Investor Guide - Technotex 2013 PDF

TECHNOTEX
Ministry of Textiles
INVESTOR GUIDE 2013
Government of India
Driving Growth of Technical Textiles

in India
January 2013
Knowledge Partners
INDUSTRY SPEAK
On the demand side, with 1.2 billion population, expanding middle class and
urban population, higher disposable incomes, integration with global markets
and infrastructure growth are triggers for growth of the sector. While on the
supply side, low manufacturing costs, indigenous availability of raw materials
at competitive rates, availability of technology, expansion of modern trade,
Public Private partnership in infrastructure, Government support to the
sector (TUF, Technology Mission etc), are major enablers.
Hence, there are enough reasons for the investors to diversify into technical
textile sector.
Shishir Jaipuria, Managing Director, Ginni Filaments Ltd.
In the three decades of my professional experience as Civil Engineer, I have

not come across with any material other than geosynthetics, which in a
variety of forms has emerged as a wonderful product to enhance the
performance of traditional materials and structures remarkably.
Sudhir Mathur, Chief Scientist, CRRI, New Delhi
Infrastructure is India's biggest requirement. Geosynthetics is an integral

part of infrastructure development across the globe; India cannot be any
different. Over next 10-15 years, Indian demand for geosynthetics is bound
to take a high growth trajectory. At Skaps, we fully appreciate this fact and
hence India features strongly in our business growth plans
Perry Vyas, President, SKAPS Industries
Product innovation or improvement is the mother's milk for long term

industrial success. But to catch up to the others quickly we should endeavor
to leapfrog existing paradigms via joint ventures. In the US the most
successful innovators both in terms of quality and quantity are not the big
US MNC but the US SMEs. Building linkages with SMEs will have the
biggest pay back not only from an industrial and product perspective but
deep involvement of US SMEs in India will create long term stable FDI and
significant geo political advantages for both countries. The proper role for
Government is active promotion of technology driven Joint Ventures with the
SMEs sector
Sarojit Malik, Managing Director, Access International Capital, LLC
INDUSTRY SPEAK
The current investment in the country with respect to technical textiles is

one which is being regarded with cautious optimism. Investors have money
to invest, but they do not want to get into the marketing of the products
made and hence there is this resistance in thoughts. The more proactive
ones have already got themselves into the business accepting this fact, but
for the market to grow in general, there has to be a paradigm shift in
thoughts from selling traditional textiles to selling technical textiles.
Vikas Sharan, Vice President, A.T.E. Enterprises Private Limited
The manpower available in India is not too skilled in their technical and
managerial skills. But, India having a large labor population, is cheaper so the
companies are attracted. Thus, people are needed to be trained and
educated.
Ahemedabad Textile Industry Research Association (ATIRA)
Developed countries have already reached a level of near saturation in

technical textiles. With declining growth rate and intense internal and global
competition, the producers of technical textiles in the developed countries
are looking upon India as an opportunity. Indian entrepreneurs who value
technology to develop technical textiles can capitalize these opportunities for
business and the scope for value addition
Siddharth Y. Kusumgar, Managing Director, Kusumgar Corporates Pvt. Ltd

Table of Contents
Glossary 1
1. Technical Textiles 3
1.1 Sector overview 4
1.2 Technical Textile consumption 14
1.3 Growth enablers 16

1.4 Trade trends 18
1.5 Major Investments in the Last Few Years 19
2. Resource availability in India 22

2.1 Infrastructure availability 23
2.2 Centres of Excellence (COEs) 24

2.3 Textiles parks 31
2.4 Skill set availability 34
2.5 Raw material availability 37
3. Standards for Technical Textiles industry 40
4. Policy framework 45
4.1 Government policies /schemes for 46
promotion of Technical Textiles
4.2 State specific policies for promoting Technical Textiles 53
A. Gujarat 57
B. Tamil Nadu 70
C. Maharashtra 80
D. Karnataka 89
E. Andhra Pradesh 104
F. Rajasthan 108
Table of Contents
G. Punjab 114
H. Madhya Pradesh 117

5. Foreign Investment framework 123
5.1. Foreign Direct Investment Policy in Textiles 125
5.2. Foreign Investment Promotion Board (FIPB) 126

5.3. Regional and international trade agreements 126
6. Entry options in India 128
6.1 Liaison office (LO) 129
6.2 Branch office (BO) 130
6.3 Project office (PO) 130

6.4 Local Indian subsidiary companies 131
6.5 Limited liability partnership (LLP) 131

7. Investment opportunities in Technical Textiles industry 133
7.1 Specific products / segment for 134
investment opportunity
7.2 Industry's perception 136
7.3 COE's perception 139

7.4 Research and Development 144
7.5 North East Regional projects in Geotech and Agrotech 144
7.6 Skill development 144

7.7 Integrated Textile Parks and Technical Textiles parks 145
8. Key Stakeholder in Technical Textile industry in India 146
9. Where to apply for benefits under government scheme 158
10. Other Technical Textile publications 164
Annexure 166
Glossary
No. Abbreviation Full form
1. Agrotex Agricultural Textiles
2. ATIRA Ahmedabad Textile Industry's Research Association
3. BIS Bureau of Indian Standards
4. BTRA Bombay Textile Research Association
5. Buildtex Building Textiles
6. Clothtex Clothing Textiles
7. COE Center of Excellence
8. CRRI Central Road Research Institute
9. CST Central Sales Tax
10. DKTE DKTE Society's Textile & Engineering Institute
11. EPF Employee Provident Fund
12. ESI Employees State Insurance
13. FDI Foreign Direct Investment
14. FICCI Federation of Indian Chambers of Commerce and Industry
15. FYP Five Year Plan
16. Geotex Geotechnical Textiles
17. GoI Government of India
18. GR Government Resolution
19. GST Goods and Service Tax
20. HDI Human Development Index
21. Hometex Home furnishing Textiles
22. Indutex Industrial Textiles
23. ITI Industrial Training Institutes
24. ITTA Indian Technical Textile Association
25. LMI Large and Medium Industries
26. MMF Man-made fibres
27. MMFY Man-made filament yarns
28. Meditex Medical Textiles
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No. Abbreviation Full form
29. Mobiltex Automotive Textiles
30. MSE Micro and Small Enterprises
31. MSME Micro, Small and Medium Enterprises
32. NITRA Northern India Textile Research Association
33. Oekotex Ecological protection textiles
34. OTXC Office of Textile Commissioner
35. Packtex Packaging Textiles
36. PMMC Project Management and Monitoring Consultant
37. PPP Public Private Partnership
38. Protex Protective Textiles
39. PSG PSG College of Technology
40. RBI Reserve Bank of India
41. SASMIRA Synthetic & Art Silk Mills Research Association
42. SGDTT Scheme for Growth and Development of Technical Textiles
43. SIDCO Small Industries Development Corporation
44. SIPCOT State Industries Promotion Corporation of Tamil Nadu Ltd
45. SITP Scheme for Integrated Textile Parks
46. SITRA South India Textile Research Association
47. SME Small and Medium Enterprises
48. Sportex Sport Textiles
49. SPV Special Purpose Vehicle
50. SSI Small-scale Industries
51. TIDCO Tamil Nadu Industrial Development Corporation
52. TMTT Technology Mission on Technical Textiles
53. TUFS Technology Upgradation Fund Scheme
54. VAT Value-added Tax
55. WRA Wool Research Association
Conversion rate considered:

US $ 1 = INR 55
US $ 1 = EURO 0.76
2 Investor Guide
1
TECHNICAL TEXTILES
1 Technical Textiles
1.1 Sector overview

Technical Textiles are functional/welfare textiles used for their diverse and
multifunctional properties. Technical textiles offer several advantages in their
functional aspects for improving health and safety, cost effectiveness and
durability and strength of textile material. These performance-enhancement
products are applicable in the protective clothing, agriculture, medical,
infrastructure development, automotive, aerospace, sports, and packaging
sectors.
While the global market size of the technical textiles sector was estimated to
be US$ 104,000 million in 2010, this sector is still in nascent stages in India.
Based on past trends of growth and estimated end user segment growth,
the Working Group on Technical Textiles for 12th Five Year Plan (FYP)
projected the market size to reach US$ 28,727 million by 2016-17 at a year-
on-year growth rate of 20% during 12th FYP.
40.00
28.82
35.00
30.00
25.00 20%
1,58,540
20.00
14.36
15.00 11%
9.49
10.00 21%
12% 4.35
5.00 3.45
0.00
2001-02 2003-04 2007-08 2011-12 2016-17
(Estimated*)
Source; Working Growth Report on Technical Textiles for 12th Five year Plans
Figures in bar chart are in Rs. Crore 1USD=INR55
4 Investor Guide
Based on their functional requirements and end-use applications, the diverse
range of technical textiles can be grouped into 12 categories, as shown in
the figure below:
• Shade-nets • Architectural Membranes • Shoe lacesInterlinings • Geogrids

• Mulch-matsCrop-covers • Awnings & Canopies • Zip fasteners • Geonets
• Anti-hail nets and bird • Hoardings and Signages • Elastic narrow fabrics • Geocomposites
protection nets • Floor and Wall coverings (Tapes)
• Fishing nets • Scaffolding nets • Garments
• Cotton canvas tarpaulins • Umbrella cloth
AGROTEX BUILDTEX CLOTHTEX GEOTEX
• Fiberfil • Filtration Products • Diapers • Seat belt webbings

• Mattress and pillow • Conveyor belts • Sanitary napkins • Airbags
components • Drive belts • Contact lenses • Helmets
• Carpet backing cloth (Jute • Bolting cloth • Surgical products and • Seat Upholstery
& Synthetic) • Computer printer ribbon • artificial implants • Airline Disposables
• Stuff toys • Paper making fabrics • Surgical gowns • Nylon tyre cords
• Blinds
HOMETEX INDUTEX MEDITEX MOBILTEX
• Environmental Engineering • Polyolefin woven sacks • Bullet Proof Jackets • Sports composites and nets
• Environmental Protection • Fire Retardant apparels • Artificial turf
• FIBC • Fire retardant furnishing
• Recycling • Parachute Fabrics
• Leno bags fabrics
• Waste Disposal • Sport shoes components
• Wrapping fabrics • Chemical Protection • Tents
• Jute hessian and sacks clothing • Swimwear
• High visibility clothing
• Industrial gloves
OEKOTEX PACKTEX PROTEX SPORTEX
1. Agrotex (Agriculture, horticulture and fishing):

Agricultural textiles are used in farming, animal husbandry and
horticulture to control the hazardous influences of environmental and
climactic factors on crop production and cattle breeding, regulate
nutrient level intake of plants, and assist in process and post harvest
operations. Agrotextiles, in the form of nets, ropes and lines, have also
been used extensively in the fishing industry. Agrotextiles have been
demonstrated to be successful world over in not only protecting the
crops from any external factors, but also in improving agricultural yield.
Given the importance of agriculture to the Indian economy and
population, the need and potential application of agrotextiles in the
country is significant and vast.
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As per estimates by the Working Group on Textiles and Jute Industry,
Ministry of Textiles, Government of India, the Indian agrotex segment is
expected to grow at a rate of 20% to US $ 340 million by 2016-17. Key
Indian manufacturers in the segment include:
• Shade nets: Garware Wall Ropes, CTM Agrotextiles Ltd., Rishi

Techtex Ltd, Tuflex (Netlon India Ltd) and Neo Corp International Ltd.
• Mulch mats: Unimin, Fiberweb India, Shivam Polymers, Climax
Synthetics Pvt. Ltd., Creative polymers Pvt. Ltd. and Essen
Multipack Ltd.
• Anti-hail nets and bird protection nets: Tuflex, Kwality Nets and
Garware Wall Ropes
• Crop covers: Unimin India Ltd, Fiberweb India Ltd, KK Non-woven
and KT Exports;
• Fish nets: Garware Wall Ropes, Hinafil India Pvt Ltd., SRF Polymers
Limited.
2. Meditex (Medical and Hygiene Textiles)

Meditex products include textile material used in hygiene, health and
personal care, as well as in surgical applications. These products include:
wipes, baby and adult diapers, adult sanitary and incontinence products,
as well as, medical and surgical products, such as operating gowns,
operating drapes, sterilization packs, dressings, sutures and orthopaedic
pads. At the highest value end of this segment are relatively tiny
volumes of extremely sophisticated textiles for uses such as artificial
ligaments, veins and arteries, skin replacement, hollow fibres for dialysis
machines, etc. Meditex products are available in woven, knitted and non-
woven forms based on the area of application.
India's meditex segment is expected to grow at a rate of 20% to US$

1,039 Million by 2016-17, as per estimates of the Working Group on
Textiles and Jute Industry, Ministry of Textiles, Government of India. Key
• Baby diapers: Unimin India Ltd. and Fiberweb Pvt. Ltd.
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• Sanitary napkins: Procter and Gamble, Johnson and Johnson and
Kimberley Clark Lever
• Surgical disposables: Thea-Tex Healthcare Pvt. Ltd., Mediklin
Healthcare Ltd., Sivshree Medittex India Pvt Ltd
• Surgical sutures: Johnson and Johnson, Centennial Surgical Suture
Limited and Futura Surgicare Pvt. Ltd
3. Buildtex (Construction – Building and Roofing)

Textiles are employed in many ways in the construction of buildings,
both permanent and temporary, dams, bridges, tunnels and roads.
Temporary structures such as tents, marquees and awnings are some of
the most obvious and visible applications of textiles. Architectural
membrane has risen to prominence in the construction of semi-
permanent structures, such as sports stadia, exhibition centres and
other modern buildings. Other products include hoardings & signages,
cotton canvas tarpaulins, HDPE tarpaulins, awnings & canopies,
scaffolding nets, floor & wall coverings etc.
India's Buildtex segment is expected to grow at a rate of 17% to US$

541 Million by 2016-17, as per estimates of the Working Group on
• Architectural membrane: Entremonde Polycoaters Ltd.
• Canvas tarpaulin substrate: Gokak mills, Bharat Textiles, SRF Limited
• HDPE tarpaulin: Gujarat Raffia, Gujarat Craft
• Awnings and canopy: SRF and Entremonde Polycoaters
• Floor and wall coverings: Uniproducts, Birla Corporation
• Scaffolding nets: Rishi Techtex Ltd and Kwality Nets
4. Mobiltex (Automotive Textiles)
Automotive applications (cars, trucks, buses, trains, ships and

aerospace) represent the largest single end-use area for technical
textiles. Mobiltex products can be broadly classified into two categories:
visible components and concealed components. Visible components
7 Investor Guide
include seat upholstery, carpets, seat belts, headliners, etc. Concealed
components include Noise Vibration and Harness (NVH) components,
tyre cords, liners, composite reinforcements for automotive bodies, civil
and military aircraft bodies, wings and engine components, etc.
The Mobiltex segment's growth depends largely on the growth of the

automotive sector in India, which has been brisk in recent years. India's
Mobiltex segment is hence expected to grow at a rate of 17% to US$
1,870 Million by 2016-17 as per estimates of the Working Group on
• Seat Belts: IFB Autoliv India, Abhishek Auto Industries, Bond Safety
Belt and Rane TRW
• Seat covers: Faze Three Limited, Shamken Multifab and Bhilwara
Melba Limited
• Automotive interior carpets: Uniproducts India, Bajaj Carpets, Hitkari
Fibres and Supreme Non-wovens
• Headliner fabrics: Uniproducts (I) Ltd and Supreme Non-woven Pvt
Ltd
• Insulation felts: Uniproducts India and Supreme Treves Pvt. Limited
• Nylon tyre cord fabric: SRF and Century Enka
• Airline disposables: Chaitanya fibres and JMDI Group
5. Clothtex (Clothing Components)

The Clothtex segment of technical textiles includes fibres, yarns and
textiles used as technical components in the manufacturing of clothing
such as sewing threads, interlinings, wadding and insulation; it does not
include the main outer and lining fabrics of garments, nor does it cover
protective clothing.
The Indian Clothtex segment is expected to grow at a rate of 22% to

