Textiles
Over last few decades, Rajasthan has emerged as a promising textile hub. Abundance of raw material and trained labour has promoted growth of the textile industry in the state.
Rajasthan enjoys leading position in production of polyester viscose yarn and synthetic suiting material as well as in processing of low-cost, low-weight fabric. The State is the largest producer of PV suitings in the country.
Bhilwara has emerged as India's largest manufacturer of suiting fabrics and yarn and Barmer has been added in the list of Towns of Export Excellence. With a network of backward and forward linkages, Rajasthan's textile industry offers significant competitive advantage. 16 ATDC Smart Centers have been set up in Rajasthan for providing trained manpower.
Eight integrated textile parks have been sanctioned in Rajasthan with GoI assistance of INR 40 crore each and are in various stages of progress. Also, the State has announced a Special Incentive Package for Power Loom Sector in the districts of Jodhpur, Pali and Barmer. A special Power Loom Industrial Area is to be set up by RIICO in the Pali district.
Power Loom sector:
- Minimum Investment Rs. 25 lacs and
- Minimum Employment 10 persons
- In specified areas i.e. Jodhpur, Pali and Barmer
- 30% additional benefits of VAT reimbursement on purchase of yarn for 7 years in addition to the reimbursement of VAT provided to manufacturing enterprise.
Textile & Technical Textile Sector
- 5% Interest Subsidy
- Additional 1% Interest Subsidy on investment of more than Rs 25 crores.
- 7% Interest Subsidy for Technical Textile Sector
- 50% Exemption from payment of Entry Tax on capital goods for setting up of Plant
- Capital Subsidy on ZLD based ETP@ 20% of the EFCI or Rs. 1 crore whichever is lower
- 50% reimbursement of VAT on purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles for use in manufacture of goods within the State
Other exemptions
- Exemption from payment of 50% of Electricity Duty for seven years
- Exemption from payment of 50% of Land Tax for seven years
- Exemption from payment of 50% of Mandi Fee for seven years
- Exemption from payment of 50% of Stamp Duty on purchase or lease of land and construction or improvement on such land; and
- Exemption from payment of 50% of conversion charges payable for change of land use
Textile Parks:
- Reimbursement of 50% of amount of VAT paid on purchase of plant and machinery or equipment for 7 years
- 50% exemption in Electricity Duty for 7 years
- 50% exemption in Entertainment Tax, Land Tax and Luxury Tax for 7 years
- 50% exemption in Conversion Charges for change of land use
- 50 % exemption in Stamp Duty for purchase or lease of land
- Additional 10% reimbursement of VAT/CST paid, for Women/PwD/SC/ST