting -
Assets Assets Assets
Additional 5% capital subsidy on the value of Fixed Assets
Additional
for SC / ST persons / Persons with disabilities / -
Subsidy
Minority / Ex- servicemen / Women
b) Credit Linked Capital Subsidy for Large Enterprises: New /Expansion/

Modernisation / Diversification Enterprises will be eligible for capital subsidy on the
eligible Fixed Assets as per the limits indicated below for Garmenting.
Capital Subsidy for Large Enterprises

20% of Fixed 15% of Fixed 10% of Fixed

Garmenting -
Assets Assets Assets
Additional 5% capital subsidy on the value of Fixed Assets
Additional
for SC / ST persons / Persons with disabilities / -
Subsidy
Minority / Ex- servicemen / Women
9.2 Interest Subsidy

In order to facilitate the entrepreneurs, Garment units for hassle free operations,
subsidy will be provided for Medium & Large units only at 5% per annum on term
Interest Subsidy for Medium & Large Enterprises*

5% per annum Interest Subsidy on Term Loans for the
Garmenting -
first 5 years
24
9.3 Power Subsidy
Among the biggest issues of the textile industry today is the demand for energy
savings and the call for achieving lower energy consumption. Reimbursement of
cost of power paid by units for Garmenting. The subsidy will be valid for a period of 5
years from the date of commencement of commercial production.
Power Subsidy for Micro & Small Enterprises

Reimbursement of cost of power paid at INR 1.0 for a
Garmenting -
period of 5 years
9.4 Wage Subsidy

Karnataka has a strong garment industry since a long time. Garment manufacturing
women-friendly employment orientation and provides employment to large
opportunities, the New Textile and Garment Policy 2019-2024 will be giving
people of Karnataka domicile only for a period of five years where minimum
employment is 200 persons or above for Medium Enterprises and 500 persons or
above for Large Enterprises.
Wage Subsidy for Medium & Large Enterprises*
Zone-1 Zone-2 Zone-3 Zone 4
INR 3000 per
INR 2000 per employee -
employee
9.5 Stamp Duty Exemption and Concessional Registration Charges

Stamp duty to be paid shall be exempted and concessional registration charges rate
of INR 1.00 per INR 1000 in respect of(i) Execution of Lease, Lease-cum sale and Sale
deeds in respect of industrial land / plots allotted; (ii) Execution of Lease Deeds in
case of industrial sheds / plots taken on Lease and (iii) Loan and credit deeds,
including security documents such as mortgage deed, pledge deed etc., executed for
availing long term funds from banks / FIs and other agencies of GoK/GoI.
Stamp Duty Exemption for MSME and Large Enterprises

Stamp Duty Exemption and concessional registration
Garmenting -
charges rate of INR 1.00 per INR 1000
25
9.6 ESI & EPF Subsidy
The Government will offer reimbursement of expenditure incurred on account of

employer’s contribution towards Employees State Insurance (ESI) / Employees
Provident Fund (EPF) for a MSMEs. Reimbursement would be made on actual
payments made by the entrepreneurs as per the invoiced record, for the MSME
Project. The support would be available for a period of five years from the date of
commercial production.
ESI & EPF Subsidy for MSMEs
75% reimbursement of employers contribution of wage

Garmenting rate per employee per month for all the new units for a -
period of 5 years as EPF and ESI subsidy
10 Special Package for Mega Units
The Department of Handlooms & Textiles intends to promote and facilitate Mega
Projects units in Textiles and Garments which would have multiplier effect and
would be integral to the employment generation activity and inclusive sector
development in the State.
Case to Case Package of incentives /concessions will be considered for deserving

Mega Enterprises Units over and above the incentives /concessions mentioned for
Large Enterprises as per the following:
= Mega Units in Textiles- with investment in fixed assets above INR 300 crore and
minimum employment of 350 for the first INR 300 crore and additional 75
employment for every additional investment of INR 100 crore proportionately.
= Mega Units in Garments- with investment in fixed assets above INR 200 crore
and minimum employment of 3,000 for the first INR 200 crore and additional
1,000 employment for every additional investment of INR 100 crore
proportionately.
26
11 Cap on Incentives
· The total incentives drawn as per provisions under the policy shall not exceed
as follows
Region Sector Cap on Investment*
100% Cap on Fixed
Kalyana Karnataka Region Textiles
Capital Investments (FCI)
100% Cap on Fixed
Non Kalyana Karnataka Region Textiles
100% Cap on Fixed
Kalyana Karnataka Region Garments
100% Cap on Fixed
Non Kalyana Karnataka Region Garments
= Additional incentive of 5% of Fixed Capital Investment (FCI) for Thrust Sector

Units.
= Additional incentive of 5% of Fixed Capital Investment (FCI) for Anchor Units set
up across the State.
· Additional incentive of 5% for SC/ST Entrepreneurs / Persons with disabilities/

Minority/ Ex- servicemen/Women, over and above the standard package.
· The detailed guidelines to avail the sanctioned incentives will be mentioned in