US$ 4,277 million by 2016-17 as per estimates of the Working Group on
8 Investor Guide
• Shoe laces: Neelam Shoe Lace Industry (Delhi), Indian Shoe Lace
(Agra)
• Interlinings: Bombay Dyeing, Ruby Mills, Ashima Syntex and Talreja
Textiles
• Nonwoven interlining fabric: Supreme Nonwovens Pvt. Ltd., KK
Nonwovens India, Freudenberg Nonwovens India Pvt. Ltd.
• Zip fasteners: YKK India Private Limited, Tex Corp. Ltd., Zip
Industries Ltd.
• Elastic narrow fabrics: Spica Elastic Private Limited, Sky Industries
• Hook and loop tape fasteners: Sky Industries Limited, Siddartha
Filaments Private Limited
• Sewing threads: Madura Coats, Mahavir Spinning Mills (Vardhman
Threads) and Precot Meridian
6. Oekotex (Ecological Protection Textiles)
Oekotex stands for new ideas and interesting concepts using Technical
Textiles for environmental protection, waste disposal and recycling. It
overlaps with several other areas, including industrial textiles (filtration
media), geotextiles (erosion protection, insulation and sealing of toxic
waste) and agricultural textiles (e.g. minimizing water loss from the land
and reducing the need for use of herbicides by providing mulch to
plants). The products under Oekotex segment can include
geomembranes, geosynthetic clay liners from Geotex segment; air and
water filters from Indutex segment, etc.
Growth of this segment depends upon the inclination of an economy in

adopting the ecologically balanced concepts in environmental protection,
waste disposal and recycling over the traditional methods which
adversely impact the environment. Indian Oekotex segment is expected
to grow at 22% to US$ 66 million by 2016-17 as per estimates of the
Working Group on Textiles and Jute Industry, Ministry of Textiles,
Government of India.
9 Investor Guide
7. Geotex (Geotextiles in Civil Engineering)
The principal functions performed by Geotextiles are
confinement/separation, reinforcement, filtration and drainage, and
protection. Application areas include civil engineering (roads and
pavements, slope stabilization and embankment protection, tunnels, rail-
track bed stabilization, ground stabilization and drainage, etc), marine
engineering (soil erosion control and embankment protection,
breakwaters) and environmental engineering (landfills and waste
management). As geotextiles reduce the land required and disturbances
to the local environment during the construction of infrastructure, they
offer several economic and environmental advantages.
Geotextiles products include geogrids, geonets, geopipes, geocells,

geomembranes, geocomposites, prefabricated vertical drains, geotubes
etc. With the growing emphasis on biodegradable products, fibres like
woven jute have also attracted significant interest as temporary
stabilizing material in infrastructure applications.
The Indian Geotex segment is expected to grow at a rate of 22% to US$

201 Million by 2016-17 as per estimates of the Working Group on Textiles
and Jute Industry, Ministry of Textiles, Government of India. Key Indian
manufacturers in the segment include: Strata Geosystems, Garware
Wall Ropes, SRF, Techfab India, Skaps, Terram, Maccaferri, Kusumgar,
Neo Corp International Limited, Shri Ambica Polymer Private Limited,
Shri Jagdamba Polymers Ltd., International Packaging Product Pvt. Ltd.,
Texel Industries Ltd., Aadi Plastic Industries Pvt. Ltd., Supreme
Nonwoven, Charminar Nonwoven etc.
8. Packtex (Packaging and containment):

One of the important uses of textiles is the manufacturing of bags and
sacks, traditionally from cotton, flax and jute but increasingly from
polypropylene. Products covered under Packtex range from polymer-
based bags used for industrial packing to jute-based sacks used for
packaging food grains and packaging used for tea. This packaging
(excluding jute) is also referred to as flexible packaging materials. The
ability to re-use these containers in many applications in place of
10 Investor Guide
disposable bags and sacks is another driver for their wider use. Products
include polyolefin woven sacks (excluding FIBC), FIBC, leno bags,
wrapping fabric, jute hessian and sacks (including food grade jute bags),
soft luggage products (TT component), tea-bags (filter paper), etc.
The Indian Packtex segment is expected to grow at a rate of 22% to

• Raffia: Texplast Industries, Tulsyan NEC, Rishi Techtex for Raffia

• Soft luggage: VIP industries, Universal Luggage
• Jute hessian and sacks: Cheviot Co Ltd, Gloster Jute Mills Ltd.
9. Hometex (Home textiles):
The Hometex segment of technical textiles comprises the textile

components used in household applications. These products range from
blinds used in houses to filter products used in vacuum cleaners, and
are also important components in fibre-fills in mattress and pillows.
Hometex products are made of both natural and synthetic fibres. Woven
fabrics are still used to a significant extent as carpet, furniture backings
and curtain header tapes. However, nonwovens such as spun-bond have
made significant inroads into these larger markets while various dry-laid
and hydro-entangled products are now widely used in household
cleaning applications in place of traditional mops and dusters.
Indian Hometex segment is expected to grow at a rate of 20% to US$
3,542 million by 2016-17 as per estimates of the Working Group on
• Fibre-fill: Reliance Industries Limited, Ganesh Polytex, Arora Fibres
limited, Alliance Fibres, Nirmal fibres Private limited
• Carpet backing cloth: Ludlow Jute, Birla Corporation, Gloster Jute
• Stuffed toys: Hanung Toys & Textiles Ltd
• Blinds: Hunter Douglas, Mac Décor Ltd., Aerolux India Private
Limited and Viesta
11 Investor Guide
• Mattresses and pillows: Kurlon Ltd. and Sleepwell
• Flock fabrics: The Rishabh Velveleen Limited, Girdhar & Company,
Sangam Group of Companies, Chiripal Group of Companies and
Niranjan Deco Flocks
• PU coated fabrics: Jasch Group, NELCO, Aman Leather
10. Protex (Protective and safety clothing and textiles):

Protective Textiles are textile products and related materials used in the
manufacture of protective clothing for personnel working in hazardous
environments. Protective clothing includes garments for protection from
harmful chemical environment, extreme temperature environments, low
visibility, ballistics, and protection from other types of severe impact
hazards. Protex products are also used for sensitive instruments during
high-risk engagements and procedures. Protex products include bullet-
proof jackets, radiation protection textile/NBC suits, high-altitude
clothing, fire-retardant fabrics and apparel, ballistic protective clothing,
high-visibility and foul weather clothing, chemical protection clothing,
industrial gloves, radiation protection textiles, etc.
The Indian Protex segment is expected to grow at a rate of 23% to US$

967 million by 2016-17 as per estimates of the Working Group on Textiles
and Jute Industry, Ministry of Textiles, Government of India. Key Indian
manufacturers in the segment include:
• Bullet proof jackets: Tata Advanced Material Limited, Anjani
Technoplast
• Chemical coated fire retardant fabrics: Rajasthan Weaving and
Spinning Mills Limited, Jaya Shree Textile
• Inherent fire retardant fabrics: Trevira from Reliance Netherlands B.V,
Rajasthan Weaving and Spinning Mills Limited
• Fire/flame retardant apparel: Tara Lohia Pvt. Limited, Mallcom India
Limited
• Nuclear Biological and Chemical (NBC) suits/Hazmat suits: The
Ordnance Factory
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• High-visibility clothing: Reflectosafe, Intech Safety Private Limited
• Chemical protection clothing: Northstar Safety Products Pvt. Ltd.
(Chandigarh), Intech (Kolkata), and Jyotech Engineering Co. Pvt. Ltd.
• High-altitude clothing: Ordnance Factory Board, Entermonde
Polycoaters
• Industrial gloves: Mallcom India Limited, Rajda Industries and
Exports Pvt. Ltd.
11. Indutex (Industrial products and components):

Indutex includes textiles used directly in industrial processes, as well as
textiles incorporated into industrial products, such as filters, conveyor
belts and abrasive belts, as well as, reinforcements for printed circuit
boards, seals and gaskets and other industrial equipment.
The Indian Indutex segment is expected to grow at a rate of 18% to

• Decatising Wrapper: Bombay Dyeing, JKT Fabrics and Noor Textiles

• Bolting Cloth: Bombay Bolting Centre, Surat Bolting, Khanna Bolting
• Battery Separators: Daramic Products and AGM separators
• Backing Cloth for Coated Abrasives: Madura textiles and Keetex
Textile
• Conveyor Belts: Phoenix Yule, MRF, Sempertrans Nirlon
• Drive Belts: Fenner India, Pix transmissions, Nirlon Ltd and L. G.
Balakrishnan & Bros Ltd.
• Glass Fibre Fabric: UP Twiga Fibres, Montex Fibre Glass, Satyaluxmi
International, SRM International
12. Sportex (Sport and leisure):

Textiles used in the sports and leisure industries have diverse
applications ranging from artificial turf used in sports surfaces to
advanced carbon fibre composites for racquet frames, fishing rods, golf
13 Investor Guide
clubs and cycle frames. Other highly visible uses are balloon fabrics,
parachute and paraglide fabrics and sailcloth. Sportex products include
sports composites, artificial turf, parachute fabrics, ballooning fabrics,
sail cloth, sleeping bags, sport nets, sport shoes components, tents,
swimwear etc.
The Indian Sportex segment is expected to grow at a rate of 17% to

US$ 622 million by 2016-17 as per estimates of the Working Group on
• Sports composites: Sanspareils Greenlands Pvt Ltd., Soccer

International Pvt Ltd., Mayor International Limited
• Parachute fabrics: Kusumgar Associates (Mumbai) and Oriental
Synthetics & Rayon Mills Pvt. Ltd (Mumbai)
• Ballooning fabrics: Bandhu Aerospace Private Ltd
• Sleeping bags: Standard Gram Udyog Sansthan, Kanpur Tent
Factory, Mahalaxmi Textile Industries
• Sport nets: Garware Wall Ropes and Kwality Nets
• Shoe components manufacturers: Reebok, Adidas, Nike, Bata,
Liberty, Lakhani, Relaxo
• Tent fabrics: M Kumar Udyog, Madhur Enterprises Pvt. Ltd.
(Kanpur), Tirupati Taxco Product Pvt. Ltd
1.2 Technical Textile consumption
The global consumption of technical textiles has grown to 23 million MT at a

Compounded Annual Growth Rate (CAGR) of 3% between 2007 and 2010.
Global demand for technical textiles has significantly grown since 1998, as
technical textiles command the highest consumption of all textile segments
worldwide, as witnessed in the figure 1 below:
14 Investor Guide
Figure 1: Changing Global Textile Consumption
25%
37%
Technical textiles
38%
33% Apparel
Home Textiles
37% 30%
1998 2010
Source: Industrial Fabrics Association International (IFAI)
As India is the second largest textile economy in the world following China,
India's potential contribution to the global technical textiles market is
extensive. USA, Western Europe and Japan account for 65% of the global
consumption of the technical textiles, while China's consumption comprises
over 15% of global figures, and India's consumption only 8.6% of global
consumption of technical textiles1.
Nonetheless, the sector has demonstrated encouraging growth trends in

India. The Indian technical textiles market has grown at CAGR of 11% to an
estimated US$ 11,491 million between 2007-08 and 2011-122. Furthermore,
India's technical textile products are also growing increasingly prominent in
global markets, as the nation's exports of these products has increased by
nearly 60% from US$ 178 million in 2010-11 to US$ 284 million in 2011-123.
Packtex is currently the most dominant segment in the national technical

textile industry, controlling nearly 40% of the market share for technical
textiles in the country, followed by Hometex and Mobiltex at approximately
10%, each. Nonetheless, Sportex has demonstrated the highest potential for
growth, growing by 11% year-on-year. Oekotex and Protex also pose
encouraging prospects for growth, with Buildtex, Meditex, and Agrotex
expected to achieve moderate growth.
1
Report of working group on textiles and jute industry for the 12th five year plan, Ministry of
Textiles, Government of India
2
Baseline Survey of the technical textile industry in India, Office of the Textile Commissioner,
March 2009
3
Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and
Industry, Government of India
15 Investor Guide
Figure 2: Changing Global Textile Consumption
Oekotex
0%
Geotex
Packtex
1%
37%
Agrotex
1%
Protex
3%
Meditex 4%
Clothtex
Buildtex 15%
5%
Sportex
7%
Hometex
Mobiltex 12%
7%
Indutex
8%
Source: Baseline Survey of the Technical Textile
Industry in India, Office of the Textile Commissioner, March 2009
1.3 Growth enablers

The enablers for such market growth include:
a) Growth of Industry Sectors

A large number of technical textile products are consumed by
different industries, like automotive, healthcare, infrastructure, oil &
petroleum, etc. With increase in investments in industry sectors,
higher consumption and growing exports, the industrial sector is
poised for considerable growth.
b) Increasing Per Capita Income of Consumer

While India's per capita income increased by 14.3% from US$ 969
in 2010-11 to US$ 1,108 in 2011-124, promising economic growth
indicate corresponding trends for income growth. Holistic
4
Central Statistics Organisation, Ministry of Statistics and Programme Implementation,
Government of India. Data is as per current prices.
16 Investor Guide
development will encourage higher discretionary spending and
technology development.
c) Increasing adaptability and acceptance of products

Growing awareness about the superior functionality of technical
textiles will encourage higher consumption of these products.
d) Government's FDI promotion initiatives

To facilitate higher integration of technology into manufacturing
processes and end-products, Government of India has allowed up to
100% FDI under automatic route for the technical textiles segment.
Leading global manufacturers of technical textiles products will thus
be able to establish manufacturing units in India, either alone or
through partnerships with Indian industries.
Several Central and State government agencies are working

towards providing the necessary information to potential investors.
Ministry of Textiles, Government of India has also proactively
promoted India's technical textiles sector through several
international road shows.
These efforts have borne fruit, as several international technical

textile manufacturers, like Ahlstrom, Johnson & Johnson, Du Pont,
Procter & Gamble, 3M, SKAPS, Kimberly Clark, Terram, Maccaferri,
Strata Geosystems, have initiated operations in India.
e) Investment promotion schemes by Government

Investors establishing technical textile unit in India can avail several
benefits from central government schemes:
• Technological Upgradation Fund Scheme (TUFS)
• Benefits under Special Economic Zone (SEZ) and Scheme for
Integrated Textile Parks (SITP)
• Coverage of major machinery for technical textile manufacturing
under concessional customs duty list of 5%
• Certain technical textile products are covered under Focus
Product Scheme, under which exports of such products carry
duty credit scrip equivalent to 2% of FOB value of exports
17 Investor Guide
• Technological Mission for Technical Textiles (TMTT)
Additionally, several states in India also offer incentives and assistance

to investors, which can include electricity and stamp duty exemptions,
concessions in land registration, and single window clearance facilities
for investment project applications.
f) Scope for import substitution

While India imports US$ 364 million5 of technical textile products,
the country demonstrates significant consumption capacity and
demand for this technology-intense product segment, and hence
lucrative market opportunities for new entrants into the Indian
technical textile industry.
g) Scope for introduction of regulatory norms

Ministry of Textiles is working to institute regulatory norms for
technical textile products that align with those of developed nations.
Successful implementation of these norms can lead to exponential
increase in demand and consumption of technical textiles products
in India.
1.4 Trade trends
In consultation with industry, field experts and Centers of Excellences for

technical textiles, Ministry of Textiles is identifying HS Codes for the
technical textile products that are currently being traded under the HS Codes
of traditional textile products and those technical textile products that are
mixed with other products. Ministry of Textiles has identified 81 HS Codes
as technical textiles. The following report captures the trade trends for
products identified under these codes.
5
Import and export data is based on the 81 HSN Codes identified by Ministry of Textiles as
technical textile items
18 Investor Guide
Figure 3: India's trade in technical textiles
$518
500
400 $373 $364

$350
US$ million
300 $272 $259

$246
$198
200
100
0
2007-2008 2008-2009 2009-2010 2010-2011
Import Export
Source: Department of Commerce, Ministry of & Industry, Govt. of India
While India exports nearly 50% of all its production of technical textiles, the
increase of the country's exports at CAGR of 17.4% between 2010-11 and
2007-08 indicates encouraging global demand for India's technical textile
products. Furthermore, with CAGR of 16.4% in imports between 2007-08
and 2010-11 alone, Indian consumers have demonstrated significant demand
for technical textiles products. The country especially relies on imports for its
supply of Meditex (28% of consumption), Protex (16%), and Geotex (41%).
These statistics highlight not only concerted domestic needs, but also
India's potential to address global demands, for technical textiles products.
With advancing technology, higher integration with global markets, and
greater sensitization to market needs, the Indian technical textiles industry
demonstrates significant potential, for the development of local industry and
prospective entrepreneurs.
1.5 Major Investments in the Last Few Years

Technical textile is the fastest growing segment in textiles in India and has
generated considerable investor interest in the recent past. Following are the
major investments from foreign companies in India's technical textiles
sector:
19 Investor Guide
S. Name of the Investment Year of Segment of
No. Company Type/Size Investment Technical Textiles
1 Johnson and Johnson Subsidiary/ NA 1947 Meditex
2 Procter & Gamble Subsidiary/NA 1951 Meditex
3 3M 76% of Stake in JV/ NA 1988 Nonwovens,

Indutex, etc.
4 Dupont Subsidiary/US$ 1994 Protex
65.80 million
5 Kimberley-Clark JV/NA 1994 Meditex

6 Maccaferri Subsidiary/ US$ 1997 Geosynthetics
13.16 million
7 Freudenberg Subsidiary/ NA 1998 Indutex and Non

wovens
8 KARL OTTO Subsidiary/ US$ 1998 Meditex
BRAUN GmbH 9.21 million
9 Huntsman Subsidiary/NA 2000 Mobiltex,

Geotex
10 Schoeller Textil AG JV/ NA 2003 Protex
11 SKAPS Subsidiary/NA 2004 Geosynthetics

12 Strata Geosystems Ltd. JV/NA 2004 Geosynthetics
13 Ahlstrom Subsidiary/US$ 2006 Non-Woven
72.37 million
14 Teijin Subsidiary/NA 2006 Protex,

Composites etc.
15 Lindstrom Subsidiary/NA 2007 Protex
16 Klopman Subsidiary/US$ 2009 Protex

65.80 million
17 Honeywell Subsidiary/NA 2009 Protex and
Packtex
18 Terram Subsidiary/US$ 10 million 2010 Geosynthetics

19 Hollingsworth & Vose JV/NA 2011 Indutex
20 Investor Guide
Following are the latest investments in Technical Textiles in India:
S. Name of the Investment Year of Segment of No.

