UP Textile and Garmenting Policy-2022 has been implemented to make UP a global textile hub. This policy will help in attracting investment in the textile sector of the state, promoting employment, encouraging youth to do business in the textile and garment sector, giving priority to the children of weavers in self-employment. Uttar Pradesh's Handloom and Textile Industries, Micro, Small and Medium Enterprises, Khadi and Village Industries, Silk Minister Rakesh Sachan gave this information in a press conference organized at Lok Bhavan on Monday.

Minister Rakesh Sachan said that through the UP Textile and Garmenting Policy-2022, the target is to create 5 lakh new jobs by attracting private investment of 10 thousand crores in the textile and apparel sector. Uttar Pradesh is the largest domestic market in the country with 24 crore consumers. The area is home to trained workers/excellent weavers. There is adequate availability of water, trained manpower and electricity for the development of textile and apparel industry in the state.

The investment process has been made online. A grant of 25 percent of the land cost will be given on land purchase for textile and garmenting units in industrial areas developed by government institutions, industrial authorities/government departments. 100 percent exemption in stamp duty on purchase of land from the state or central government or their undertakings, 75 percent exemption will be given in Gautam Buddha Nagar.

Textile and garmenting units will be given 25 percent capital subsidy on the purchase of plant and machinery. 10 percent additional capital subsidy will be given to textile and garmenting units to be set up in Purvanchal and Bundelkhand. Textile and garmenting units will be given 50 percent subsidy of the project cost for their own use for infrastructure facilities like roads, water supply and drainage, electricity supply up to a maximum of Rs.03 crore.

For setting up of Effluent Treatment Plant (ETP) and DG sets, 50 percent of the project cost, up to a maximum of Rs.05 crore, will be given. 25 percent of the project cost for in-house training facility to the extent of per unit, up to a maximum of Rs 2.5 crore, for staff quarters, worker hostels/dormitories, 25 percent of the project cost, subject to a maximum of Rs 5 crore. He said that 60 percent of the annual interest paid against loans taken from commercial banks/financial institutions for plant and machinery would be given as interest subvention reimbursement for a maximum period of 07 years.

New units will be given 100% exemption in electricity duty for 10 years. Mega and super mega garmenting units will be given employment generation grant of Rs 3200 per worker per month for 5 years. To promote exports, freight concession will be given for 5 years for moving new garmenting units from factory to port. In the first 02 years 75 percent, for the next two years 50 percent, in the last year 25 percent rent will be given.

In order to develop a textile park on at least 25 acres of land in the private sector, 50 percent of the project cost (excluding land cost) will be given to entrepreneurs up to a maximum of 50 crores. To encourage silk industry, 15 percent capital subsidy will be given to silk reeling unit costing up to 01 crore and 20 percent capital subsidy will be given to silk reeling unit with investment of 01 crore or more.