the Operational Manual and the incentives will be disbursed over a period of five
years.
12 Infrastructure Development
27
12.1 Common Infrastructure for Greenfield Textile Parks
A cluster based development strategy would be continued for developing
Greenfield textile and garment industry parks in the State, to enable the industry in
cost reduction, enhanced quality and overall competitiveness. These Parks/Zones
could house integrated textile production facilities viz. Spinning, Weaving,
Processing, Garmenting and other ancillary units that may be required or sector
specific activities such as weaving or processing etc.
a) Eligibility: Individual Legal Entity/SPV formed by the user industry comprising
of a group of entrepreneurs would be eligible for grant support subject to the
following:
4 The Textile Park being developed shall have a minimum of 15 acres in size.
4 Individual Legal Entity from user industry can also come forward to set up
the Greenfield Textile Park/Common Infrastructure for Greenfield Textile
Park.
4 SPV (of one or five entrepreneurs from the user industry) should come
together to form an SPV. Associations can also join the SPV as a member.
4 The Individual Legal Entity/SPV shall hold 100% equity during the
implementation of the Project. On completion of the Project the Individual
Legal Entity/SPV shall hold a minimum of 51% of the equity with the
balance 49% held by strategic partners/ evelopers / Government agencies
etc. In case, the Individual Legal Entity/SPV wishes to dilute its equity stake
during the implementation of the Project the same shall be done by taking
the prior concern of the Department of Handlooms & Textiles, Government
of Karnataka
4 Minimum of 51% of the equity of the Individual Legal Entity/SPV to be held
by the user industry, the balance 49% could be held by strategic partners
/developers/ Government agencies etc.
b) Following components are eligible for subsidy:
4 Factory Building
4 Common Infrastructure such as:
· Compound Wall
· Roads
· Drainage System
· Sewage Treatment Plant
· Water supply
28
· Power supply including Captive Power Plant/ Alternative source of
power
· Common Effluent Treatment Plant
· Waste Disposal Facilities
· Telecommunication systems
· External infrastructure including Power, Water and Approach Roads up
to the doorsteps of the Park
4 Any other need based infrastructure (Building for Common Amenities such
as) :
· Testing Laboratory
· Design Center
· Training Center
· Trade / exhibition center
· Warehousing Facility
· Raw material Depot
· Worker facilities such as crè che, canteen, dormitories, recreation
facilities, etc.
· Office buildings of Service providers
· Buildings for Banks / ATM, etc.
· Building for fire-fighting, etc.
Land for the projects will not be an eligible component for funding of the
incentives; however, they can be a part of the Project Cost as required for Bank / FI
approvals and to be funded by the entrepreneurs themselves
c) Funding: The Individual Legal Entity /SPV would be provided one time grant
support for the development of common infrastructure for Greenfield Parks of
up to 40% of the project cost or INR 40 crores per Park project, whichever is less
irrespective of the Zones they are in. Also , Projects which are already approved
and are being funded under any Central Government Scheme may receive fresh
approval under such schemes, during the policy period, where only an
additional 10% of the Project cost will be provided as supplementary State
Government incentive to such Park Projects. The Grant Support will be provided
in four equal installments from the Government. The Milestones for
disbursement of incentives will be detailed out in the Operations Manual of the
Policy, which will also set the respective development milestones.*
29
12.2 Brownfield Cluster Development
Cluster based development strategy would be continued for developing the
existing industrial estates having textile units with an aim to achieve sustainable
growth and become internationally competitive through expansion or technology
up-gradation.
a) Eligibility:
w Individual / Special Purpose Vehicle (SPV) comprising of a group of
entrepreneurs with minimum of one or five members from the user
industry and / or Industry Associations for the purpose of developing
common facilities such as CETP/STP etc. for the existing industrial estates
having minimum 5 textile units.
w Common Infrastructure will be facilities such as CETP, STP, testing facilities
etc.
b) Funding: The Individual /SPV would be provided one time grant support for the
development of common infrastructure for Brownfield cluster of upto 40% of
the Project Cost or INR 12.00 crores per industrial estate project, whichever is
less irrespective of the Zones they are in. The milestones for disbursement of
incentives will be detailed out in the Operations Manual of the Policy, which will
also set the respective development milestones.
12.3 Common Effluent Treatment Plant and Hazardous Waste Disposal Facility
Today, the textile industry is facing an environment that uses tremendous amount
of materials and energy resources and produces a massive quantity of waste,
leaving a huge negative environmental impact. Achieving zero waste zero
discharge is one of the greatest challenges of the apparel manufacturing industry.
Therefore, it is proposed to provide one time subsidy for setting up Common
Effluent Treatment Plants / Hazardous Waste Disposal Facility.
30
a) Eligibility: Individual/SPV formed by the user industry comprising a group of
minimum of one or 5 entrepreneurs across all locations would be eligible for
grant support.
b) Project components: Project Cost for the purpose of grant support would
include the following components:
w Infrastructure like roads, water supply, power etc. (excluding land and land
development costs)
w Building
w Plant & Machinery
c) Funding: The one time grant support will be provided to the Individual / SPV
of up to 50% of the project cost and in case of Handloom projects, the subsidy
would be limited to 80% of the project cost. This one time grant support will be
inclusive of all other incentives. In case of the projects being funded under any
scheme of Government of India, the subsidy would be limited to 20% of the
project cost or INR 5.00 crores, whichever is less. The support would be
provided in four equal instalments. The milestones for disbursement of
incentives will be detailed out in the Operations Manual of the Policy, which will
also set the respective development milestones.
13 Human Resources Development & Skill Up-gradation
The pre-requisites for textile and garment industry to be globally competitive are
availability and quality of skilled manpower. Therefore, the policy provides
adequate priority and thrust on the skilling requirements in high value chain in
textile sector, need-based skills for various sub-sectors and developing the skill
landscape in Karnataka with a focus on skill development in textiles- up-
skilling / re-skilling; technology enabled skilling and developing the skilling
Infrastructure. It is targeted to generate at least 5 lakh employments and to train the
unemployed youth during the policy period
31
(a) Up-gradation of Textile Infrastructure and Funding support: will be
provided to repute institutions, who are into the academics/ skill development
in the textile value chain, for up-gradation of training facilities in the campus.
Up-to INR 1 crore funding support will be provided to the institutions on the
basis of approved DPR which should justify the textile infrastructure up
gradation. Three institutions will be supported for the textile infrastructure up-
gradation, during the policy period.
(b) Strengthening of Existing Institutes / Skill Development Centres (SDCs):

The Department of Handloom and Textile has funded 144 Skill Development
Centres and 168 private training centres and has trained 1,65,200 personnel till
date. Funding interventions by Department of Handlooms & Textiles would
include support towards training cost and would be as follows:
w In case training proponents have the requisite infrastructure and the

capacity to train and place beneficiaries in the textile and apparel sector,
they would be supported towards the training cost. If the infrastructure has
been created through the funding support from Department of Handlooms
and Textiles, the support towards training cost would be INR 9500 for SDCs
and INR 11000 for Private centres per beneficiary for 45 days. The detailed
segregation of the training cost would be as follows:
w Training Beneficiary Stipend- INR 3,500
w Support towards Raw Materials- INR 1,000
w Institutional Fee Support- INR 5,000 for SDCs and INR 6,500 for private
training centres.
w Any modifications to this can be decided by the HLEC.
(c) Support to New Project Implementation Agencies: In case large enterprises