No. Tcompany Type/Size Investment Technical Textiles
1 Shri Laksmi Cotsyn Own/US$ 171.07million 2011 Protex

2 Lectra Subsidiary/NA 2012 Indutex
3 Alliance Polysacks Own/NA 2012 Packtex

Pvt. Ltd.
4 Alok International JV/NA 2012 Hometex
5 Caparo Group Subsidiary/NA 2012 Composites/

Mobiltec
6 Precot Meridian Ltd Own/NA 2012 Nonwovens
7 Toho Tenax Co Ltd. & JV/NA 2012 Composites
Hindoostan Technical
Fabrics Limited
8 Global Nonwovens Own/US$ 251.32 million 2012 Nonwovens
9 IKEA Subsidiary/US$ 2012 Hometex

1,973.85 million
10 Sanrhea Technical Textiles Own/NA 2012 Nonwovens
This is the right time for us

Mr K Ramachandran Pillai
CMD, National Textile Corporation
and all the entrepreneurs
Limited to invest in technical
textiles..
NTC has been cautious, like many other big textile players marketing and execution of projects. We have put INR 250
to venture into Technical textiles, due the market Cr, earmarked for 12 such Joint Ventures in technical
uncertainty and creation and implementation of standards textiles in different sub groups such as Geotextiles,
in use of technical textiles. The other factors being Protective textiles, Medical textiles and so on. NTC will be
expertise in the field of technical textiles. Although NTC is playing a major role in procurement manufacturing and
long being into conventional textiles and recently doing execution of Geotextile and infrastructural projects in India
very well in terms of production and marketing, we lack the in collaboration with Ministry of Textiles and help improve
technical textile expertise. Like any Government the infrastructure quality and life. NTC will also be helping
organization, we are cautious and through to start a new Indian forces in selecting, procuring and evaluating the
area before proper analysis. However with the recent right kind of technical textile garments and accessories for
thrust by the Government bodies, Center of Excellences its manpower.
and the ministry of textilis and with the support of
India is on the path of growth, being the second best
Government of India, NTC has initiated the venture into
performer in the world and being one of the largest
technical textiles in partnership of the world's best players
markets of Technical textiles. This is the right time for us
from USA, Germany and Japan. We have entered into the
and all the entrepreneurs to invest in technical textiles and
MOU with two of the companies for marketing tie-up in
be a part of sucess story of the growth of a nation.
technical textiles and ultimately will be moving into the
manufacturing, once we achieve the set targets of
21 Investor Guide
2
RESOURCE AVAILABILITY
IN INDIA
2 Resource availability in India
2.1 Infrastructure availability

India's technical textile sector is primarily SME-oriented, with manufacturing
majorly concentrated in the states of Maharashtra, Gujarat, Tamil Nadu,
Karnataka, and Punjab.
Ministry of Textiles has supported the establishment of 8 Centres of

Excellences (COEs) that focus on various segments of technical textiles.
These COEs act as one-stop centres for various services relevant to
technical textile industries, including:
• Facilities for testing and evaluating technical textiles products of

identified segments in collaboration with national and international
accreditations and collaborations with foreign institutes and
laboratories
• Research and development facilities
• Resource centres with I.T. infrastructure
• Facilities for indigenous development of prototypes
• Facilities for training personnel in the technical textile industry
• Knowledge sharing with stakeholders
• Incubation centre facilities
• Identification and drafting of product and process standards for

ensuring quality that is globally accepted
23 Investor Guide
Major manufacturing states for Technical Textiles
Upcoming technical textile parks Himachal Textile Park in 65 acres

Centre of Excellences for Project cost: Rs. 300 crores
technical textiles Products : Medical and industrial
Major manufacturing states for application use
Technical Textiles
Centre of Excellence for Protex
(NITRA) at Ghaziabad
Centre of Excellence for

Composites (ATIRA) at Ahmedabad
Centre of Excellences for: Nagaland Hi-Tech

1. Geotex (BTRA) at Mumbai
2. Agrotex (SASMIRA) at Mumbai Weaving Park
3. Sportex (WRA) at Thane
4. Nonwoven (DKTE) at Ichalkaranji
Pallavada Technical Textile Park

Products : Mobiltex , Buildtex ,
MarutiHi-Tech Park Ltd. Geotex , Indutex , Agrotex &
Project Cost: Rs. 500 crores Hometex
Centre of Excellences for:
MEP-OLBO
1. Meditex (SITRA) at Coimbatore
Project Cost: Rs. 100 crores 2. Indutex (PSG) at Coimbatore
2.2 Centres of Excellence (COEs)6

The Ministr y of Textiles has
updgraded existing and established
new Centers of Excellence (COEs)
for technical textiles under the
Technology Mission on Technical
Textiles (TMTT) launched by
Ministry of Textiles in 2010 to cover
6 product-focused COEs and 2
process-oriented COEs. W ith
ongoing collaborations with foreign
institutes and laboratories, and
wealth of experience and
knowledge in the technical textile industry, these COEs are especially
resourceful for industries considering diversifying into and in the Indian
6
For more details on Centre of Excellence, please refer to our publication “Compendium on COEs”
uploaded on http://technotex.gov.in/
24 Investor Guide
technical textiles sector. The COEs thus play a significant role in enabling
Indian industries to realize their potential in addressing demand and scaling
attractive opportunities in each of the 12 technical textiles sub-segments.
Product-focused Centres of Excellence
Agrotex Synthetic & Art Silk Mills Research Association (SASMIRA), Mumbai
Geotex Bombay Textile Research Association (BTRA), Mumbai
Indutex PSG College of Technology (PSG), Coimbatore
Meditex South India Textile Research Association (SITRA), Coimbatore
Protex Northern India Textile Research Association (NITRA), Ghaziabad
Sportex Wool Research Association (WRA), Thane
Process-oriented Centres of Excellence
Composites Ahmedabad Textile Industry's Research Association (ATIRA), Ahmedabad
Nonwovens DKTE Society's Textile & Engineering Institute (DKTE), Ichalkaranji
a) COE on Agrotex
The Synthetic & Art Silk Mills' Research Association (SASMIRA) is a co-
operative venture set up by the Man-made Textile Research Association
(MANTRA) after independence as a multi-functional institute to serve its
scientific and technological needs. SASMIRA was established on 12th
January, 1950 after due recognition by the Council of Scientific and Industrial
Research under the Ministry of Science and Technology, Government of
India.
SASMIRA is engaged in various research and development projects in man-

made textiles for apparel, industrial and defence applications. Considering
the importance of this field SASMIRA had altered its focus towards technical
textiles for the past ten years. Various products and processes have been
developed viz. geotextiles, Agrotextiles, defence textiles, sport textiles, etc.
a few of which have been patented also. Seminars, conferences and
workshops are also conducted regularly at both national and international
level, to cater awareness in emerging areas of technical textiles.
25 Investor Guide
The Ministry of Textiles, Government of India has designated SASMIRA as a
Centre of Excellence for Agrotex since March 2008. SASMIRA has fully
equipped laboratories to carry out testing, evaluation and investigation of a
variety of textile and allied materials, with specialized services for technical
textiles. The laboratory is accredited nationally by NABL, India and
internationally by A2LA, USA for Mechanical, Chemical and Microbiological
testing of textiles and allied substrates. SASMIRA laboratories are also
recognized by International Bureau for Standardization of Man-made Fibres
(BISFA), Bureau of Indian Standards (BIS) and several Government agencies.
The COE, Agrotex assists the industry with training demonstration, apart
from creating awareness and knowledge sharing. The textile entrepreneurs
would be guided with help of project profiles on various agrotextile products
and would also be provided standards and norms for processing.
b) COE on Geotex
The Centre of Excellence on Geotex was launched in 2008 in partnership

with Bombay Textile Research Association (BTRA), and is supported by
Ahmedabad Textile Industry's Research Association (ATIRA).
BTRA has established a new Geotex Laboratory with testing facilities to test
Geotextiles, Geomembranes, Geocomposites, Gabions, Geosynthetic Clay
Liner, Geogrids, Prefabricated Vertical Drain, etc. BTRA is also strengthening
its information resources on Geotex by procuring various books and
international test methods such as ASTM, INDA, EDANA, ISO, etc.
Apart from testing and development activities, BTRA also provides training
to users and entrepreneurs in Geotex and other fields of technical textiles.
The COE also offers technical consulting services to entrepreneurs, including
DPR preparation, to support the establishment of new manufacturing
facilities for geosynthetics.
c) COE on Meditex
A Centre of Excellence (CoE) for Medical Textiles has been established at

SITRA under SGDTT and upgraded under TMTT promoted by Office of the
Textile Commissioner, Ministry of Textiles, Government of India. Housed
26 Investor Guide
within the main premises of the parent institution, since its inception in April
2008, the CoE will move to its new buildings – a sprawling 57760 sq.ft.
complex – when the same gets ready by June 2013.
Among several of the activities pursued under the Centre of Excellence

umbrella are skill development, consultancy assignments, preparation of
detailed / bankable project reports for prospective entrepreneurs, creation of
an Information Resource Centre that will house several books, journals,
periodicals and back volumes, published national and international standards
related to Medical Textiles together with very many number of samples
procured from market sources as well as produced in-house.
The Centre of Excellence boasts of the best pilot plant facilities as well as
state of the art laboratory test instrumentation to carry out development of
prototypes and render full spectrum of incubation services to prospective
entrepreneurs.
Standardization, in industrialized countries, is recognized as a powerful tool

to increase productivity through interchangeability and reduction of variety
and that, with enlarging volumes of trade among industrialized countries,
Internationally accepted norms or standard is the need of the hour to
support this development; as a demonstrable measure of this
understanding, the Centre of Excellence has been at the forefront in
preparing Draft Standards rich in their content and quality and is working in
close association with the Bureau of Indian Standards to bring out these as
published standards in lieu of their international counterparts.
Medical Textiles, being a sun-rise industry, the importance of Knowledge

Dissemination for the benefit of business communities and aspiring
entrepreneurs need not be over emphasized; with this in mind, seminars /
workshops at several of the industrial clusters, including Tiruppur, Palladam,
Bangalore and others, have been conducted benefitting some 640
participants in all.
With an objective of shaping Indian Textile Industry as a strategic player in

the emerging sector of Medical Textiles, the Centre of Excellence is
undertaking a wide gambit of activities aimed at lending comprehensive
support to stakeholder enterprises, the fruits of which will surface more &
more in times to come.
27 Investor Guide
d) COE on Protex
The COE Protex was established by NITRA in association with IIT, Delhi
under Scheme for Growth and Development of Technical Textiles (SGDTT),
and is being upgraded under TMTT. NITRA's infrastructure facilities for
quality evaluation include six NABL-accredited QC laboratories capable of
analyzing materials as per IS, ASTM, DIN, BS, ISO, JASO, AADTCC, EN and
other customized standards. NITRA's library and information centre have a
stock of approximately 4,000 books, including 170 of NITRA's own
publications. The COE also subscribes to 110 national and international
journals. The library and information centre is available for textile industry
professionals and associated individuals. NITRA is also an ISO-9001 certified
textile research organization.
NITRA has established a Protex Laboratory with state-of-the-art testing

instruments, such as flammability tester, limited oxygen index tester, contact
heat tester, washing and dry cleaning cylinder, vertical & horizontal
flammability tester, radiant heat transmission tester, vibroscope & vibrodyne,
seam fatigue tester etc. The COE now also has a “Fire Testing Lab” to test
textile and allied products for heat, flame and safety-related characteristics
as per International and IS standards. NITRA also got NABL accreditation
(NABL Accreditation Certificate Numbers: T-0852 & T-0853) in November'
2011 and has collaboration with Bolton University, UK in the fields of R&D,
consulting and training.
e) COE on Composites
Ahmedabad Textile Industry's Research Association (ATIRA) has been
designated as the Center of Excellence on Composites in the year 2012.
ATIRA's stated objective is to develop advanced composites through new
and innovative processes in order to achieve weight reduction, high
mechanical properties and cost competitiveness. The COE is also committed
to enhancing the knowledge base in composites through research,
development and training.
ATIRA has established several testing laboratories, including a Mechanical

Testing Laboratory, Design and Simulation Laboratory, and a Heat and Flame
Testing Laboratory with state-of-the-art testing instruments. Additionally,
28 Investor Guide
ATIRA received accreditation from North West Composites Center (NWCC)
in Manchester, UK in January 2011. Additionally, ATIRA has identified NABL
accreditation to be necessary. ATIRA has also conducted ongoing
collaborations with Karlsruhe Institute of Technology, Fraunhofer ICT, and
Fraser Institute in Germany for product and prototype design since August
2010.
ATIRA's Library and Information Centre has stock of over 70,000 books,
reports and publications. ATIRA also has a well-established and renowned
incubation center with equipment for developing prototypes for polyfiber-
reinforced rope, testing carbon-fiber and glass-fiber products, as well as a
nanofiber lab.
f) COE on Indutex
PSG College of Technology established in 1951 is one of the many

educational institutions nurtured by PSG & Sons Charities Trust. The college
is Government Aided, Autonomous, ISO 9001 2008 certified and affiliated to
Anna University. Equipped with latest facilities and excellent infrastructures,
the college offers a total of 48 full time and part time programs in Science,
Engineering and Management at UG & PG levels. The institution has a strong
alumni base, most of them occupying coveted positions in many
educational, industrial and research organizations all over the world
The Department of Textile Technology, Fashion Technology and Automobile

Engineering of PSG College of Technology is sanctioned in 2010 with CoE in
Industrial Textiles by Ministry of Textiles under Technology Mission on
Technical Textiles (TMTT) scheme with Rs.24.5 crores with an additional
investment of Rs.15 Crores by the management for the infrastructure facility,
out of this 20 crores is to be used for machinery and Testing equipment. This
infrastructure is coming up in a sprawling campus at PSG Neelambur
campus with a built up area of approximately 40,000 sq.ft.
The term 'Industrial Textiles' refers to a subgroup of a wider category of

Technical Textiles, referring specifically to those textile products used in the
course of manufacturing operations (such as filters, conveyor belts, abrasive
substrates) or which are incorporated into other industrial products (such as
electrical components, cables, flexible seals, acoustic and thermal insulation
of industrial appliances).
29 Investor Guide
The main objective of this COE is to build an infrastructure specifically for
Industrial Textiles, which supports high quality research and industrial
collaboration. It will provide a platform for the industry and for the new
entrepreneurs to develop new products, standards development, upgrade
their existing products, and utilize pilot scale facilities for rapid sample /
prototype development. One of the many functions of the COE is to transfer
the knowledge to the industry through organizing workshops, seminars and
conferences.
g) COE on Nonwovens
The D.K.T.E. Society's Textile & Engineering Institute was founded in 1982. It
is based in Ichalkaranji (popularly known as 'Manchester of Maharashtra')
which is one of the prominent hubs of the decentralized textile segment.
DKTE Society's Textile & Engineering Institute – Ichalkaranji is one of the
premier textile engineering institutes in India, and has 8 departments, 175
full time academic staff and 2960 full time students.
DKTE is operating the Center of Excellence for Nonwovens under TMTT. The
COE has established physical testing and manufacturing facilities and has
made encouraging progress in developing prototypes and conducting
incubation activities.
Activities of DKTE COE in Nonwovens:
• Testing
• Training
• Technology Business Incubation
• Rapid Prototyping
• Research & Development
• Consultancy and support for business start-ups
30 Investor Guide
h) COE on Sportex
Wool Research Association (WRA) is a Textile Research Association
established in 1963 by the woolen and worsted industry. Since last two
decades, it had modestly engaged itself in the development of technical
textiles. It had undertaken a few sponsored projects relating to Sportex,
Indutex, Mobiltex, etc.
WRA was assigned the Center of Excellence for Sport textiles in 2012 and
has already initiated several training activities and seminars. In the coming
year, the COE will also obtain the requisite equipment for implementing
testing and prototype development activities.
2.3 Textiles Parks
Following are the Technical Textile Parks being established in various states in
India:
Textile Park Location Nature of Activities Features/ Advantages
Pallavada • The Project site is The Pallavada Park is • Centre of Excellence

Technical located 8 Kms from being built in an area of • Cheap Power,
Textiles Park, Gummidipoondi, 72 acres in Tiruvallur
Tamil Nadu7 Chennai at Tamil Nadu district. It will have 14 • Captive Power Project
(Exclusive for • The nearest airport is Mobiltech units, 5 • Common Effluent
technical 40 Kms away at Buildtech units, 2 Treatment Plant
textiles) Chennai, the site very Agrotech units and 6
• Common Solid Waste
near to NH – 45 and Hometech units along
Management &
Rail connectivity is with facilities for R&D
Disposal System
through Chennai and quality testing labs.
• GRP Drains for
Junction.
Effluent
• The Nearest sea port
• Treated Water Supply
is Chennai seaport 20
System
Kms from site.
• Uninterrupted Power
Supply
Baramati Hi • Baramati Hi-Tech The establishment of • Baramati Hi-Tech

Tech Textile Textile Park Ltd. BHTPL also aimed at Textile Park offers
Park, (BHTPL) was set up economization of the state-of-the-art
Maharashtra8 over sprawling 60- production costs. The infrastructure
acres of land. park has set up ultra
modern common facility
7
C.S. Architects Pvt Ltd, “Pallavada Technical Textiles Park,”
http://www.csapl.co.in/download/ProposalForTextileParks.pdf, accessed on 9 January 2013
8
Sunetra Pawar, “Baramati Hi-Tech Textile Park Ltd,” SunetraPawar.info,
31 Investor Guide
• BHTPL is situated in center which includes a • Also makes available
MIDC region of training centre for local, skilled and
Baramati about 100 training of all women trained labour.
kms from Pune in employees, bank • The Park provides a
Maharashtra State. extension counter for common Effluent
• BHTPL consists of a various banking needs, Treatment Plant (ETP)
comprehensive group R&D and Quality Centre to process industrial
of textile oriented for designing of world sewage
units specializing in class products and
meeting global quality • Also has a Solar
functions such as Power generation unit
Garmenting, Apparel standards, and an
innovative creche within for generating solar
Printing & Packaging, electricity.
Home Furnishing, the campus.
Embroidery and
Technical textile
within the Textile Park.
• It also has a series of
smaller units available
as ancillary support
units.
Gujarat Eco- • Good connectivity The Gujarat Eco Textile • Cheap Power, Captive
Textile Park, • Based in Existing Park in Surat, Gujarat is Power Project
Gujarat9 Textile Hub – Surat one of the first eco- • Common Effluent
textile parks in India with Treatment Plant
• Availability of labour specific focus on
and water • Common Solid Waste
environmental issues.
Management &
• Natural Gas and The Park provides
Disposal System
Effluent Disposal excellent infrastructure
Point and facilities to enable • GRP Drains for
the industry in reducing Effluent
the input costs and • Treated Water Supply
meeting the regulatory System
and trade related • GPCB norms are
compliances with addressed
respect to quality,
• Centre Of Excellence
environment and social
standards thereby • Common Laboratories
improving their (Quality,
competitiveness to Environmental,
achieve rapid progress in Physical and
every activity of their Chemical)
business. • Design Studio (CAD
Centre)
• Conferencing &
Meeting Facilities
• Training Centre
• Consultant House
• Library
• Exhibition Hall
9
Gujarat Eco-Textile Park,” GETP website, http://www.getp.in/, accessed on 9 January 2013
32 Investor Guide
Jaipur Tex • The park has total • Weaving (600 looms, • Forward integration
Weaving Park area of 94.50 Acres 5.5 cr. mts/year) by way of garmenting,
Ltd. (JTPL), with total investment • Sizing (5 units, 4.4 cr. made up and
Rajasthan10 expected in the park mts/year) accessory units
to be US$ 45.45 • Unique marketing
million with expected • Stitching (43 lacs
pieces/year) opportunity through a
total employment of separate company -
around 12000 (direct • No. of Entrepreneurs: JTPL Texmart,
and indirect) at Silora 51 dedicated for the park
in Rajasthan to establish forward
• Complete weaving
• Located on National solutions linkages in
Highway No. 8, nearly incorporating sizing contemporary global
100 Kms. from Jaipur and weaving on Airjet scenario
and 7 kms. from and Rapier machines • JTPL is formulated
Kishangarh, along the of single and double under Public-Private
golden quadrilateral width partnership
• Proximity to the framework
processing center of • JTPL is to facilitate
Bhilwara, renowned the entrepreneurs to
as Manchester of compete
Northern India internationally by
• Situated in project collectively
influence area of synergizing on a
Delhi-Mumbai cluster approach
Industrial Corridor • JTPL is to facilitate
(DMIC) the units to meet
international
environmental and
social standards
• JTPL is managed by
Board of Directors
backed by vast
experience in running
Textile units for last
40 years
• JTPL would be
equipped with state-
of-the-art machines
manufacturing Textile
products like Home
Furnishings, Suiting,
Shirting, etc., with
capacity to diversify
Technical Bellary district of With support from

Textile and Karnataka Ministry of Handloom
Machinery and Textiles, Government
Mega Project, of Karnataka, Technical
Bellary, Textiles and Machinery
Karnataka11 Mega project is being
(Exclusive for planned with estimated
technical investments of US$
textiles) 18.18 million.
10
“Jaipur Texweaving Park Ltd,” JTPL website, http://www.jtplindia.co.in/, accessed on 9 January 2013
11
Department of Handlooms & Textile, Government of Karnataka
33 Investor Guide
2.4 Skill set availability
India has over 500 universities,
as well as more than 30,000 Distribution of population by occupation
colleges and 7,000 technical 10%
13%
institutions. Approximately 4.2
1%
million people are added to
India's talent pool every year, 12%
with 4 million graduates and
0.26 million post-graduates12.
The Indian technical textile

industry employed 1.1 million 36%
people in 2011-12, 25% higher
than employment of 0.88 million
18%
in 2009-10. Skilled manpower
2%
composes approximately 55% of
the total manpower employed in Skilled worker Student
technical textile industry13. Businessman Retired
Petty trader Not working
The introduction of new
Executive Unskilled worker
technologies necessitates and
creates promising opportunities Source: CMIE, MOSPI
for training seminars to address
skill gaps of textiles technologist
and operators. In today's dynamic business environment, the demand for
trained manpower with requisite competencies for manufacturing quality
products efficiently with sophisticated machines is a recognized need across
sectors, but especially in rapidly-evolving industrial domains like technical
textiles.
Government of India has implemented several initiatives to address the

rising demand for skilled manpower in the technical textiles sector. Scheme
for Growth and Development of Technical Textiles (SGDTT), Technology
12
Doing Business in India, Ernst & Young, 2012
13
Baseline Survey of the Technical Textile Industry in India, Office of the Textile Commissioner, March
2009
34 Investor Guide
Mission on Technical Textiles (TMTT) include components for sponsoring
training workshops and technology through the COEs for technical textiles.
Furthermore, Government of India also launched Integrated Skill

Development Scheme (ISDS) for the textiles and apparel sectors, including
jute and handicrafts in July 2010 with the objective of building capacities of
institutions providing skill development and training in the textiles sector.
This scheme is in line with the National Skill Development Policy, which
targeted training 10 million persons by the year 2022 in the textiles sector.
The scheme proposes implementation by leveraging existing institutional
strength and training experience within the Ministry by dual mode:
a. Component-l: Utilizing the training institutes within the Govt. sector
b. Component-ll: Private sector participation through a PPP Model
Activities include courses for basic training, skill upgrade and

entrepreneurship development in all textile sectors including technical
textiles.
Furthermore, several stakeholders in the technical textile industry have also

initiated efforts to promote the development and training of personnel in the
sector. Following bodies have some of the leading technical textile related
training facilities:
a. Textile Research Association

S. No Name Location
1. Northern India Textile Research Association Ghaziabad, Uttar Pradesh

2. Ahmedabad Textile Industry Research Association Ahmedabad, Gujarat
3. Bombay Textile Research Association Mumbai, Maharashtra
4. The South India Textile Research Association Coimbatore, Tamil Nadu

5. Synthetic and Art Silk Mills' Research Association Mumbai, Maharashtra
6. Wool Research Association Thane, Maharashtra
7. Indian Jute Industries' Research Association Kolkata, West Bengal
8. Man-Made Textiles Research Association Surat, Gujarat
35 Investor Guide
S. No Name Location
1. DKTE Society's Textile & Engineering Institute Ichalkaranji, Maharashtra

2. PSG College of Technology Coimbatore, Tamil Nadu
3. The Bannari Amman Institute of Technology Coimbatore, Tamil Nadu
4. RVS College of Engineering Coimbatore, Tamil Nadu

5. The Technological Institute of Textiles and Sciences (TITS) Bhiwani, Haryana
6. Institute of Chemical Technology Mumbai, Maharashtra

7. Govt. College of Engineering & Textile Technology Serampore, Hooghly, West
Bengal
8. College of Textile Technology Behrampur, Murshidabad,
West Bengal
9. Uttar Pradesh Textile Technology Institute Kanpur, Uttar Pradesh

10. Giani Zail Singh College of Engineering & Technology Bathinda, Punjab
11. Dr B R Ambedkar National Institute of Technology Jullundhar, Punjab
12. Manikya Lal Verma Textile and Engineering College Bhilwara, Rajasthan
13. Institute of Textile Technology Cuttack, Orissa
14. Department of Technology and Engineering, Maharaja Vadodara, Gujarat

Sayajirao University of Gujarat Baroda Sarvajanik College of
15. Sarvajanik College of Engineering & Technology Surat, Gujarat
16. L.D. College of Engineering, Navarangpura Ahmedabad, Gujarat
17. Anuradha Engineering College Buldana, Maharashtra

18. Veermata Jeejabai Technological Institute Mumbai, Maharashtra
19. College of Engineering & Technology Akola, Maharashtra
20. Kumaraguru College of Technology Coimbatore, Tamil Nadu
With the implementation of schemes and incentives proposed in the 12th

FYP and continuation of existing schemes, the technical textiles sector is
expected to grow at 20% per annum. Assuming the growth in
employment corresponds directly with growth in the industry, the
employment in the technical textiles sector is expected to exceed 3
million by 2016-17
36 Investor Guide
th
30 grow
r
cto
se
25 um
a nn
r
pe
%
20 20
Crores
11% sector growth

15
10
0
2007 - 2008 - 2009 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 - 2016 -
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Ernst & Young Analysis
2.5 Raw material availability

Technical Textiles are manufactured from a variety of fibres and filaments
based on the desired properties of the end product. The fibres and filaments
can be broadly classified as natural and man-made.
Natural fiber Man Made Fibres and Polymers

Synthetic fiber High performance fiber
• Cotton • Viscose • Aramid

• Silk • Polyamide • UMHW Polyethylene
• Sisal • Polyolefin • Carbon
• Flax • Flax • Glass, etc.
• Wool, etc. • Polyester, etc..
37 Investor Guide
Natural fibres
While India is a rich source of natural fibres, the requisite fibres for technical
textiles are domestically available in ample supply. The natural fibres
predominantly used in technical textiles include:
a. Cotton
b. Jute
c. Silk
d. Coir
Man-made fibres and polymers

Man-made fibres (MMF) and man-made filament yarns (MMFY) account for
around 40% share of the total fibre consumption in the textile industry as a
whole. These fibres form a key raw material for the technical textile industry
because of their customizable properties. The key man-made fibres,
filaments and polymers used as raw materials in technical textiles are:
a. Man-made fibres and filaments
• Viscose
• Polyester
• Nylon
• Acrylic/Modacrylic
• Polypropylene
b. Polymers
• HDPE
• LLDPE
• LDPE
• PVC
India ranks among one of the world's largest producers of MMF and MMFY,
with production of 1284.64 million kg and 1549.80 million kg in 2010-11,
respectively. While production of MMF and MMFY registered growth of
38 Investor Guide
1.31% and 1.78%14, respectively, over the previous year alone, the last
decade has witnessed a steady increase in production and consumption of
major synthetic fibres and polymers, resulting in a fair degree of self-
sufficiency in the domestic MMF and MMFY markets.
The following map shows the spread of various raw materials across
different states in the country.
• “The Cotton Corporation of India,”: Cotton Corporation of India Limited website,

http://cotcorp.gov.in/marketing-faq.aspx#ans10, accessed on 17 December 2012
• “State wise production and raw jute,” Office of the Jute Commissioner website,
http://jutecomm.gov.in/statewise%20P%20&%20R%20jute.htm, accessed on 17 December 2012
• Ministry of Textiles, "Final Report - National Fibre Policy, Sub-Group on Silk," Ministry of Textiles
website, http://technotex.gov.in/Revised_Final_Report_-_Baseline_Survey_of_Technical_Textile
industry_in_India.pdf , accessed on 17 December 2012
• “Annual Report, 2007-08," Ministry of Micro, Small and Medium Enterprises website,
http://msme.gov.in/Chapter 6-Eng_200708.pdf , accessed on 17 December 2012
• Office of the Textile Commissioner, "Baseline survey of the technical textile industry in India," Ministry
of Textiles, Technical Textiles website, March 2009, http://technotex.gov.in/Revised_Final_Report_-
_Baseline_Survey_of_Technical_Textile industry_in_India.pdf, accessed on 17 December 2012
14
“Man-made Fibre and Filament Yarn industry,” Ministry of Textiles, Government of India website, 11
April 2012, http://texmin.nic.in/sector/sector_mmf_mmfy.pdf, accessed on 16 December 2012
39 Investor Guide
3
STANDARDS FOR TECHNICAL

TEXTILES INDUSTRY
Standards for Technical
3
Textiles industry
Guiding production processes and defining product quality measures,

standards provide a valuable framework for manufacturers in the technical
textiles sector. Standards for technical textiles are especially vital due to their
critical applications in infrastructure, life-saving applications, personal
protection material, etc. Indian standards that align with international
standards for products manufactured and used in India will improve the
marketability of the products, and will also enable manufactures to envisage
efficient production processes that will improve profit margins.
The development of standards is an ongoing and multi-phase process that

requires monitoring, prioritizing and formulating standards for industry:
Identification and formulation of standards are among

Identification the most important activities of all COEs for Technical
of Standards Textiles industry. All COEs have initiated the process for
identifying existing and required standards for the
products that correspond with their respective
segments. Though Bureau of Indian Standards (BIS) is
entrusted with the responsibility of publishing
standards, the relevant COEs for Technical Textiles
prepare the initial drafts of the proposed standards.
Once recognized by BIS, the draft standards are

circulated to industry, users and academicians for
modifications towards final entrusted draft.
Bureau of Indian Standards (BIS) is the empowered

Government organization in the country for notifying standards. In
Interventions order to expedite the process of standards' notification,
Office of Textile Commissioner constituted Committees
for Standards for each of the eight Centers of
Excellence(COEs), viz Geotex, Agrotex, Meditex,
41 Investor Guide
Protex, Composites, Non wovens, Indutex and Sportex.
With the directors of the COEs convening their
respective committees, these committees formulate
the draft standards in their respective segment, which
are forwarded to BIS for further action.
These committees encourage and invite participation

from industry stakeholders in the development of
standards in the technical textiles industry. Interested
entrepreneurs, manufacturers of technical textiles and
other stakeholders can participate in the process of
standards formulation by suggesting the products for
which standards are required and helping the
committee in drafting the standards. Interested
companies can send their requests and proposals to
Office of Textile Commissioner for participation in the
standards committee.
The Standards Committee formed at the Office of

Standard Textiles Commissioner, Ministry of Textiles, Government
Notification of India formulates drafts standards and submits the
same to BIS from time to time. Many of the standards
proposed and formulated by the Standards Committee
have been notified and circulated by BIS in the recent
past. Standards recently notified by BIS in last three
quarters are as under15:
15
For more details on Standards, please refer to our publication “Compendium on Standards” uploaded
on http://technotex.gov.in/
42 Investor Guide
S. No Standards number Title
1. IS 16008:2012 Agro Textiles - Shade Nets for Agriculture
and Horticulture Purposes
Specification:
2. IS 15758 (Part3): 2007 Protective clothing Part 3 Resistance of
materials to penetration by liquids
3. IS 15891 (Part 1): 2011 Test method for non-wovens - Part 1
Determination of mass per unit area
Determination of thickness
Determination of tensile strength and
elongation
Determination of tear resistance
7. IS 15891 (Part 6) : 2012 Test Methods for non-wovens - Part 6
Absorption
8. IS 15891 (Part 7) : 2012 Test Methods for Nonwovens Part 7
Determination of Bending Length
9. IS 15891 (Part 8): 2012 Test Methods for Nonwovens Part 8
Determination of Liquid Strike - Through
Time (Simulated Urine)
10. IS 15891 (Part 9): 2012 Test Methods for Non-wovens Part 9
Determination of Drapability including
Coefficient
Recognizing the technical and economically sensitive

Proposed
usage of technical textiles, Ministry of Textiles,
government
Government of India has approved a scheme with total
initiatives
outlay of US$ 0.5 million in 12th FYP to support BIS in
hiring consultants to assist in standard formulation and
notification for technical textile products. This initiative
will standardize manufacture of technical textile
products in India and enable product quality equivalent
to leading international products.
43 Investor Guide
Standards are the first step towards ensuring regulatory
Regulating use of technical textile products. The establishment of
Standards standards for key technical textile products will provide
Indian authorities a foothold in moving towards a regime
of mandatory usage regulation. The user industry, which
is largely dependent on imports for such products, will
also be able to ensure the quality of manufactured
products. This will create a pull for technical textile
products and lead to the overall development of the
sector.
The strong enforcement of regulated standards will

unleash several opportunities in the technical textiles
industr y that will provide mutual benefits to
stakeholders, such as:
• Trade facilitation
• Support in technical aspects of societal and
environmental policies, which will also contribute to
sustainable development
• Offer the same level of consumer protection across
mature and evolving economies
• Allow products to be supplied and used across
different markets, thus enhancing the market
access opportunities for small enterprises
• Harness and disseminate new and advanced state-
of-the-art technology and innovative practices
• Provide tools for assessing conformity and for
enhancing confidence in products, systems,
processes, services or personnel
44 Investor Guide
4
POLICY FRAMEWORK
4 Policy framework
The Government of India has extended a host of policies and incentives to

the technical textile industry to encourage growth in the sector. These
incentives are provided by Central Government as well as by some
progressive states anchoring the textile sector.
India offers great economic