have the requisite infrastructure and the capacity to train and place
beneficiaries in the textile and apparel sector, they would be supported towards
the training cost, subject to appropriate due diligence. In this case, the support
shall be INR 11,000 per beneficiary.
32
Funding Milestones:
(d) The grant support from the Government of Karnataka for the
training program will be based on two milestones:
4 The First milestone will be completion of training program- 100% stipend to

the beneficiary and 50% of the eligible fund will be made to the Training
Centres on achieving the first milestone.
4 The Second milestone will be on completion of 60 days, post placement of

beneficiary: Remaining 50% of the eligible payment will be made to the
Training Centres on achieving the second milestone.
(e) Placement Criteria: All training programs will be linked to the industry
requirement to ensure placements. A minimum of 80% of placement to be
achieved by the PIAs / Institutes.
14 Capacity Building Support
For Textile and Garment sector, there is a need to give

greater emphasis on capacity building and skill
development activities. Government of Karnataka
strives to provide hand holding and expertise
support to all stakeholders by equipping them
with necessary knowledge and skills to achieve
and sustain visible socio-economic development.
Capacity building initiatives that will be
supported during the policy period are as follows:
(a) Market Development and Branding: To enable

individuals/group of entrepreneurs / units to
effectively access the global and emerging domestic markets.
4 Eligibility: The eligibility for seeking support for the above initiative is as
follows:
w Individual or a group of minimum 5 entrepreneurs having units in the

State / Industry Associations.
w Individuals/SPVs/ Industry Associations developing Textile Parks/

Specific Textile Zones through Central or State Government assistance.
33
4 Project Components: The Project components that would be
funded will be as follows:
w Participation in International Exhibitions
w Business Delegations Abroad and Inward Missions
w Development of Websites / Brochures, etc.
w Undertaking Market Research Studies
w Engagement of International Market Development Consultants
w Development of Brands
w Publicity
w Other Marketing Initiatives
4 Funding: The funding support provided for this initiative would be 50% of
the project cost or INR 50 lakhs, whichever is less, with the balance being met
/arranged by the group of entrepreneurs / Industry Associations. Assistance
will be provided on reimbursement basis.
(b) Design Development and Product Diversification: To enable handloom
entrepreneurs/ units to develop new products through design development
4 Eligibility: The eligibility criteria for seeking support for the above initiative
are as follows:
w Individual/ a group of minimum 5 handloom entrepreneurs having
units in the State /Industry Associations / Co-operative Societies.
w Individuals/SPVs developing Textile Parks (handlooms)/Specific
Textile Zones through Central or State Government assistance.
4 Project components: The Project components that would be funded are as
follows:
w Cost of Designers engaged in Design & Product Development
w Cost of Raw Materials, Specialized Machinery, if any, etc.
w Testing, Standardization Expenses, etc.
4 Funding: The funding support provided for this initiative would be 50% of
the Project cost or INR 25 lakhs, whichever is less, with the balance being met
/ arranged by the group of entrepreneurs / Industry Associations / Co-
operative Societies. Assistance will be provided on reimbursement basis.
34
(c) Standards and Compliances: To enable the industry in adopting standards
for being compliant to various international trade requirements.
4 Eligibility: Any unit that obtains certification / accreditation under any of

the Internationally recognized / accepted standards such as:
w Bureau of Indian Standards
w ISO-9000 Quality Management System
w ISO-14000 Environmental Management System
w ISO-18000 Occupational Health and Safety Standards
w Social Accountability Standards
w Internationally accredited eco-labels OKE-TEX 100, etc.
w UN Environmental Programme Certification (a UN-led initiative

promoting socially responsible and sustainable business practices)
and the UN Economic and Social Commission for Asia and the Pacific
(UNESCAP)
w Any other internationally accredited certification that will enable

better market positioning
4 Funding: The funding support provided to an individual unit to the extent

of 50% of the cost or INR 5 lakhs, whichever is less, with the balance being
met / arranged by the beneficiary unit. Assistance will be provided on
reimbursement basis.
(d) Vendor Development and Facilitation: To further strengthen the MSME ecosystem
in the state and increase the competitiveness of the MSME sector, the Policy will aim at
promoting vendor development, management, facilitation and creating a platform to
connect anchor units with MSMEs and identify vendors in terms of production
capacity and quality standards.
(e) Entrepreneurship Development Program (EDP): To attain a considerable growth

and development in the Small and Medium Enterprises (SME) sector through
emerging efficient entrepreneurs. Higher education institutions in textile and
apparel sector shall be encouraged to conduct tailor-made Entrepreneur
Development Programmes. The programs shall provide the basic knowledge on
entrepreneurship qualities, with emphasis on skills and behaviors, to the emerging
entrepreneurs apart from disseminating the benefits of the textile policy and creating
awareness on technical part of textile sector.
35
15 Centre of Excellence for Textiles/Technical Textiles
Realizing the importance and growth potential of technical textile industry in the
years to come, the forth coming policy will focus on setting up a dynamic, competitive
and world class Centre of Excellence for Technical Textiles. With the change in the
trend in textile sector and textile being a knowledge based research oriented industry
the Centre of Excellence for Technical Textiles will be setup in the State in co-
operative arrangement with Government of Karnataka as the lead partner duly
supported by institutes having requisite capacity and any leading academic technical
institution of the State. The Centre of Excellence for Technical Textiles will be funded
by the State Government upto a grant of INR 10 crore during the policy period.
a) Eligibility: Any Leading Technical Academic Institution or any other

Institution/Research Association in co-operative arrangement with
Government of Karnataka as the lead partner would be eligible to set up a Centre
of Excellence for Textiles.
b) Various activities which will be undertaken by the Centre of Excellence are:
4 The centre will assist the manufacturers in development of standard

technical textile products and enhance the knowledge base in composites
through R&D and training. R&D projects will be undertaken in the field for
development of technical textile fibres (natural & synthetic fibres),
development of woven and nonwoven products, technologically updated
manufacturing process, design and testing facilities etc.
36
4 Centre of Excellence would play an instrumental role in design development
and forecasting fashion trends in textile sector. It would provide assistance in
organizing workshops and training programs and would also provide strong
mentoring support from industry experts on achieving technical expertise
for new investors.
4 Quality Certification will also be established for the manufacturing process

and the finished goods, as per the international standards which would
encourage exports.
4 Facilities for testing and evaluation of products of identified segments of

technical textiles with national/international accreditation and
collaboration with foreign institutes/laboratories.
4 Government of Karnataka aims to create an integrated entrepreneurial

ecosystem and incubation spaces to support and nurture startups that are
involved in the domain of technical textiles. Focus Incubation centres will be
established in order to catalyse new product development, channelize
production and marketing activities of technical textile products. New
investors may utilize the incubation centre for product development and
preparing prototype for commercial production.
4 Incubation centre will provide a diversified basket of business solutions to

the small start-ups, which have good business ideas, but no background to
exploit the proposition commercially. It would provide venture space with
office facilities, shared resources and business network support, to work on
their ideas before getting into the mass production.
4 The Centre of Excellence will also establish an Information Centre to

facilitate dissemination of information through sample exhibits, awareness
programmes, e-library, video conferencing and publication of books and
papers and technical know-how to the manufacturers and users of textile
products.
16 Planned Budget Outlay for the Policy Implementation
The overall Budget requirement for implementation of the Policy is expected to be

about INR 2,282.86 crore spread over the next eight to nine years. During the policy
period (2019 – 2024), the Budget requirement would be around INR 1,582.17crore.
The year wise allocation for the planned budget outlay is as shown in
Annexure 2.
37
17 Review / Monitoring
The following committees would ensure the effective implementation of this policy:
a) A High Level Empowered Committee (HLEC): set up under the Chairmanship
of the Minister for Textiles, Govt. of Karnataka. Commissioner for Textile
Development and Director of Handlooms and Textiles is the Member
Secretary/Convener of the Committee. The Committee will comprise of
representatives of the related Departments of the Government of Karnataka,
R&D institutions and Industry Associations. HLEC is responsible for taking
necessary decisions to implement the Policy and for monitoring the projects
under the policy. The HLEC periodically reviews the policy implementation and
also carry out reallocation of funds across various interventions, depending on
the demand from the industry. It helps in ensuring complete utilization and
providing advisory inputs to the State Level Project Implementation Committee
(SLPIC) for effective implementation of the policy.
b) A State Level Project Implementation Committee (SLPIC): has been set up
under the Chairmanship of the ACS/Principal Secretary / Secretary to
Government, Commerce and Industries Department, Govt. of Karnataka.
Commissioner for Textile Development and Director of Handlooms and Textiles
is the Member Secretary/Convener of the Committee. The Committee
comprises of representatives of the related Departments of the Government
of Karnataka, R&D institutions and Industry Associations. SLPIC is responsible
for development of detailed operational procedures for implementation of the
policy, sanction and monitoring of the incentives for the projects under the
policy. All units which come under Large and Anchor enterprises, the approval
and sanctioning of the projects will be done by the SLPIC.
c) A Head Office Approval Committee (HOAC): will be set up under the
Chairmanship of the Commissioner for Textile Development and Director of
Handlooms and Textile. Project Director, Handlooms and Textile shall be the
Convener of the Committee. The committee shall comprise of representatives of
the related Departments of the government of Karnataka such a s B E S C O M ,
KSPCB, DIC, KUM etc. Banks, R&D Institutions and Industry Association. HOAC
shall examine the various investment proposals for mega projects, Green Field
textile parks, Brown Field textile parks, establishment of textile industries in
areas earmarked as Backward Areas. The proposals along with suitable
recommendations shall be placed before the State Level Project
Implementation Committee (SLPIC) for approval.
All units which come under Small and Medium enterprises, the approval and
sanctioning of projects will be done by the HOAC.
38
d) District Office Approval Committee (DOAC): will be setup under the
Chairmanship of Divisional Joint Director. The committee shall comprise of
representatives from District Industries Center, ESCOM, Lead District Manager,
and KSPCB Officer. The committee would have power of sanctioning and
approval for micro enterprise.
Detailed operating guidelines for each of the components of the policy will be
prepared and published separately.
18 Administration of the Policy
(a) The Department of Handlooms & Textiles shall implement the policy with
concentrated and synchronized efforts. The Department will be responsible for
administering the policy throughout the State in a structured format. The
current format of administration will be reviewed.
(b) The technical textiles is the sub sector gaining a fair amount of prominence in the
textile value chain. Therefore it is necessary for the Department of Handlooms &
Textiles to have the requisite capacity, in-house to respond to the needs of the
industry. The format will be able to respond to the needs of the industry and
bridge the knowledge gap between all the concerned stakeholders.
(c) To administer the policy, the Department of Handlooms and Textiles would co-
ordinate with various committees and stakeholders of the industry from time-
to-time for implementation of the policy.
(d) Expenditure for Project development and management under the policy will be
10% of the grant corpus earmarked for all activities carried out by the
Department of Handlooms and Textiles.
(e) The various activities to be carried out as a part of administering the policy in the
State shall include, but not be limited to the following:
w Dissemination of the Policy and its benefits to the industry
w Conducting workshops at various locations in the State
w Printing of brouchers / flyers
w Hosting of website and maintaining the same
w Conducting road shows by inviting industry players
39
w Visits of Officers of the Department of Handlooms and Textiles abroad for
accompanying industry stakeholders in various road shows and market
building initiatives
w Costs related to setting up of marketing intelligence unit within the

Department of Handlooms & Textiles, or for outsourcing such activities, in
order to create databases on marketing, labour information, etc. and
aggregating inputs from various districts
w Active liaisoning and visits to units of the industry and various other
stakeholders such as training institutes and other agencies.
w Setting up of IT infrastructure for monitoring progress of implementation
w Appointment of various consultants in case of carrying out specialized set of

activities as may be desired from time to time.
w The investors who have set up investments during the previous policy period
and have claimed incentives during the previous policy period would
continue to be supported under the previous policy. Investors who have set
up during the previous policy period, but have not claimed any incentives
under the previous policy, will be given a time frame of 6 months (from the
date of announcement of the new policy) to claim incentives under the new
policy.
(f) Separate Operational Guidelines for administration of these incentives and