Mr Sujit Gulati
Joint Secretary, Ministry of Textiles
opportunities for global
Government of India investors…
India is a country that presents itself as having the highest Centre of Excellences; providing conducive business
growth rate in Technical Textiles sector. environment; awareness; training; empanelling
consultants and supporting industry to increase
For any global investor, India represents not only an
indigenous development, etc.
economic opportunity from the perspective of a huge
domestic market, but also as a hub for manufacturing for During 12th Five Year Plan, Government has planned very
international demand. Many domestic and multinational focused initiatives related to sector growth and
companies have found that to be the case in the recent development, making India the first most favored
past. India’s strength in attracting investment is primarily a destination for investments.
result of offering a level playing field for domestic and
I welcome all potential investors to India to become a part
international investors.
of Technical Textiles growth story and “If you’re not here,
The Government has been promoting Technical Textiles you might miss a great opportunity”.
Sector, through many ways such as establishment of
4.1 Government policies /schemes for promotion of

Technical Textiles
Ongoing Schemes
a. Technology Mission On Technical Textiles (TMTT):
Aim: Improvement of basic infrastructure in terms of testing facilities, lack of

market development support, skilled manpower, R&D, improved regulatory
measures, preparation of specifications and standards for technical textiles,
etc.
46 Investor Guide
Main components of the scheme: To attain the desired aim, Government has
launched TMTT with two mini-missions for a period of five years (from 2010-
11 to 2014-15) with a fund outlay of US$ 36.36 million, as under:
I. Mini Mission-I (Financial outlay US$ 28.36 million):

• Upgrade of existing four COEs: The existing COEs will be upgraded in
line with new COEs, i.e. with incremental facilities like incubation
centres and development of prototypes and provision for appointment
of consultants. (Fund allocation US$ 10.18 million)
• Setting up of four new COEs in Composites, Non-Wovens, Indutex
and Sportex (Fund allocation US$ 18.18 million)
II. Mini Mission-II (Financial outlay US$ 4 million)

• Support for Business Start Up (Fund allocation US$ 0.55 million)
• Fund support for organizing workshops/ seminar (Fund allocation US$
0.91 million)
• Support for Contract Research (Fund allocation US$ 2.00 million)
• Market development support for sale to the institutional buyers (Fund
allocation US$ 2.73 million)
• Identification of regulations required for promotion of technical textiles
(Fund allocation US$ 0.91 million)
• Support for domestic & export market development of technical
textiles (Fund allocation US$ 0.91 million)
Target and expected outcomes:
I. Mini- Mission I:
• Setting up of 4 COEs in the field of Non woven, Composites, Indutex
& Sportex
• Upgradation of existing 4 COEs covered under SGDTT
II. Mini- Mission II:

• 30 business start up projects
47 Investor Guide
• 52 workshops to sensitise stakeholders
• Social compliance through standardization regulatory measures: in
segments, viz. Geotex, Agrotex, Meditex, Protex
• Market development support through 30 buyer seller meetings
• 50 units to be assisted under Market development support for export
sales
• Fund support for 20 contract research projects
Performance of the scheme under 11th Five Year Plan

• 4 Centres of Excellence (COEs) for Non-Wovens, Indutex; Composites
and Sportex were established
• 4 COEs for Geotex, Agrotex, Protex and Meditex were upgraded as a
one stop shop for Technical Textiles
• More than 24 awareness programs have been organized in association
FICCI,CII, ICC, COEs, ROs etc
• More than 10 buyer seller meets (BSM) have been organized
• More than 26 companies have received approval from Office of Textile
Commissioner under Market development Support for export sales
• 9 proposals have been registered with Office of Textile Commissioner
under Contract Research component, which are under screening and
evaluation
• 5 consultants have been empanelled to provide business start-up
support to the industry
b. Technology Upgradation Fund Scheme (TUFS)
All technical textile machinery is covered under the Technology Upgradation

Fund Scheme (TUFS). In the modified TUFS applicable from 01-04-2007,
specified technical textile machinery has been provided with additional
benefit in terms of 10% capital subsidy in addition to 5% interest
reimbursement.
c. Concessional custom duty for specific Technical Textile Machinery

Major machinery required for technical textiles has been placed in the
48 Investor Guide
concessional custom duty list of 5% of list 46, Notification No. 21/2002-CUS
of Customs Tariff.
d. Focus Product Scheme (FPS) for Technical Textiles
The objective of this scheme is to incentivize export of products that have

high export intensity or employment potential in order to offset infrastructure
inefficiencies and other associated costs involved in marketing these
products. Exports of notified products to all countries (including SEZ units)
shall be entitled for Duty Credit scrip equivalent to 2 % of FOB value of
exports (in free foreign exchange).
As per DGFT's Policy Circular No. 42 (RE-2010)/2009-14 dated 21 October

2011, there are 33 Technical textile products that are allowed for FPS benefits
under this scheme. The details of technical textile products covered under
the scheme are given at Annexure – I.
e. Other Government initiatives

a) Under the Scheme for Integrated Textile Parks (SITP), the Government
provides assistance for creation of infrastructure in the parks to the
extent of 40% limited to US$ 8.82 million.
b) Under Integrated Skill Development Scheme (ISDS), it is proposed to
train 22,000 personnel in technical textile sector during the year 2010-
11 & 2011-12.
c) FDI is permitted through automatic route without any limit on the
extent of foreign ownership for in-bound investments in the textile
sector. Thus, there is no restriction on any amount of FDI, with or
without local partners. Government incentives are equally applicable
to FDI units.
Proposed schemes during 12th Five Year Plan

For the 12th FYP, five new Schemes have been proposed by the Ministry
with focus as under:
a. Scheme for Usage of Geotextiles in North Eastern Region (Fund

allocation – US$ 90.91 million (INR 500 Crs)
Aim: The aim of the scheme is to promote and utilize Geotextiles in
49 Investor Guide
development of the infrastructure in the NE states by providing
technological and financial support for meeting additional costs, if any,
due to the usage of Geotextiles in existing or new projects in road, hill
and slope protection, water reservoirs and river bank erosion control.
Main components of the scheme: It is proposed that in the project period
(5 years), roads in the NE may be constructed with Geotextiles. Similarly,
vulnerable river banks may be protected by Geotextiles, hill
slope/embankment slope, water reservoirs spread over the NE region
may be taken up for stabilization with Geotextiles. The Projects would be
identified in consultation with the State-Governments & concerned
Stakeholder Agencies. The funding under this scheme will be undertaken
for 2 major components:
i. Application of geotextiles solutions including onsite installation (US$

77.64 million)
ii. Sensitization activities, market studies, on-site testing, training and

capacity building, etc. (US$ 11.45 million)

• Increased consumption of Geotextile products in the NE region
• Expansion of the sustainable market of geo-textiles in hill/ soil
protection, river bank erosion control, water reservoir solutions and
road construction in NE Region of India.
• Awareness on use of quality certified Geotextile products in the NE
region
• Study on the performance of various types of geo-textiles through
field trials complemented by laboratory tests, and simulation
modelling, development of specifications and design methodologies
for field application in the areas of soil erosion control (river bank
protection and hill slope management), water reservoir and road
construction
• Cost-benefit analysis, development of capacities amongst the State
Governments (& other agencies), and dissemination of project results
to the end users and the stakeholders
50 Investor Guide
b. Scheme for usage of agro textiles in North Eastern Region (Fund
allocation – US$ 10 million (INR 55 Crs))
Aim: The aim is to utilize Agrotextiles in improving the horticulture and
floricultural produce of the NE states. With increasing acceptability of
Agrotextiles, entrepreneurship in the area of agrotextiles production in
the country will get an impetus. The growth of usage of Agrotextile
products in the country will thus benefit both agriculturists as well as
textile entrepreneurs in the country.
Main components of the scheme: It is proposed that in the project
period (5 years), Agrotextiles will be utilized to improve the horticulture
and floricultural produce of the Northeast states by providing
technological and financial support for establishing the demonstration
centres and disburse Agrotextile-Kit with overall fund outlay of US$ 10
million.
The proposed scheme's project targets will be with respect to

following two components:
i. Creating awareness, setting –up of Demonstration Centre and
developing capacities
ii. Provide/disburse Agrotextile-Kit in the NER states

• Increased consumption of Agrotextile products in the country and
boosting Agrotextiles production and investment synergies
• Improved yield of horticulture and floriculture produce from the North-
East region of the country in terms of Quantity as well as Quality of
produce
• Awareness on use of quality certified agrotextile products in the
country
• Demonstration centers depicting the benefit of usage of Agrotextile
products suitable for the region
• Study on the performance of various types of agrotextiles laboratory
tests and simulation modeling for their influence on control of
environmental factors like soil, temperature, heat and light and also
the plant growth
51 Investor Guide
• Cost-benefit analysis to the cultivators on usage of these products and
develop Capacities amongst the State Governments and other
agriculture agencies
c. Scheme for strengthening of database and standards for technical textiles

(Fund allocation – US$ 1.86 million (INR 10.25 Crs)
Aim: The scheme is aimed at creating a repository of knowledge that will
facilitate effective policy decisions by the government and business
decisions by industry stakeholders.
Main components of the scheme:

Following are the objectives of each component of the scheme:
a) Component 1 - Baseline survey for Strengthening of database of
technical textile industry: The aims of the project are to identify the
market size, consumption, trade trends, number of units, type of
units, type of products produced, investment, turnover, employment
etc., in the fields of Technical Textiles in India.
b) Component 2 - Identification of HS codes for technical textile items: To
monitor and track trade trends in technical textile sector
c) Component 3 - Standards for technical textiles: To standardize
manufacture of technical textile products in India and enable product
quality equivalent to leading international products.
d) Component 4 - Export Market Intelligence: To build knowledge
repository pertaining to technical textile exports that will empower
Indian exporters in making informed decisions about the market
potential for their products across the globe.
e) Component 5 - Study to generate data on hospital-related infections:
To increase awareness of utility of disposable medical textiles, and
encourage consumption of medical textile products.
Target and expected outcomes: The scheme will result in creation of a
database and will provide knowledge that will help in taking policy
decisions at the Ministry level and business decisions by various
investors. Formulation of standards will help in developing
manufacturing, quality and usage guidelines and promote growth and
development of the industry.
52 Investor Guide
d. Special Incentive Package Scheme for speciality fibres (Estimated fund
requirement - US$ 36.36 million (INR 200 Crs))
Aim: For strengthening the raw material base for Indian technical textile
industry, a special incentive package to enable Indian / foreign companies
to set up manufacturing facilities for identified speciality fibres is
proposed with special incentives of upto 20% on capital expenditure.
e. Setting –Up of Revolving Funds for Providing Assistance to Entrepreneurs

for R & D (Estimated fund requirement – US$ 9.09 million (INR 50 Crs)
Aim: A collaborative programme of MOT could be launched in association
with Financing Agency like SIDBI to support the indigenization needs of
the technical textile industry for innovative technological development
4.2 State specific policies for promoting Technical Textiles

Several states in India have been proactive in promoting the technical
textiles sector in the country. States like Gujarat, Tamil Nadu, Maharashtra,
Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Punjab have
especially witnessed some success in this effort.
Contributing 25% to the national technical textile industry, Gujarat is a major

player in the national technical textile sector. Gujarat's nearly 900 technical
textile units are engaged in each of the 12 subsectors of technical textiles,
and the state is a key producer of commodity products for the technical
textile and downstream industries. Key players in the state's technical textile
industry include, Ginni Filaments Ltd, Ambika Polymer, Anjani Udyog Pvt Ltd,
Reliance Industries, Supreme Nonwovens Pvt Ltd, etc. The state also
houses several international firms, like Finnish firm Ahlstrom, American
Hygienics Corporation, and Austrian firm TenCate Geosynthetics.
Gujarat is also making significant progress in driving innovation in the

national technical textile sector. Several companies are developing unique
technical textile products, such as Sanrhea Technical Textile Ltd with the
production of nylon chafer cloth for tyres, Tuflex India with the production
gabious and geo-membranes, APCO industries and the production of fibre
glass battery separators, etc. Additionally, Gujarat is a leading manufacturer
in the textiles, automobiles, chemical, metallic, and food products, each of
which consumes several of the various technical textile segments. Several of
53 Investor Guide
the state's units are also key suppliers to India's defence sector; Digjam
Mills, Jamnagar provides fire-resistant fabric, while Kusumgar Supported
Units, Advance Multitech, and Valley Valvette supply several varieties of
coated fabrics. With a manufacturing sector that drives over 27% of its
economy, the demand and consumption of technical textiles in the state is
among the highest in the country.
Tamil Nadu, in turn, is also a fast-growing epicenter of technical textiles in

the Indian peninsula. The state is one of the leading producers of
agrotextiles, medical technical textiles, sport technical textiles, nonwovens.
Coimbatore is also home to one of the country's eight Centers of Excellence
for technical textiles, COE: Meditex (SITRA), which specializes in medical
technical textiles. Furthermore, the state's investor-friendly environment has
enabled the development of textile parks dedicated exclusively to technical
textiles. The Government of Tamil Nadu approved the establishment of US$
21.30 million technical textile park in Pallavada, which is expected to
commence production in 2013. Furthermore, a 200-acre US$ 27.30 million
technical textile zone was planned to be established in Tirupur, Tamil Nadu in
2008.
Maharashtra is providing significant stimulus to the domestic technical

textiles industry. Maharashtra is a key producer of agrotextiles, woven
technical textiles, ropes and cordages, Indutex, and coir fibre. Key industries
located in Maharashtra include Malmo Exim Ltd, Kwality Nets, B&V Agro,
etc. Significantly, the state is also driving the research and development in
the national sector by hosting four of the country's eight Centers of
Excellence on technical textiles, COE: Geotex (BTRA), COE: Agrotex
(SASMIRA), COE: Non-wovens (DKTE), and, COE: Sportex (WRA).
The state's technical textile sector has also attracted significant investment
interest. The state is developing its first technical textiles park in Ichalkaranji,
which hosts a large number of stakeholders in the entire textile value chain,
with an investment of US$ 20 million. Furthermore, the manufacturing
conglomerate, Jindal Group, recently announced plans to establish a
technical textile unit with an investment of US$ 272.30 million in Nashik; the
unit will produce textiles related to automobile, sports, security, medical and
fire-fighting equipment
Karnataka is a growing player in the Indian technical textiles sector.

Karnataka's technical textiles sector attracted investments of US$ 104
54 Investor Guide
million between 2008 and 2011, and has targeted additional investments of
US$ 154 million in the sector between 2011-2012 and 2012-13. During the
state's Global Investor Meet 2012, held from June 6-8, 2012, the state
attracted US$ 891 million in investments in its textile sector alone; these
investments included proposals for the establishment of two technical
textile mega projects for US$ 60 million and US$ 18.2 million in Hassan SEZ
and Bellary, respectively. Additionally, the state will also promote technical
textiles as a focus sector in its new industry-friendly textiles sector, which is
scheduled to be launched in January 2013.
Rajasthan is yet another state charting new frontiers in the national

technical textiles sector. The state is a renowned leader in the global textiles
sector, and is now encouraging the growth of technical textiles to advance
its leadership throughout the textile value chain. Bhilwara has especially
emerged as one of the largest manufacturing centres for viscose-polyester
textiles. Rajasthan State Industrial Development and Investment Corporation
Ltd (RIICO) even organized a seminar in September 2010 to highlight the
opportunities for Rajasthan to become a national and global leader in the
technical textiles domain.
Andhra Pradesh is a leading producer in the agrotextiles sector, and is a

leading consumer in Protex and Mobiltex. A hub for the national textile,
aerospace and defense industries, the state is an especially important
consumer of Indutex and Protex products.
Punjab is also proving to be a promising market for Indian Sportex

manufacturers. The state hosts amongst India's largest sports industries,
and is a key supplier to the Indian Raffia, ropes and cordages industries.
Thus, with significant, growing demand for sport technical textiles, and ready
supply of downstream industries in the technical textile value chain, the
state demonstrates significant potential for the development of a vibrant and
thriving industry for sports technical textiles.
Madhya Pradesh is another state that is demonstrating promising growth in

the technical textiles sector. The positive industrial environment created by
the state through numerous initiatives and a stable government, good
infrastructure and connectivity with all major parts of the country make it
very conducive for the technical textiles industry.
55 Investor Guide
The above eight states' industrial, MSME, and textile policies have been
instrumental in driving the growth of the technical textiles industry not just
locally, but throughout the country. Specific incentives of these state's
policies have been included below as a reference point both for investors
looking to realize and execute their interests in India's technical textiles
sector, but also for administrators and policy-makers of other states looking
to promote the local docile technical textiles sector.
Incentives\ GJ TN MH KA AP RJ PB MP
States
Infrastructure
Land ?
??????
Electricity/Power ?
???
???
Fiscal
Stamp duty
exemptions
?
???
?
Interest subsidy ??? ?
Entry tax
exemptions
???
Venture capital
funding
??
VAT/CST/SGST
exemptions ??
???
Capital
investment ?
???
??
subsidies
Research and Development
Patent and
quality ?
???
??
certification
Technology
development and ?
??????
upgrade
Human Resource Development
Skill development ? ?
???
Employment ????
Trade
Export subsidies ??
Import subsidies ?
Other
Sick unit
rehabilitation
??
Energy and water
conservation
?
???
?
56 Investor Guide
A. Gujarat
The state's Industrial Policy – 2009 aims to achieve holistic development
across the industrial and social realms by facilitating investments, generating
and enhancing employment, and adhering to high-quality standards. The
state is placing special emphasis on the development of Special Investment
Regions that seek to converge the state's industrial, social, and urban
infrastructure. The Delhi-Mumbai Industrial Corridor (DMIC) has witnessed
significant activity in this regard, while the State Government is planning to
develop Ahmedabad-Dholera Special Investment Region, Petroleum,
Chemical and Petrochemical Investment Region, and Gujarat International
Finance Tech City, along with other knowledge corridors and integrated
townships through both Public-Private Partnership and Viability Gap Funding
models.
The government is also focusing on driving growth of megaprojects in focus

sectors, like auto and auto components, ship building and ship repairs, semi-
conductor fabrication and nanotechnology application, and MROs for
aircrafts. The state is promoting a cluster-based approach through scheme
assistance for the development of industrial clusters for MSMEs. The
scheme not only emphasize soft interventions like capacity-building through
marketing, quality improvement and technology upgrade initiatives, but also
focuses on interventions, like development of common infrastructure and
facilities, like incubation centers, ITI extension centers, CFCs, and other
need-based facilities. The state and central governments will extend financial
assistance to cluster development for a period of three to five years, along
with providing assistance to nodal institutions and experts, constitute a
Cluster Advisory Initiative (CAI), and provide partial financial assistance for
Last Mile Connectivity.
Government of Gujarat also intends to provide special thrust to the textiles

and apparels sectors to enable the state's industry to achieve global reach
and recognition in international markets.
• Strengthen the value chain