concessions will be issued for the guidance of the concerned agencies / officers
with the approval of the State Level Project Implementation Committee (SLPIC).
(g) SLPIC shall be the authority to interpret the policy measures, incentives and
concessions detailed in this policy (including those in previous policies) and its
decision shall be final.
(h) Nuthana Javali Neethi 2013-18 will be applicable for the investments made
during 01.11.2018 till the announcement of New Policy. From the date of issue of
Government Order, the New Textile & Garment Policy 2019-24 shall be valid for a
period of 5 years or till a new Policy is announced.
40
Annexure 1: Snapshot of Investments under NuthanaJavali Neethi (2013-2018)
1. One of the major achievements for Karnataka has been the launch of India’s first State
Textile Policy. The Government announced its Textile Policy in the year 2008, as
“Suvarna Vastra Neethi 2008-2013” for a period of five years and thereafter
announced its Textile Policy in the year 2013, as “Nuthana Javali Neethi 2013-18”
also for a period of five years.
2. The thrust of “Suvarna Vastra Neethi 2008-2013” policy was towards the holistic
development of the sector. The focus areas for intervention were strengthening of the
textile value chain activities, geographical dispersion of textile and garment units,
human resource development, infrastructure development, capacity building in
terms of market development, design development and product diversification,
technology up-gradation of entire textile value chain and standard & compliance.
During the Textile Policy period from 2008-2013, Karnataka received an investment
worth INR 5710 crores in the sector which is 57.1 per cent of the target investments
of INR 10,000 crore envisaged. Projects worth INR 3326 crores (approximately) are
either under implementation or operational. These investments have not only been
made in ready-made garments sector but also into other value chains of textiles such
as spinning, processing and weaving sector. During the policy period 2,67,053 lakh
employment was generated in the State which is only 53.41 per cent of the target
employment of 5,00,000 envisaged.
3. Under Suvarna Vastra Neethi (2008-2013) policy period, sectoral investments in
sectors such as (Handlooms, Powerloom, Spinning, Processing, Garments and
Technical Textiles) were received where handlooms, powerloom, spinning,
processing, garments and technical textile sector received an investment worth INR 1
crore, INR 72 crore, INR 1764 crore, INR 185 crore, INR 2682 crore and INR 1006
crore respectively during the policy period. The garment sector received the
highest investment worth INR 2682 crore and generated almost 94 per cent
(2,51,326) of the total employment (2,67,053) generated in the policy period.
4. The Nuthana Javali Neethi (NJN) 2013-18 was planned to carry forward the initiatives
undertaken under Suvarna Vastra Neethi (SVN) 2008-13 policy. With a policy target
to achieve INR 10,000 crores of investment and generate 5 lakh employment during
the policy period, Nuthana Javali Neethi aimed at achieving a higher and sustainable
growth in the entire textile value chain from fibre to finished products, for all regions
of Karnataka.
5. The broad vision of the NJN Policy was to establish the textile and garment industry of
Karnataka, as a producer of high quality textile products and position Karnataka as a
global leader in the international market. The policy focussed on areas such as:
strengthening of the textile value chain activities, skill development and upgradation,
capital infusion and technology transfer for all segments of the value chain and also
develop newer areas, such as technical textiles.
41
6. During the Textile Policy period from 2013-2018, Karnataka received an investment
worth INR 9595.74 crores in the sector which is 95.9 per cent of the target
investments of INR 10,000 crore envisaged. These investments have not only been
made in ready-made garments sector but also into other value chains of textiles such
as spinning, processing and weaving sector. During the policy period 1,92,102
employment was generated in the State which is only 38.42 per cent of the
target employment of 5,00,000 envisaged.
7. Under Nuthana Javali Neethi (2013-2018) policy period, numerous small, medium
and mega enterprises have been extended with fiscal support all across Karnataka
except Bangalore. MSME projects under Nuthana Javali Neethi (2013-18) registered
a total investment of INR 4,957.74 crore (51.66 per cent of total investment). Out of
which Bangalore attracted an investment of about INR 3,702.52 crores, where no
incentives have been provided to the industries. The Large / Mega projects registered
a total investment of INR 4,638 crore (48.34 per cent of total investment) during the
policy period.
8. The sectoral investments across various segments are as below.
Investment
S No Segment
(INR crores)
1 Handlooms 1.72
2 Powerlooms 146.18
3 Spinning 1,454.70
4 Processing 14.36
5 Garments 1,038.09
6 Technical Textiles 903.17
7 Integrated Units 2,035.00
8 Greenfield Textile Parks and its units 300.00
9 Units established in Bangalore 3,702.52
Total 9,595.74
9. State Government provided special support to the mega projects which got approved
under the Policy period. Investors in turn have shown confidence in the State and
implemented mega projects in various districts across the State such as
Doddaballapura (Bangalore Rural), Bellary, Shimoga, Mandya, Bijapur and Hassan.
42
10. Government of Karnataka in addition supported the projects which got approved
under the Scheme for Integrated Textile Park Scheme (SITP) of the Ministry of
Textiles (MoT), Government of India. Those were Doddaballapura Integrated Textile
Park, at Bangalore, which was inaugurated in July 2010 and Gulbarga Textile Park
Private Limited which got approved in the year 2012.
11. Karnataka is home to a number of Textile Parks and SEZ units. The first integrated
textile park has been established in Doddaballapura, which is 48 acre park with 85
units focusing on weaving, sizing and warping, and is expected to generate
employment of 7,000 people. KIADB has set up textile SEZ in Hassan spread across
474.40 acres which provides substantial competitive advantages and is strategically
located to serve as an international business hub for South-East Asia, Africa, Middle
East Asia and SAARC nations. Also, development of Textile Park in Gulbarga is
under progress and two Greenfield parks have been developed during the policy
period at Hiriyur, Chitradurga and Belgaum.
12. The Textile Policy had special provision for Human Resources Development & Skill
Up-gradation which is the most essential for an internationally competitive textile
and garment industry. Under Nuthana Javali Neethi (2013-2018) policy period, the
total number of people trained were 82,262 beneficiaries.
13. A dedicated team of the Government officials are continuously working to provide all
the necessary support to the industries under the Textile Policy.
14. The planned budgetary outlay for Nuthana Javali Neethi 2013-18 policy was INR
1000 crores across the various interventions. Till now, INR 1022.88 crore has been
sanctioned by the Government out of which INR 416.66 crore was released.
15. The global textile and apparel industry has seen a structural shift in terms of
manufacturing locations to countries such as Ethiopia, Vietnam, Bangladesh due to
their manufacturing cost competitiveness (higher cost of wages, power and logistic
cost). Also, looking at the policy environment in other peer states such as the
lucrative incentives and concessions offered by Maharashtra, Andhra Pradesh,
Telangana, Jharkhand, etc. Nuthana Javali Neethi, 2013-2018 has been successful in
attracting investment. However, the employment generation hasn’t met the
expected target during the policy period. The lucrative incentives offered by the peer
states have been initiated in the recent past due to which they might get an added
advantage, hence the incentives or concessions mentioned in this policy are
necessary for attracting the investments into the State in future.
43
Annexure 2: Budget for New Textile and Garment Policy 2019-24
The overall Budget requirement for implementation of the Policy is expected to be about
INR 2,282.86 crore spread over the next eight to nine years. During the policy period
(2019 – 24), the Budget requirement would be around INR 1582.17 crore. The year on
year budget requirement (Component wise) is mentioned in the table below.
Table: Overall Budget Requirement for the New Textile & Garment Policy 2019-24
Total Budget
Incentives (INR Crores)
Capital Subsidy 412.67
Interest Subsidy 267.49
Power Subsidy 456.46
Stamp Duty Exemption 11.68
Skill Development Support 38.77
ESI & EPF Subsidy (only for MSMEs) 57.88
Sub Total (a) 1,244.94
Garments
Capital Subsidy 142.71
Interest Subsidy 92.51
Power Subsidy 98.56
Wage Subsidy 466.33
Stamp Duty Exemption 4.04
Skill Development Support 112.10
ESI & EPF Subsidy (only for MSMEs) 20.01
Sub Total (b) 936.26
Other Incentives
Textile Parks & Infrastructure 39.28
Common Infrastructure for Greenfield 25.93
Brownfield Cluster Development 20.74
CETPs 15.71
Sub Total (c) 101.66
Total (a+b+c) 2,282.86
44
Table: Component-wise Budgetary requirement over the next five year
Financial Outlay for incentives under New Textiles

Incentives Year 1 Year 2 Year 3 Year 4 Year 5 Total
Textiles
Capital Subsidy 13.76 41.27 75.66 103.17 96.29 330.13
Interest Subsidy 8.92 26.75 49.04 66.87 62.42 214.00
Power Subsidy 4.36 17.46 28.37 48.01 76.38 174.58
Skill Development Support 0.76 3.03 6.81 12.10 16.07 38.77
Stamp Duty Exemption 1.17 2.34 2.92 3.50 1.75 11.68
ESI & EPF Subsidy (only for 5.79 11.58 14.47 17.36 8.68 57.88
MSMEs)
Sub Total (a) 34.75 102.41 177.26 251.02 261.59 827.03
Incentives Year 1 Year 2 Year 3 Year 4 Year 5 Total

Garments
Capital Subsidy 4.76 14.27 26.16 35.68 33.30 114.17
Interest Subsidy 3.08 9.25 16.96 23.13 21.58 74.00
Power Subsidy 0.20 0.80 19.56 38.72 30.89 90.16
Wage Subsidy 4.66 18.65 41.97 74.61 99.10 238.99
Skill Development Support 2.19 8.75 19.69 35.00 46.48 112.10
Stamp Duty Exemption 0.40 0.81 1.01 1.21 0.61 4.04
ESI & EPF Subsidy (only for
MSMEs) 2.00 4.00 5.00 6.00 3.00 20.01
Sub Total (b) 17.30 56.53 130.35 214.35 234.95 653.48
Infrastructure Development
Textile Parks & Infrastructure 3.93 7.86 9.82 11.78 5.89 39.28
Common Infrastructure for
Greenfield Development 2.59 5.19 6.48 7.78 3.89 25.93
Brownfield Cluster
Development 2.07 4.15 5.19 6.22 3.11 20.74
CETPs 1.57 3.14 3.93 4.71 2.36 15.71
Sub Total (c) 10.17 20.33 25.42 30.50 15.25 101.66
Grand Total (a + b+ c) 62.21 179.28 333.03 495.86 511.80 1,582.17
Sd/-
(M. MAHESHWAR RAO)
Secretary to Government,
Commerce & Industries Department.
45
For more Information contactable Officers Address and Telephone Numbers
Si.No Address Telephone No E-mail
1 Principal Secretary to Government,(MSME & Mines)
Department of Commerce & Industries, 91 80-22034235 secymines-ci@karnataka.gov.in
Vikasasoudha, Bangalore-01
2 Commissioner for Textile Development and Director
of Handlooms & Textiles,
No. 86, Shubhodya Complex, Railway parallel Road, 91 80-23561628 texcomgok@gmail.com
Kumara Park west, Bangalore-560 020 91 80-23565690 web: www.karnatakadht.org
3 Additional Director, Head Ofce, Bangalore 080-23563903 addlndir@gmail.com
4 Joint Director, Head Ofce , Bangalore 080-23568228 pdsvntex@gmail.com
5 Gazetted Assistant to Textile Commissioner,
Head Ofce, Bangalore 080-23564828 gatotcgok@gmail.com
6 Joint Registers of Co operative Societies (Textile),
Head Ofce, Bangalore 080-23568226 jrcstexgok@gmail.com
7 Deputy Director (Investment), Head Ofce,
Bangalore 080-23564827 ddinvnjn@gmail.com
8 Deputy Director (Training), Head Ofce,
Bangalore 080-23568227 ddtrgnjn@gmail.com
9 Deputy Director (Handloom), Head Ofce,
Bangalore 080-23568223 deputydirectorhandllomsgok@gmail.com
10 Deputy Director (Textile), Head Ofce,
Bangalore 080-23568225 ddpowerlooms@gmail.com
11 Managing Director,
Karnataka Handloom Development Corporation ltd.,
Priyadarshini Nekar Bhavana, Head Quarters,
Vidyanagar, Opp to K.H. Patil College, Hubli-580031 0836-2277505 mdkhdc@gmail.com
Karnataka State Textile Infrastructure development
Corporation Ltd,
VTPC Building, 1st Floor, Permanent Exhibition Centre
Kanabargi Indusrtial Area, Autonagar, Belagavi-590015 08312950220 kstidcl.bgl@gmail.com
Karnataka State Cooperative Handloom Weavers
Federation, (Cavery Handlooms),
No. 49, "Nekara Bahvana", Model House Street,
Bahsavanagudi, Bangalore-560 004 080-26602633 cauveryhandlooms@gmail.com
14 Principal, Karnataka Handloom Technology Institute
Near Veereshwar Matha Narasapura, Bettagiri,
Gadag - 508 102 08372-297221 principalkhtigadag@gmail.com
15 Managing Director, Karnataka Udyoga Mithra,
3rd Floor, Kanija Bhavana (East Flank) 91-80-22282392 md@kumbangalore.com
No.49, Race Course Road, Bangalore-1 91-80-22285659 http://kum.karnataka.gov.in/
16 Deputy Director, Weavers Service Centre
No. 2 & 4, 2nd Main Road, Okalipura,
(Next to R.R.R. Kalyana Mantapa) Bangalore-560021 080-23121662 wscbangalore@yahoo.in
17 The Principal, Handloom Weavers Advance
Training Institute, Behind RTO Ofce, Galagali RC,
Mudhol Road, Jamkhandi Baglakot DIst. 9481621615 khwatijkd@gmail.com
46
For more Information contactable Zonal / Divisional Officers Address and Telephone Numbers
Si.No District Address Telephone No E-mail
1 Bangalore Joint Director’s Office