• Build expertise in the entire value chain to foster comprehensive
and inclusive development
57 Investor Guide
• Create forward and backward linkages to encourage farmers to
grow the necessary raw materials
• Engage professional designers to transform the raw material into
finished fabric and produce textiles and garments that align with
demands in domestic and international markets.
• Identify and fill missing links in value chain: Facilitate all the
necessary steps, such as increased R&D in the area of textile/fabric
development, design development, adoption of new production
techniques, strategic tie ups with premier design institutes, etc
• Offer credit-linked financial support through interest subsidies to
spinning, weaving, knitting, apparel and machine carpeting sectors
• Support technical textile manufacturing activity to make Gujarat a hub for
production of technical textiles
• Support technology acquisition and upgrade
• Support establishment of Ginning/Weaving/Knitting/Technical
Textile/Apparel Park under GIDB structured scheme in PPP mode with
Viability Gap Funding. Government-owned land will continue being
owned by a public entity.
Specific incentives for MSMEs under the state's, “Scheme for assistance to
Micro, Small and Medium Enterprises,” under the aegis of the Gujarat
Industrial Policy 2009 are highlighted below. Assistance will be given only
once under each category in a five-year period unless otherwise specified in
the specific category of incentives. For the same investment, assistance or
benefit can be availed under only one category. The unit that has received
assistance under this GR will not be entitled to avail benefit of any other
State Government Scheme, unless specifically specified otherwise
58 Investor Guide
Gujarat MSME Scheme
Infrastructure Land acquisition
• Large units producing raw materials and promoting
auxiliary MSME units to be encouraged to develop
industrial parks for accommodating minimum 20
units
• Assistance of 20% of infrastructure cost excluding
land cost subject to maximum US$ 0.18 million
• Facilitation in purchase of land for the industrial
park
Fiscal Interest subsidy

Eligibility
• All MSMEs will be eligible as per definition of
MSME for setting up a new unit, or for expanding,
diversifying, or modernizing an existing unit. The
plant and machinery to be installed should be new
with modern state of the art technology
• Units availing term loan from any bank or a
financial institution approved by RBI within one
year of the loan disbursement, or by the end of the
first instalment, will be eligible for benefits under
this scheme
• Unit will have to observe pollution control
measures as prescribed by GPCB or other
competent authority
• Unit will have to remain in production for 5 years
from the date of commercial production
• Unit will have to furnish information regarding
production, employment, etc, whenever asked by
the Government
• Unit will have to employ at least 85% of the total
employment and 60% of supervisory and
managerial employment from local persons
59 Investor Guide
Gujarat MSME Scheme
• Sick units will not get benefits under this category
Benefit
• Interest Subsidy of 7% for micro enterprises and
of 5% for small and medium enterprises
• 1% additional interest subsidy to youth having less
than 35 years of age in case of first project.
Woman entrepreneurs will be accorded priority
• Maximum amount of interest subsidy will be US$
0.05 million per annum, for a period of five years
• Interest subsidies for units availing term loan will
be paid to the Bank/FI with intimation to the unit
• Disbursement will start only after the unit starts
commercial operation
Breach of eligibility:
• If the unit becomes defaulter in repayment to a
bank or financial institution, such default period will
be deducted from the period of five years
• If the unit defaults in paying any Government dues,
it will not get assistance under this category
Venture Capital Funding
• Total funding of US$ 1.82 millionwill be earmarked
during the operative period of the scheme to
promote venture capital funding for MSMEs and
projects that adopt innovative technologies, like
Technical Textiles, NanoTechnology,Information
Technology, Bio-Technology, etc
• The Government will provide funds to financial
institutions and banks that have the necessary
expertise in operating Venture Capital Funds
Research and Quality certification

development • Assistance will be granted to the eligible MSMEs
for maximum 3 quality certifications, at the rate of
60 Investor Guide
Gujarat MSME Scheme
50% of cost of quality certification with an overall
ceiling of US$ 0.01 million in 5 years. The cost for
certificate will include:
• Fees charged by certification agency(excluding
travel, hotel and surveillance charges)
• Cost of testing equipments as suggested by
BIS
• Calibration charges of equipment
• Consulting fees and training charges (excluding
travel, hotel and surveillance charges)
Technology acquisition fund
• Assist ance for acqusition of appropriate
technology in any form to a group of at least 10
MSMEs for a specific product / process will be
provided by way of 50% grant subject to a
maximum of US$ 0.18 million er technology
including royalty payments for first two years
Suppot to R&D Institutions
• Need-ased support will be provided to R&D
institutions set up with the State Government
support, including setting up of new R&D
institution, Testing facilities, incubation center etc.
The assistance will be upto 60% of the project ost
excluding land cost & building cost
• Assistance for Contract/ Sponsored research work
from any industrial unit / Industry Association to
recognized R&D Institution/ technical colleges
approved by AICTE, will be considered @ 50% of
project cost, excludig cost of land and building,
subject to maximum US$ 0.09 million
Patent assistance
• Assistance of 50% of necessary expenditure for
obtaining domestic patents by any industrial unit or
institution subject to maximum of US$ 18,181
61 Investor Guide
Gujarat MSME Scheme
• Quantum of assistance can be enhanced to US$
0.05 million for international patents by a company
• Fees paid to patent attorney and patent service
centre will be eligible (excluding travel, hotel
charges)
• Maximum five patents per unit over a 5 years
period will be eligible
Human Skill development

resource • 50% of fees, subject to maximum US$ 90.91 per
development person for a minimum one week duration training
of skill upgradation in MSMEs in a programme
conducted in institutions suggested by an Anchor
Institute or specialized institution in specific sector
will be reimbursed. The minimum batch size for
such training assistance should be 25 trainees
Sick unit • Subsidy of 50% on cost of diagnostic study by

rehabilitation t e ch n i c a l i n s t i t u t i o n i n i t i a t e d t h r o u g h
FI/Bank/Government for maximum of US$ 1,88.82
• Registered Experts in the field of technology,
marketing and finance may be engaged to advise
sick units. 50% fees (maximum US$ 1,88.82 per
unit) will be reimbursed on implementing
suggestions given by such registered expert
• Interest subsidy @ 5% per annum limited to US$
0.02 million per year for three years on additional
finance for rehabilitation, disbursed by Bank or
financial institution
• One Time Settlement (OTS) on a graded scale for
Government dues as well as dues towards
Government/Corporations/ Boads for which a
separate Government Resolution (GR) will be
introduced
62 Investor Guide
Gujarat MSME Scheme
• Other units taking over a sick unit for rehabilitation
will be eligible for assistance as above
Other Energy and water conservation

• 50% cost of energy and water audit conducted in
a unit by a recognized institution/ consultant
subject to a limit of US$ 454.55 will be reimbursed
to the MSME
• Group of units/cluster will be given priority
• In addition, assistance of 20% of cost of
equipment subject to maximum US$ 0.02 million
per project will be considered during a period of
five years
Market development support
• Assistance to MSMEs for packaging design from
recognized institutions at 50% of the cost subject
to maximum US$ 3,636.36 once in a period of five
years
• Assistance to MSME units for participation in
International Trade Fairs outside India @ 50% of
total rent, literature and display material subject to
maximum US$ 9,090.91 once in one country in
five years
• The unit should not participate in an individual
capacity, but only as a part of the Industry
Association that is participating in such trade fairs.
The assist ance would be by way of
reimbursement.
• Assistance to Industry Associations @ 50% of
total rent subject to maximum US$ 0.02 million for
participation in international trade fair as Gujarat
Pavilion outside India for participation of minimum
5 units in a form of reimbursement
• Viability gap support to Industry Associations for
organizing national seminars/exhibitions in Gujarat,
63 Investor Guide
Gujarat MSME Scheme
subject to maximum US$ 7,272.73 and for
organising international seminar/exhibition in
Gujarat subject to maximum US$ 14,545.45
• Assistance for setting up of Convention
Centre/Trade centre by Industry Associations
@50% of project cost upto US$ 0.91 million
excluding land cost once in a period of 5 years
Support for vendor development
• Support for vendor development on the line of PPP
model wherein parent unit is to contribute
minimum 5% for prototype/new product
development besides technical support and
commitment for procurement guarantee for 3
years.
• Vendor unit will be eligible for interest subsidy as
per the present scheme.
• Parent unit will be supported to develop industrial
parks with assistance @ 20% of infrastructure cost
excluding land cost subject to maximum US$ 0.18
million
• New or existing medium and large units can be
considered as parent units to support development
of a minimum of ten vendor units for new product
or prototype development for eligibility.
Cluster development in PPP mode
• Anchor units, nodal institutions and/or industry
associations will be associated with a PPP-based
programme for cluster development
• Comprehensive support to strengthen cluster
units in a programme covering product design and
technology, quality improvement, energy & water
conservation, common branding and marketing
facilities, hiring of an expert /cluster development
agent, setting up of demonstration plant, common
facilities, incubation centre, CFC, ITI extension
centre and other need based facilities
64 Investor Guide
Gujarat MSME Scheme
• Assistance of 80% (including assistance from
Government of India) in the proposed cost of
programme with a ceiling of US$ 1.82 million per
cluster for a period of 3 to 5 years
• Assistance to nodal institutions/hiring of experts
should not exceed 3% of project cost.
• Cluster Advisory Institution (CAI) to be constituted.
• Clusters will be eligible for partial financial
assistance as available under the Scheme of
Critical Infrastructure.
• Assistance will be subject to preparation, by the
project owners, of a Comprehensive Development
Plan of the cluster for 5 years
Awards to best MSMEs
• Separate awards to be given for Micro, Small and
Medium category
• Three awards to be awarded in each category.
• Growth in production and profit
• Quality and Environment improvement measures.
• Innovation in technology for new product or
process development
• Award in the form of US$ 1,818.18, cash and
appreciation letter
• Awardees to be given priority in participation of
international seminars and incentives under the
scheme
• Independent Credit Rating agency to be appointed
to select the best performing MSMEs in the above
categories
• Nominations to be encouraged from industries
associations
Source: Scheme for assistance to Micro, Small and Medium Enterprises (MSME), Resolution
No. MSM/102009/5928/I, Industries and Mines Department, Government of Gujarat
65 Investor Guide
Overall, the industrial policy outlines the state's roadmap for promoting the
development of the technical textiles sector. The state's textile policy,
launched in 2012, provides more specific guidelines for achieving this growth
and development. The textile policy announced a new scheme for technical
textiles known as, “Credit-linked Interest Subsidy in Technical Textiles.” The
scheme addresses 13 sub-segments in technical textiles
• Agrotex
• Buildtex
• Clothtex
• Hometex
• Indutex
• Meditex
• Mobiltex
• Oekotex
• Packtex
• Protex
• Sportex
• Defensetech
• Any other products notified by Ministry of Textiles, Government of
India
Specific incentives for encouraging the growth of the state's technical textile
industry under the textile policy include:
Gujarat Textile Policy

Fiscal Credit-linked interest subsidy
• Technical textiles-focused enterprises that have
received term loans from financial institutions or a
bank recognized by the Reserve Bank of India, and
whose loans are disbursed between 2012 and 2017,
are eligible for applying for an interest subsidy from
the Government of Gujarat within the first year of the
loan disbursement. Subsidy will be available to new
and existing enterprises expanding, modernizing, or
66 Investor Guide
diversifying in the field of technical textiles through
investments in new and modern plant and machinery,
as specified under the TUF scheme of Government of
India.
• Maximum interest subsidy of 6% p.a. will be offered
in addition to any other incentives available from
Government of India. The subsidy will be available only
on the interest levied by the financial institution for a
period of five years, or for the loan repayment period,
whichever is earlier.
• Enterprises that have acquired second-hand imported
machinery with vintage of 10 years, and with a
residual life of a minimum of 10 years, duly certified by
a competent authority like Chartered Engineer or
Chartered Accountant, will be considered eligible for
support under the scheme to the extent of 60% of the
acquisition value of imported machinery. Acquisition
value of the second-hand machinery shall be less than
50% of the value of newly-imported machinery.
Support against the second-hand machinery will be
given only after the successful operation of the
machinery for a period of 6 months.
• The interest subsidy will be given to the enterprise
that pays regular instalments and interest to the
financial institutions. A defaulting enterprise will not
get interest subsidies for the default period, which will
be deducted from the five-year period. Penal interest
or other charges will not be reimbursed.
Other Assistance for energy conservation, water conservation

and environmental compliance to existing units
• Applicable to units over three years old, the scheme
provides the following benefits once in two years
during the operating period of the scheme:
• Up to 50% to a maximum of US$ 909.09 for
energy audit, water audit, and environmental
compliance
67 Investor Guide
• Up to 20% of cost of equipment to a maximum of
US$ 0.04 million
Assistance for technology acquisition and upgrade
• Applicable to enterprises acquiring technology for
specialized application for the first time in India. The
acquisition of technology can be in any form, including
purchase of drawing and design and technology
development through engagement of experts, R&D
institutions, and/or a technical consultancy firm. Mere
import of technology will not be considered
technology acquisition.
• E x i s t i n g G u j a r a t - b a s e d t e x t i l e m a ch i n e r y
manufacturers can also avail the benefit of technology
collaborations from abroad.
Support for establishing textile and apparel park
Eligibility
• Any industry association, industrial house, cooperative
society, or institution registered under the Societies
Act, Partnership Act, or the Companies Act or any
government body like GIDC shall be eligible to avail
assistance under the scheme as the developer of the
park.
• The part must have provision for the location of
minimum 20 manufacturing and/or service enterprises
(maximum 25% of service and allied enterprises)
• Only the expenditure incurred for development of
infrastructure within the park area shall be considered
for assistance. Cost of infrastructure facilities shall
include development of internal roads, power lines,
communication facilities, water distribution line, water
augmentation facilities, sewage and drainage lines,
effluent treatment and disposal facilities, storage
facilities, common and other facilities centers, as
68 Investor Guide
required in industrial parks.
• The promoter/developer shall commit to hold at least
20% equity in the project and shall operate and
maintain the park.
• Expansion, modification, or modernization of existing
industrial park will be ineligible for benefits under the
scheme.
Benefits
• The park will be provided financial assistance of up to
50% to a maximum limit of US$ 1,818 million of the
total project cost for establishment of common
infrastructure facilities, including the cost of land
• Developers of such parks will also be eligible for one-
time stamp duty exemptions on purchase of land
required for the new park, along with the first
purchasers of an individual unit within these parks.
Stamp duty exemption certificates will be issued after
approval of the SLAC
• The developer of the park availing incentives under
this scheme will not be eligible to avail incentives
under any other schemes of the State Government,
unless specified otherwise. However, the enterprises
established in the park will be eligible for incentives
under separate schemes of the State Government
Breach of eligibility
• The construction of infrastructure facilities of the
sanctioned project should be completed within a
period of 3 years from the date of approval of the
project by State-level Approval Committee (SLAC).
• Failure to complete the construction of the
infrastructure within a 3-year period will result in the
recovery of the stamp duty and will render the
project ineligible for financial assistance
69 Investor Guide
• Promoters and developers will suffer the recovery of
benefits sanctioned, disbursed, or reimbursed amount
as arrears of land revenue if found not maintaining and
operating the park.
Source: Gujarat Textile Policy, iNDEXTb
For further information, contact:

Industries and Mines Department, Government of Gujarat:
http://www.imd-gujarat.gov.in/index1.html
B. Tamil Nadu
The Industrial policy 2007 of Tamil Nadu envisions creating 2 million jobs by
2011, increasing the contribution of the manufacturing sector to GSDP,
substantially increase the state's exports, achieving a position of eminence
in innovation and high technology, and raising the competitiveness and
efficiency of Small and Medium Enterprises. The state plans to implement
the policy through a consultative mechanism, infrastructure development
(Public Private Partnership, water, railways, ports, roads), Industrial Parks and
Special Economic Zones, Human Resources and Skill Development, Energy
Efficiency and Technology Upgradation and Catalysing Innovation.
The state created a special task force on industrial development chaired by

Hon'ble Chief Minister to provide a forum to facilitate inputs from industry
for development of policies. Additionally, to ensure an adequate supply of
developed land for high-technology industries and startups, the State has
also identified a land bank of 10,000 acres for industrial parks to create
quality infrastructure facilities, including social infrastructure like skill
development centres, housing, business centres, restaurants, financial
services, schools and hospitals. 20% of the area in industrial parks and SEZs
promoted by State Industries Promotion Corporation of Tamil Nadu Ltd
(SIPCOT) and Tamil Nadu Industrial Development Corporation (TIDCO) will be
reserved for SMEs, including SME vendors to major industries in the same
parks.
Furthermore, TIDCO is also encouraging Public-Private Partnership projects

to facilitate investments into industrial infrastructure, like roads, industrial
70 Investor Guide
parks, and Special Economic Zones. Government of Tamil Nadu has already
initiated several steps to upgrade infrastructure facilities in all industrial
clusters, including water supply, power, communication facilities, roads,
railways, etc. in order to improve the competitiveness of industries in the
State.
Incentives available under the Tamil Nadu Industrial Policy 2007 are
highlighted in the table below. Eligibility criteria for these incentives are as
under:
• New manufacturing facilities set up in any district other than Chennai,
Thiruvallur and Kanchipuram with an investment in eligible fixed assets
of over US$ 45.45 million in a period of 3 years would be eligible for a
structured package of incentives to be decided on a case-to-case
basis, with due weight to investment, employment and potential for
attracting further investment through vendors and ancillaries. In case
of Chennai, Thiruvallur and Kanchipuram districts, this minimum
investment will be US$ 63.64 million
• New manufacturing facilities set up by an existing company in a new
site or in an adjacent vacant site within existing facility for
manufacturing a product already being manufactured in the existing
unit or an entirely new product, would be treated as a new unit for the
purpose of incentives under the policy, subject to the production
volume/value in the older unit being preserved
• Expansion projects within the existing manufacturing facility of an
industry with an investment in eligible fixed assets of over US$ 45.45
million in a period of 3 years would be eligible for a structured package
of incentives to be decided on a case-to-case basis, subject to
preservation of existing production volume/value, in case of districts
other than Kanchipuram, Thiruvallur and Chennai. In case of Chennai,
Thiruvallur and Kanchipuram districts, this minimum investment will be
US$ 63.64 million
• Existing industrial units in existence in Tamil Nadu for over 10 years
will be given suitable extra benefits for expansion projects over and
above normal structured package of incentives, subject to investing
minimum levels of investment mentioned above
71 Investor Guide
• New or expansion manufacturing facilities with investments in eligible
fixed assets over US$ 272.73 million will be treated as super-mega
projects and eligible for incentives over and above the normal
structured package of incentives.
Tamil Nadu Industrial Policy

Infrastructure Stamp duty exemptions for Land
• There will be no stamp duty levied in respect of
transfer of lands acquired by Government or
alienated by Government to State Agencies or their
subsidiaries for promotion of industrial park
• Stamp duty exemption on lease or purchase of land
meant for industrial use to the extent of 50% would
be available for all manufacturing industries setting
up new or expansion units with an investment in
eligible fixed assets of more than US$ 0.91 million in
private industrial parks
• Manufacturing units setup in SIPCOT industrial parks
would be eligible for 50% exemption from stamp
duty on lease or sale of land meant for industrial use
as well as on lease of new ready built factory
buildings irrespective of location
Power
• A back-ended State Capital Subsidy and Electricity
tax exemption on power purchased from TNEB or
generated and consumed from captive sources
would be sanctioned for all manufacturing units,
based on employment and investment in eligible
fixed assets made within 3 years, irrespective of
location
• New units investing between US$ 0.91 million and
US$ 9.1 million and employing more than 100 direct
workers would be eligible for a capital subsidy of
US$ 0.05 million and electricity tax exemption for 2
years from the date of commercial production
72 Investor Guide
US$ 18.2 million and employing more than 200
direct workers would be eligible for a capital
subsidy of US$ 0.11 million and electricity tax
exemption for 3 years from the date of
commercial production
US$ 36.4 million and employing 300 direct workers
would be eligible for a capital subsidy of US$ 0.18
million and electricity tax exemption for 4 years
from the date of commercial production
• New and expanding units investing over US$ 36.4
million and employing more than 400 direct
workers would be eligible for a capital subsidy of
US$ 0.27 million and electricity tax exemption for
5 years from the date of commercial production
• Manufacturing units located within a SIPCOT
industrial park or SIPCOT SEZ will be provided an
additional 50% capital subsidy over and above the
eligible limit
Effluent Treatment Plants
• Dedicated Effluent Treatment Plants (ETP) and/or
Hazardous Treatment Storage and Disposal
Facilit y(HWTSDF) set up by individual
manufacturing units would be eligible for an
Environment Protection Infrastructure subsidy of
US$ 0.05 million or 25% of capital cost of setting
up such ETP/HWTSDF, whichever is less
Research and Patent and quality certification

Development • 50% of the cost of filing a patent or US$ 3,636,
whichever is less, would be provided to technology
innovators or stand alone R&D units or individuals
for innovations capable of industrial application.
The support will be available for filing the patent
73 Investor Guide
application in India or abroad, cost of registration
and first time maintenance fee of the granted
application
Technology development and upgrade
• Capital goods to be used in setting up hi-
technology R&D centres would be exempted from
entry tax and VAT would be zero rated. Such
capital goods shall not be used for commercial
production and be used exclusively for R&D
• Technology parks focused on R&D would be
treated on par with Information Technology Parks
for purpose of applicable incentives, including FSI
norms, etc
Source: The Industrial Policy 2007, Industries Department, Government of Tamil Nadu
Incentives available under the Tamil Nadu Micro, Small and Medium
Industries Policy 2008 are highlighted below:
Tamil Nadu MSME Policy

Infrastructure Land
• State Industries Promotion Corporation of Tamil
Nadu Ltd., (SIPCOT) will allot up to 20% land in all
new and expansion schemes undertaken by
SIPCOT to MSMEs to promote ancillarization. In
e s t a t e s d eve l o p e d by S m a l l I n d u s t r i e s
Development Corporation (SIDCO) in the XI Plan
period, up to 30% of the area will be reserved for
Micro Enterprises, with allotment not exceeding
15 cents
Fiscal Stamp duty exemptions

• Enterprises in SIDCO or Government developed
estates for Micro and Small Enterprises sectors
are entitled to 50% rebate on stamp duty and
registration at the time of original allotment, based
74 Investor Guide
on the transfer value fixed by SIDCO or
Government in respect of such estates. In respect
of Micro and Small Enterprises set up in
industrially backward areas, the 50% rebate on
stamp duty and registration would be
reimbursed after commencement of production
• Entrepreneurs in privately developed estates will
be entitled to 50% rebate on stamp duty and
registration at the time of original allotment based
on the guideline value
• Micro Manufacturing Enterprises will be exempted
from payment of stamp duty on mortgaged and
pledged documents.
Capital investment subsidy
• A back-ended interest subsidy at the rate of 3%
(subject to a maximum of US$ 18,181 per
enterprise over a period of five years) will be
extended on loans taken up to US$ 0.18 million by
Micro, Small and Medium Enterprises for
modernization by induction of well established
and improved technologies in specified sub-
sectors / products as listed in the guidelines on
Credit Linked Capital Subsidy Scheme (CLCSS)
Scheme of Government of India
Value-added tax exemptions
• All Micro Manufacturing Enterprises will be
entitled to a subsidy equal to the assessed Value
Added Tax (VAT) paid by them for the first six years
after commencement of production. The total
subsidy entitlement over the period would be upto
the value of investments made in plant and
machinery at the time of allotment of an
Entrepreneur Memorandum (EM) number (Part 2)
by the District Industries Centres
75 Investor Guide
Research and Technology development and upgrade
development • Government will provide support to Mini Tool
Room projects to be taken up by any Industrial
cluster /Association at the rate of 25% of the
project cost, subject to a ceiling of US$ 0.18
million in strategic locations based on demand.
• In addition the Government will also provide
support to establish Common Facility Centres to
be set up by Industrial clusters / Associations at
the rate of 25% of the project cost, subject to
a ceiling of US$ 0.18 million in strategic
locations, based on demand.
• Small developmental projects undertaken at the
behest of MSME Association by IIT-Madras,
Universities in the State including Deemed
Universities, Engineering Colleges, Polytechnics,
and Central Government Institutions of Excellence
in the State for evolving cleaner and / or energy
efficient or IT-enabled technologies for the Micro,
Small and Medium Manufacturing Sector will be
eligible to receive support of up to US$ 4,545 or
50% of the project cost, whichever is less. the
project should have the prior approval of the
Industries Commissioner and Director of
Industries and Commerce
• Technology Development Fund will also fund 50%
of the cost of the conduct of 100 operational
efficiency studies required by entrepreneurs of
micro manufacturing enterprises every year on a
first come first served basis
Patent and trade mark registration
• 50% of the cost of filing a patent or US$ 3,636.36,
whichever is less, would be provided as subsidy
to Micro, Small and Medium manufacturing
76 Investor Guide
enterprises having in-house or stand alone R
& D Laboratories for innovations capable of
industrial application. The support will be available
for filing the patent application in India or abroad,
cost of registration and first time maintenance fee
of the granted application
• Similarly 50% of the cost of application for
Trade Mark registration or US$ 454.55,
whichever is less, would be provided as
subsidy to Micro, Small and Medium
manufacturing enterprises for filing the
application for Trade Mark registration in India
or abroad, cost of registration and first time
maintenance fee of the granted application
Human Skill Development

resource • Reimbursement of up to 50% of the tuition
development fees of special short term courses run with prior
approval of the Industries Commissioner and
Director of Industries and Commerce by the
MSME Associations for the benefit of the
educated unemployed in collaboration with any
reputed institution in the State.
• Reimbursement of 50% of the tuition fees of
short term training organized by MSME
Associations to upgrade the skills of existing
employees of Micro, Small and Medium
manufacturing Enterprises.
Sick unit • The outstanding sales tax / VAT and the interest on
rehabilitation the same (as on the date of orders of the
Empowered Committee sanctioning the
package) may be converted into a soft loan.
The loan will be repayable from the start of
the fourth year onwards over four years on an
equated monthly instalment basis with an interest
77 Investor Guide
of 9%. There will however be no interest charged
for the first three years on the loan.
• Sanction an interest subsidy of 4% for two years
on rehabilitation/bridge loans upto US$ 0.03 million
advanced to micro and small enterprises as a part
of the rehabilitation package.
• Determining the outstanding interest on sale tax /
VAT, (as on the date of the order of the SLRC) and
recommending remission of the same by
Government in the case of a enterprise considered
non viable and incapable of being rehabilitated
within the band of concessions allowed by the
policy.
Other Marketing support

• Price preference of 15% will be extended for
purchase of goods of domestic Micro and Small
Enterprises as provided in the Tamil Nadu
Transparency in Tenders Act, 1998
• A grant of 50% of expenses incurred on hall rent
(subject to a ceiling of US$ 9,000 (Rs.5 lakhs) per
event in Chennai and US$ 1,818 per event in
Districts) will be sanctioned on reimbursement
basis for sponsoring of exhibitions by MSME
Associations
• A grant of 50% of the hall rent (with a ceiling of
US$ 9,091 per exhibition) will be sanctioned on
reimbursement basis for participation in exhibitions
in other States by MSME Associations of Tamil
Nadu
• MSME Development Organization will provide
funding support of up to 90% in respect of to and
fro air fare for participation by MSE Entrepreneurs
in overseas fairs / trade delegations. The scheme
78 Investor Guide
also provide for funding for producing publicity
material (upto 25% of costs)
• Support will be structured in project mode to
clusters of enterprises to market their products
under a common banner or brand.
• Price preference of 15% will be extended for
purchase of goods of domestic Micro and Small
Enterprises as provided in the Tamil Nadu
Transparency in Tenders Act, 1998
• Waiver of Earnest Money Deposit will continue for
Micro and Small Enterprises
• Scheme for setting up Sub-Contracting
Exchange (One time grant for procurement of
hardware and thereafter matching grant on
tapering basis at 50%, 30% and 10% of
running expenses, not exceeding US$ 2,272.73,
US$ 1,363.64 and US$ 454.55, respectively during
the initial three years, subject to a ceiling of US$
2,854.55 per exchange.
• MSME - Development Organisation by Micro
and Small Enterprises for sanction of
assistance under the ISO 9000/ISO 14001
Certification Reimbursement Scheme (Incentive
Schemes of Reimbursement of expenses for
acquiring Quality Management System (QMS)
ISO 9000 certification/environment management
(EMS) ISO 14001 certification to the extent of
75% or US$ 1,363, whichever is lower).
Source: Micro, Small and Medium Industries Policy 2008, MSME Department,
Government of Tamil Nadu

Industries Department, Govt of Tamil Nadu:
http://www.tn.gov.in/departments/industries.html
Handicrafts, Handloom, and Textile Department, Govt of Tamil Nadu:
http://www.tn.gov.in/departments/hhtk.html
79 Investor Guide
C. Maharashtra
The State's economic reforms emphasize structural changes and fiscal
incentives for the industrial promotion and balanced regional growth. This
has coincided with increasing global competition and rapid technological
changes, which pose new challenges for industry. The Industrial, Investment
and Infrastructure Policy 2006 therefore aims at ensuring sustainable
industrial growth through innovative initiatives for development of key
potential sectors and further improving the conducive industrial climate in
the State to provide the State's industries a global competitive edge.
The aforementioned policy has especially identified textiles as a thrust area

for the state. The state's comprehensive textile policy aims to create world-
class infrastructure, state-of-the-art technology and upgrade technology
skulls through appropriate training programs.
Specific incentives under industrial policy
Maharashtra Industrial Policy

Infrastructure Electricity duty exemption
• Eligible new units in C, D, and D+ areas and No-
Industry District(s) will be exempted from payment
of Electricity Duty for a period of 15 years. In other
parts of the State, 100% Export Oriented Units
(EOUs), Information Technology (IT) and Bio-
Technology (BT) units will also be exempted from
payment of Electricity Duty for a period of 10
years.
Taluka/Area Monetary ceiling Maximum period

Classification limit (US$) in years
A - -
B - -
C 18,181.82 4
D 36,363.64 5
D+ 45,454.55 6
No Industry District 63,636.36 7
80 Investor Guide
Fiscal Industrial promotion subsidy
• New SSI/MSI/LSI units: The quantum of subsidy
will be linked to the Fixed Capital Investment.
Payment of IPS every year will be equal to 25% of
any Relevant Taxes paid by the eligible unit to the
State or to any of its departments or agencies. The
quantum of benefit and period will be as follows:
Ceiling as % of fixed Number of years

Taluka/Area capital investment
Classification
SSI MSI/LSI SSI MSI/LSI
A - - - -
B 20 - 6 -
C 30 20 7 5
D 40 25 8 6
D+ 50 30 9 7
No Industry 60 35 10 8
District
• Expanding units: Existing SSI/MSI/LSI (including

IT/BT) units making additional investment to the
extent of 25% or more over the Gross Fixed
Capital investment, as on the last date of the
p r ev i o u s f i n a n c i a l ye a r, fo r ex p a n s i o n ,
diversification or modernization, will also be
eligible to get the Industrial Promotion Subsidy
equivalent to 75% of the incentives admissible
for new units. The admissible period for availing
the subsidy will be reduced by one year in the
respective category and area
• The eligible SSI units coming up in Industrial
Clusters / Parks to be notified by the State
Government and in Agro-based Industries,
Textiles, Auto & Auto components, Electronic
products, Pharmaceuticals and Gems & Jewellery,
Services - Information Technology, I.T. enabled
services, Biotechnology sectors in “C”, “D”, “D+”
areas only will be eligible for the IPS applicable to
the one step higher incentive category
81 Investor Guide
Interest subsidy
• All new eligible units in textile, hosiery, knitwear
and readymade garment sector units in the SSI
sector will receive interest subsidy. The Interest
Subsidy will be payable only on the interest
actually paid to the Banks and Public Financial
Institutions on the term loan for acquisition of fixed
capital assets, equal to the interest payable at 5%
per annum
Exemption of payment of Royalties/NA charges
• Units in MIDC areas/Cooperative Industrial Estates
will be exempted from payment of Non
Agricultural Assessment Charges
Stamp duty waiver
• The 100% exemption from Stamp duty will be
extended up to 31st March 2011 in “C, D, D+
Talukas and No Industry Districts. However, in A
and B areas, 50% stamp duty exemption will be
available to mega projects
Seed capital assistance
• Under the Seed Money Scheme, the educated
unemployed youths are getting seed money
assistance between 10% to 22.5% of the project
cost limited to a maximum of US$ 18,181.82 for
starting self-ventures from the Directorate of
Industries as margin money. The seed money
assistance carries interest @ 10% p.a. with a
rebate of 3% for prompt payment. At present
penal interest @14% is charged on delay in
payment of the seed money dues.
Research and Technology development and upgrade for SMEs

development • 5% subsidy on capital equipment for
technology upgradation limited to US$ 0.05
million
82 Investor Guide
• 50% subsidy on the expenses incurred for
quality certification limited to US$ 1,818
• 25% subsidy on cleaner production measures
limited to US$ 9,091
• 50% subsidy on the expenses incurred for
patent registration limited to US$ 9,091
Human Special incentives for units established in low-HDI

resource districts
development • New units setting up facilities in notified districts
(Gadchiroli, Yavatmal, Jalna, Nandurbar, Washim,
Dhule, Nanded, Osmanabad, Buldhana,
Chandrapur) and employing at least 75% local
persons as defined in the Employment of Local
Persons Policy will be offered 75% reimbursement
of expenditure on account of contribution towards
Employees State Insurance (ESI) and Employees
Provident Fund (EPF) Scheme for a period of 5
years. However these benefits will be limited to
25% of FCI
Sick Unit Revival of sick units