Handloom & Textiles Department
South Division / Zone
No. 39/2, 4th Floor, AVSVN Bhavana,
Kempegowda Road,
Bangalore 560 009 080-22382666 jdsouthdvn@gmail.com
2 Tumkur Joint Director’s Office

East Division / Zone
Vigneshwara Nilaya,
9th Cross Raod, Ashoknagar,
Tumkur - 572 103 0816- 2270653 jdhteastzone@gmail.com
3 Belgavi Joint Director’s Office

West Division / Zone
Room No. 04, Suvarna Soudha
Belgavi - 590 020 0831-2407225 jdhtdwestbgm@gmail.com
4 Bellari Joint Director’s Office

North Division / Zone
No. 202, Ward No. 34, SP Circle,
Devinagar,1st Cross, Club Road,
Bellari -583 104 08392-267844 jdhtbly@gmail.com
Address of District Ofces
South Division / Zone
1 Bangalore Deputy Director

Urban Handloom & Textiles Department
Zilla Panchayat
Bangalore urban, S.J.P Enclosure
I.T Block, K.R. Circle
Bangalore-560 001 080-22341176 ddbloreurban@gmail.com
2 Bangalore Deputy Director

Rural Handloom & Textiles Department
Zilla Panchayat,
KSTIDC Building, 1st Floor,
KIADB Apparel Park,
Doddaballapura - 561203 080-29501945 ddtexbr@yahoo.com
Bengaluru Rural Dist.
47
3 Kolar Deputy Director

No. S-9, S-9A, 2nd Floor,
District Administration Bhavan,
NH-75, Mulbagalu Road,
Kumbalahalli Village,
Kolar Taluk-563 103 08152-243519 ddkolar@gmail.com
4 Chikkaballapur Deputy Director

Room No. SA-14,
2nd Floor, Disrict Administration
Centre, Chikkaballapura-562 101 08156-277031 htd.cbp@gmail.com
5 Ramnagar Assistant Director

District Panchayat Ofce
1st Floor, B.M. Road
Ramnagar - 562 159. 080-27272288 adhlstexrmg@gmail.com
6 Mandya Deputy Director

Zilla Panchayat
Old S.P Office Building
Mandya - 571 401. 08232-222366 adhlstexmdy@yahoo.co.in
7 Mysore Deputy Director

Handloom & Textiles Department 0821-2441353,
C.T.I. Building, Sayyaji Rao Road 0821-2422322 ddmysore@gmail.com
Zilla Panchayat, Mysore - 570 001 Fax: 0821-2441353 ddhandloomsmysore@yahoo.com
8 Chamarajnagar Deputy Director

Room no 222, 2nd Floor,
Disrict Administration Centre Telephone / Fax:
Chamarajnagar-571 313. 08226-222883 ddtextilescnagar@gmail.com
9 Kodagu Assistant Director

Disrict Industrial Centre Building
Kohinoor Road, Madikeri-571 201 08272-220365 adhlstexkodagu@gmail.com
48
East Division / Zone
10 Tumkur Deputy Director

Naga Nilaya , 5th Main Road
Siddaganga Extension
Tumkur-572 102 0816-2275370 jdhttumkur@gmail.com
11 Chitradurga Deputy Director

Bhagya Complex, B.D. Road
Jilla panchayat
Chitradurga-577 502 08194-221426 ddhtchitradurga@rediffmail.com
12 Davangere Deputy Director

Zilla Panchayat
Ramanjenya Plaza, College Road,
Nittuvalli, Dhavangere-577004. 08192-262362 texdeptdvg@gmail.com
13 Shivamogga Deputy Director

Zilla panchayat
Manjunatha Tower, 2nd Floor,
Gandhinagar Main Road
Shivamogga -577 201. 08182-223405 ms.handloomtextile@rediffmail.com
14 Hassan Assistant Director

Zilla Panchayat,
Diary Circle, Hassan-573 201 08172-240627 addhthassan@gmail.com
15 Chikkamagalur Assistant Director

Zilla Panchayat,
K.M. Road, Chikkamagalur - 577 102 08262-220021 hlandtexckm@gmail.com
16 Dhakshina Assistant Director

Kannada Handloom & Textiles Department
(Mangalore) KSSIDC Building
Industrial Area, Yeyyodi
Mangalore-575 008 0824-2225056 adtextmnr@rediffmail.com
17 Udupi Assistant Director

Zilla Panchayat Udupi
A Block, 1st Floor
Rajathadri, manipal
Udupi-576 104 0820-2574963 adhtudupi@gmail.com
49
West Division / Zone
18 Belagavi Deputy Director

Zilla Panchayat, “Samarthya Soudha”
Building, Hari Mandir Road,
Beside Marathi School, Angol,
Belagavi - 590 006 0831-2950674 dhtbelgaum@gmail.com
19 Bagalkot Deputy Director

Room No. 140/141
Disrict Administration Centre
Navanagar, Zilla Panchayat
Bagalkot - 587 103. 08354-235463 ddhtbgk@gmail.com
20 Vijayapura Assistant Director

Zilla Panchayat
D.I.C Compound, Shikarakhane
Station Back road
Vijayapura-586 104 08352-251268 ddhtbjp@gmail.com
21 Dharwad Deputy Director

Zilla Panchayat Building
D.C. Office Premises
Dharwad -580 001 (0836)-2448834 ddtexdwd@yahoo.in
22 Gadag Deputy Director

Zilla Panchayat
K.H.T.I Building
Near Vireshwara Mutt,
Narasapura, Betageri
Gadag-582 102 08372-218649 ddgadag@gmail.com
23 Haveri Deputy Director

Zilla Panchayat,
Room No. 43, 1st Floor, C-Block,
Disrict Administration Centre,
D.C Office, Devagiri Dist
Haveri-581 110 08375-249050 adht_haveri@rediffmail.com
24 Uttar Kannada Assistant Director

(Karwar) Handloom & Textiles Department
MG Road Telephone/ Fax
Karawar - 581 301 08382-220930 htadkarwar@gmail.com
50
North Division / Zone
25 Bellari Deputy Director

Zilla Panchayat,
No. 43, Venkatadri Nilaya,
Near Postal Superident office,
Fort Main Road, Bellari-583 102 08392-266075 ddhtbellari@gmail.com
26 Bidar Assistant Director

Zilla Panchayat,
Sericulture Office Building,
2nd Floor, Kolar (k),
Bidar-585 402. 08482-233129 asstdirectorhtbidar@yahoo.com
27 Kalburgi Deputy Director

Zilla panchayat, “Gurubasava Building”,
Home No. 2-910,
Okali Camp, Near Soubhagya Kalyana
Mantap, Sedam Road,
Kalburgi - 585 102 08472-278629 ddht.gulbarga@gmail.com
28 Yadgiri Assistant Director

No. C6, C Block, 2nd Floor,
District Office Complex,
Chittapura Road
Yadgiri-585 202. 08473-253387 adhtydg@yahoo.in
29 Raichur Assistant Director

Zilla panchayat
Arab Mohalla, Near Urdu School,
Raichur-584 101 08532233429 bvradrch@gmail.com
30 Koppala Deputy Director

D.I.C Building, opp Municipality
Ashoka Circle
Koppala-583 231 08539-295469 adhntkpl@gmail.com
51
New Textile and
Garment Policy 2019-24
(with amendments)
Secretary to Government
Commerce and Industries Department
(Mines, MSME & Textile)
Room No. 135, 1st Floor, Vikasa Soudha, Bengaluru – 560 001
Tel: +91 80-22034235
Email: secymines-ci@karnataka.gov.in
Commissioner for Textile Development and

Director of Handlooms and Textiles
No. 86, “Shubhodaya Complex” Railway Parallel Road
Kumara Park west, Bangalore – 560 020
Tel: +91 80-23561628
Email: texcomgok@gmail.com
Website: www.karnatakadht.org

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New Textile &

Department of Handlooms & Textiles

Sub: New Textile and Garment Policy 2019-24 - reg.

GOVERNMENT ORDER NO. CI 115 JAKAIEE 2017,

a. To accelerate growth and increase manufacturing cost competitiveness in the entire

f. To position Karnataka as a significant manufacturing hub and a net exporter of Technical

Sub:Modification to the New Textile and Garment Policy 2019-24 reg.

Read: 1) Government Order No. CI 115 JAKAIEE 2017, dated: 04.11.2019.

Sl. As notiﬁed in G.O. No.

Deputy Secretary to Government

GOVERNMENT ORDER NO: CI 15 JAKY 2022, BENGALURU

Interest subsidy for Large Industries

Interest subsidy for Medium & Large Industries

1.3 Current Guidelines:

Interest Subsidy for Large Enterprises

Interest Subsidy for Medium & Large Enterprises

2. Increase of Wage Subsidy only for Garmenting Sector:

8.1 Credit Linked Capital Subsidy 20

8.2 Interest Subsidy 21

8.3 Power Subsidy 21

8.4 ESI & EPF Subsidy 22

8.5 Stamp Duty Exemption and Concessional Registration Charges 23

8.6 Effluent Treatment Plant for existing and new units 23

9 Policy Incentives Offered for Garments 24

9.1 Credit Linked Capital Subsidy 24

9.2 Interest Subsidy 24

9.3 Power Subsidy 25

9.4 Wage Subsidy 25

9.5 Stamp Duty Exemption and Concessional Registration Charges 25

9.6 ESI & EPF Subsidy 26

10 Special Package for Mega Units 26

12.1 Common Infrastructure for Greenfield Textile Parks 28

12.2 Brownfield Cluster Development 30

13 Human Resources Development & Skill Up-gradation 31

15 Centre of Excellence for Textiles/Technical Textiles 36

16 Planned Budget Outlay for the Policy Implementation 37

18 Administration of the Policy 39

Annexure 1: Snapshot of Investments under Nuthana Javali Neethi (2013-2018) 41

Annexure 2: Budget for New Textile and Garment Policy 2019-2024 44

Contactable Directors Address and Telephone Numbers 46

(including dyed and printed) attracted Contribution to industrial

consistently provided an environment that Contribution to Garment 20%

been one of the leading contributors in the Contribution to Cotton 6%

Karnataka has large manufacturing capacities across the complete manufacturing

1.3 Changing Inter-State and International Landscape

Therefore, with an aim to position Karnataka as a competitive textile and apparel

Enterprise: An enterprise classified as micro, small, medium (MSME), large, mega

Employment : Minimum of 200 for Employment : Minimum of 2000 for the

Mega Projects with an investment in fixed Projects with an investment in fixed

Employment: minimum of 350 for Employment: minimum of 3000 for

g) Modernization/Technology Upgradation: Existing units in the Textiles and Garment

I) Garmenting: Units manufacturing garments and apparels would be classified as

Zone 2 & Zone 3

Kalyana Karnataka Region

= Agrotech (Agriculture, Horticulture and Forestry)

= Buildtech (Building and Construction)

= Clothtech (Technical components of shoes and clothing)