Rehabilitation • Viable SSI sick units defined by RBI will be offered
rescheduled arrears of Government duesas well as
electricity charges. They will beranteda period of
five years for repayment and ill be offered
oncessional interest rate @7% pa. The sanction of
this facility will be linked to the sanction of
rehabilitation program by the concerned financial
institution/bank The sick MSI/LSI units registered
with BIFR hat have beenapprovedfor revival
packageswill also be eligible for concesional
interest rate of 7% p.a
83 Investor Guide
Trade Refund of Octroi/Entry Tax in lieu of Octroi
• Octroi based incentive will continue to be offered
by way of refund of Octroi Duty/Entry Tax etc. An
eligible unit, after it goes into commercial
production, will be entitled to Refund of octroi
duty, or any entry tax or account based cess levied
by the micipal bodies in lieu of octroi and paid to
the local authority on import of all the items
required by the Eligible Unit. This incentive will be
admissible in the form of a grant restricted to
100% of the admissible Fixed Capital Investment
of the Eligib Unit for a period of 5/7/9/12 years
respectively in the B/C/D/D+ areas. In respect of
No Industry District reas, however, the period will
be 15 years
Octroi Exemption on Raw Materials
• 100%exemptionn he octroi payable on all raw
materials used by unis in Municipal Corporation
areas for manufacture of products to be exported
out of the limits of the Municipal Corporationsis
being proposed
Source: Industrial, Investment, and Infrastructure Policy 2006, Department of Industries,

Energy and Labour, Government of Maharashtra16
Specific incentives under textile policy

Maharashtra Textile Policy
Fiscal Capital Subsidy
• 10% capital subsidy to new textile units in
Marathwada, Vidarbha and North Maharashtra
under the Textile Policy for 2011-2017
• Original project cost eligible for interest subsidy
under the Centrally sponsored TUF Scheme
only shall be considered.
16
The State has designed a new Industrial Policy, which will be released only in 2013
84 Investor Guide
• The said 10% capital subsidy shall be in
addition to all the benefits available from all
sources [i.e. Centrally sponsored TUFS,
Industries Department's policy etc.] including
the assistance in respect of interest subsidy
available under the new Textile Policy of the
State.
• Project of Marathawada, Vidharbha & North
Maharashtra sanctioned and set up under the
centrally sponsored TUF scheme within the
period of the issuing date of this Government
Resolution to 31st March. 2017 are eligible.
• Projects sanctioned under the centrally
sponsored TUF scheme from the date of
issuing this Government Resolution till the date
31.3.2017.
• The 10% capital subsidy scheme will not be
applicable to projects of modernization/
expansion of existing textile units.
• 10% Capital Subsidy for modernization of existing
powerloom unit belonging to Scheduled
castes/Tribes and minority communities Under the
Textile Policy- 2011-2017.
• Projects eligible for 10% capital subsidy:
• Projects of Scheduled Castes:-
• Projects of Scheduled Castes on
private or co-operative basis.
• If it is a private project, at least 80% of
the shares in the project should be
held by members of scheduled castes.
• If the project is on co-operative basis,
at least 80% of the members in the
co-operative society should belong to
the schedule castes.
• Projects of Scheduled Tribes:-
85 Investor Guide
• Projects of Scheduled Tribes on private or co-
operative basis.
• If it is a private, at least 80% of the shares in
the project, should be held by members of
Scheduled Tribes.
• If the project is on co-operative basis, at least
80% of the members in the co-operative
society should belong to the scheduled tribes.
• Projects of Minorities:-
• Projects of minority communities on private or co-
operative basis.
• If it is a private project, at least 80 % of the
shares in the project should be held by
members of minority communities.
• If a project is on co-operative basis at least
80% of the members in the co-operative
society should belong to the minority
communities.
• There will be no ceiling on investment in a
project. However, 10% capital subsidy will be
payable on the amount of long term loan
admissible for the purpose of the interest
subsidy under the centrally sponsored TUFS.
• The said 10% capital subsidy will be in
addition to all the concessions available from
all sources (i.e. the centrally sponsored TUFS,
the Industry Department of State etc.) and
the concessions in respect of interest subsidy
available under the state's textiles policy,
2011-17.
Interest subsidy
• Interest Subsidy to new textile, hosiery and knitwear
SSI units: New textile, hosiery and knitwear small-
scale industries setting up in different parts of the
Start will also be eligible for Interest Subsidy on the
interest actually paid to the financial institution/bank
on the term loan for creating fixed capital assets,
86 Investor Guide
equal to the interest payable at 5% per annum as
stated in the table below. The monetary ceiling will be
applicable for the complete period of eligibility.
Taluka/Area Monetary ceiling limit Maximum period

Classification (US$) in years
A - -
B - -
C 18,181.82 4
D 36,363.64 5
D+ 45,454.55 6
No Industry District 63,636.36 7
• Scheme of interest subsidy on long-term loans

linked to the Centrally sponsored TUF scheme: For
the purpose of this scheme, either 12.5% or
Banks' prime lending rate or the rate of interest
actually charged, whichever rate is less, will be
taken as applicable rate of interest. The benefit
under the said scheme will be admissible for
newly set up textile units in the State as well as
modernization/ expansion/ rehabilitation of existing
textile units.
• The State will provide financial assistance in a
manner that effective rate of interest payable by
the eligible units will be 0% or 2%. Taking into
account assistance from all the sources
(Centrally Sponsored TUF Scheme, industrial
policy of the State etc.)
• The units to be charged 0% and 2% rate of
interest are as under :-
S. No. 0% rate of Interest 2% rate of Interest

1. All eligible textile units in Private cotton mills in areas
Vidarbha, Marathwada, North other than Vidarbha,
Maharashtra, Konkan and D+ Marathwada, North
Industrial Areas Maharashtra, Konkan and D+
Industrial Areas.
87 Investor Guide
S. No. 0% rate of Interest 2% rate of Interest

2. Garmenting in the entire State.
3. New Powerloom Industries Private Processing Units.

based on modern technology in
the whole State.
4. Modernization of Powerlooms Private Knitting units.

in the whole State.
5. All types of silk projects in the
entire State.
6. All eligible textile units in the
cooperative sector.
• Projects eligible for interest subsidy scheme:

• Projects sanctioned on or after the date 1.4.2011
under the Centrally sponsored TUFS but excluding
the jute industry in Para 7[I]C in the Government
Resolution dated 28 April, 2011 in respect of
Centrally sponsored TUFS.
• Textile units set up in the State of Maharashtra.
• Under this scheme the total period of reimbursement
of interest subsidy shall be 7 years, which will include
2 years of moratorium on the lines of provisions under
para 6(xiii) of Centrally Sponsored TUF Scheme dated
28th April 2011.
• There will be no ceiling on investment in a project.
However, the interest subsidy will be payable on the
amount of long term loan admissible for the purpose
of the interest scheme under the centrally sponsored
TUFS.
Source: Textile Policy of the Government of Maharashtra for the Year 2011-2017, Cooperation,
Marketing & Textiles Department, Government of Maharashtra
88 Investor Guide
Industries, Energy and Labour Department, Govt of Maharashtra:
http://industry.maharashtra.gov.in/
Textiles Department, Govt of Maharashtra:
www.mahatextile.maharashtra.gov.in
D. Karnataka
Karnataka is amongst the country's leading industrial states, and has

focused extensively on the development of its industries, as well as its trade
and service sectors. The State's Industrial Policy aims to increase the
industry's contribution to GDP to 20% by 2014, and targets providing
additional employment of 1 million by 2014. Innovation-driven holistic growth
of the MSME sector is an especially strong focus of the state's policy
initiatives. This drive towards growth is especially evident in the state's
implementation of Suvarna Karnataka Development Corridor Programme,
which will create four major industrial corridors throughout the length and
breadth of the state.
The state's textile policy is designed on similar targets of achieving holistic

development, and outlines a cluster development approach for the growth of
the state's textile sector. The state is especially eager to promote the
technical textiles sector, aiming for acquiring “fast-mover advantages” in the
national technical textiles sector. The policy supports ventures in technical
textiles such as camouflaged clothing, construction textiles, institutional
manufacturing gears, etc. The magnitude of the various incentives the state
o ffe r s va r y by g e o g r a p h i c a l a r e a s i n w h i ch t h e u n i t s a r e
established/registered.
89 Investor Guide
Specific and relevant incentives under the state industrial policy
Karnataka Industrial Policy

Infrastructure Exemption from Electricity Duty
• 100% exemption of electricity duty / tax for the
initial period of five years, four years and three
years for micro and small manufacturing
enterprises operating in Zone 1, Zone 2 and
Zone3, respectively
Fiscal Investment promotion subsidy

Eligibility
• Enterprises availing term loan to an extent of
minimum 50% cost of fixed assets
• The unit shall avail the sanctioned subsidy within
the period of five years.
Benefits
• 15%-25% VFA, with a maximum of US$ 9,090 –
US$ 18,181 for micro manufacturing enterprises
• 10%-20% VFA, with a maximum of US$ 18,181 –
US$ 36,363 for small manufacturing enterprises
• US$ 36,363 – US$ 54,545 for medium
manufacturing enterprises employing a minimum
of 25 workers
• Additional 5% subsidy, with a maximum of US$
1,818, US$ 5,454 and US$ 9,090.91 for Micro,
Small and Medium Manufacturing Enterprises,
respectively, managed, owned and/or operated by
SC/ST, women, physical challenged, ex-servicemen
entrepreneurs and enterprises coming up in the
most backward taluks of Hyderabad-Karnataka
region
Stamp duty exemptions and concessional
registration charges
Eligibility
• Enterprises availing
90 Investor Guide
• Loan agreements, credit deeds, mortgage and
hypothecation deeds executed for availing term
loans from State Govt. and / or State Financial
Corporation, Industrial Investment
Development Corporation, National Level
Financial Institutions, Commercial Banks, RRBs,
Co-operative Banks, KVIB / KVIC, Karnataka
State SC/ST Development Corporation,
Karnataka State Minority Development
Corporation and other institutions notified by
the Government between 2009-2014
• Lease deeds, lease-cum-sale and absolute sale
deeds executed by industrial Enterprises in
respect of industrial plots, sheds, industrial
tenements, by KIADB, KSSIDC, KEONICS,
KSIIDC, Industrial Co-operatives and approved
private industrial estates
Benefits
• 75% - 100% exemption of stamp duty
• For all loan documents and sale deeds as specified
above, the registration charges shall be at a
concessional rate of US$ 0.018 per US$ 18.18
Conversion fine waiver
• The payment of conversion fee for converting the
land from agriculture use to industrial use including
for development of industrial areas by private
investors will be reimbursed by 75% - 100%
following project implementation
Entry tax exemptions
• 100% exemption from payment of entry tax on
'Plant & Machinery and Capital Goods' for an initial
period of 3 years from the date of commencement
of project implementation. 'Plant & Machinery and
Capital Goods' includes Plant & Machinery,
equipment etc. including machineries for captive
91 Investor Guide
generation of Electricity for MSME, large and
mega projects in Zones 1, 2 and 3
• 100% entry tax exemption on raw materials,
inputs, component parts & consumables
(excluding petroleum products) [wherever
applicable] for a period of 5 years from the date of
commencement of commercial production
Exemption of Agricultural Produce Market
Committee Cess / fees
• APMC Cess/ fees in respect of procurement of
agriculture produce as specified in the Schedule
(inserted by Act No.17 of 1980 and effective from
30.06.1979) Sl.No. II, III, IV, VI, VII, IX and X to the
Karnataka APM (Regulation & Development) Act,
1966, directly from farmers for processing by new
and existing industries in Zone – 1, 2 & 3 shall be
exempted for a period of five years, four years and
three years respectively for MSME, Large, and
Mega Projects
Interest-free loan on VAT
Eligibility
• All new large and mega manufacturing Enterprises
established in Zone – 1, 2 and 3
Benefits
• Interest-free loan of 50% of assessed gross VAT
for initial 5 yrs. subject to the max. of 100% of
total value of fixed assets for units investing US$
1.82 million – US$ 9.09 million with minimum
direct employment generation of 100, and
additional employment of 20 for every US$ 1.82
million investment. Repayment of the loan shall be
in 3 annual instalments after 5 yrs.
for initial 6 yrs. subject to the max. of 75% of total
92 Investor Guide
value of fixed assets for units investing US$ 9.27
million – US$ 45.45 million with minimum direct
employment generation of 200, and additional
employment of 20 for every US$ 9.09 million
investment. Repayment of the loan shall be in 3
annual instalments after 6 yrs.
for initial 7 yrs. subject to the max. of 50% of total
value of fixed assets for units investing US$ 45.64
million - US$ 182 million with minimum direct
employment generation of 400 for investment
upto US$ 54.55 million, and additional
employment of 50 for every US$ 18.18 million
additional investment. Repayment of the loan shall
be in 4 annual instalments after 7 yrs.
total value of fixed assets for units investing US$
182 million – US$ 545 million with minimum direct
employment generation of 750 for investment
upto US$ 182 million, and additional employment
of 25 for every US$ 0.18 million additional
investment. Repayment of the loan shall be in 4
annual instalments after 10 yrs.
total value of fixed assets for units investing over
US$ 545 million with minimum direct employment
generation of 1250. Repayment of the loan shall be
in 5 annual instalments after 12 yrs.
Interest subsidies
• Micro manufacturing enterprises that have availed
term loans with financial institution may receive
Interest subsidy of 5% on the interest actually paid
to the financial institution. Unit should not have
93 Investor Guide
defaulted in payment of principle or interest
nstalment.
• The period of interest subsidy is 5 years, 4 years
and 3 years in Zones 1, Zon 2 and Zone 3,
respectively
Research and Technology upgrade, quality certification and patent

development registration
• Interest subsidy of 5% on technology upgrade
loans availed from KSFC, KSIIDC & Scheduled
commercial banks, which are not covered under
CLCSS of GOI, for micro and small manufacturing
enterprises located in Zones 1, 2 and 3
• ISO series certification for micro and small
manufacturing enterprises located in Zones 1, 2
and 3 at 75% of cost at a maximum of US$ 1,363
• Micro and small manufacturing enterprises can
avail assistance of 50% on fees payable to BIS, to
a maximum US$ 363, and of 25% of cost, to a
maximum of US$ 909.09 for purchase of testing
equipments approved by BIS
• Micro and small manufacturing enterprises
registering patents can avail assistance of 75% of
cost of fees payable to Patent Office, to a
maximum of US$ 2,272, and 50% of cost, to a
maximum of US$ 1,363, towards attorney fees,
patent search, etc
adopting new technologies can avail assistance of
25% of the cost of adoption to a maximum of US$
909 for technologies adopted from recognized
national laboratories
establishing technology business incubation
centers can avail assistance of 25% of the project
cost to a maximum of US$ 0.09 million
94 Investor Guide
Trade Entry tax exemptions for export-oriented enterprises
• For 100% export-oriented units, 100% exemption
from payment of ET on 'Plant & Machinery and
Capital Goods' for an initial period of 3 years from
the date of commencement of project
implementation irrespective of zones
• For other EOUs, (Minimum Export obligation of
25%of their total turnover) 100% exemption from
payment of ET on raw materials, inputs,
component parts & consumables (excluding
petroleum products) for an initial period of 3 years
from the date of commencement of commercial
production in Zone 1, 2, and 3 and 50% in Zone 4
Refund of certification charges for export-oriented
enterprises
• Refund of expenses incurred for compulsory
marking like Conformity Europeenne (CE), China
Compulsory Certificate (CCC), etc., to the extent
of 50% of expenses subject to a maximum of US$
3,636 per unit for both 100% and other EOUs in all
zones
Human Expenditure reimbursement for enterprises

resource following the state's reservation policy
development • Medium, large and mega manufacturing
enterprises employing more than 100 persons may
receive 50% reimbursement of expenditure
incurred for employees coming under reserved
category towards contribution to ESI & EPF
schemes for a period of initial 5 years
Other Anchor unit subsidy

• US$ 0.18 million offered to the first two
manufacturing enterprises with minimum
employment of 100 members and minimum
95 Investor Guide
investment of US$ 9.09 million in each of the
taluks located in Zones 1, 2 and 3.
• This subsidy will be applicable only in taluks where
industrial enterprises with investment of US$ 9.09
million and above do not currently exist
Special incentives for Enterprises coming up in low
HDI districts
Eligibility
• New large scale Enterprises setting up facilities in
Bagalkot, Bijapur, Koppal, Chamarajanagar,
Gulbarga, and Raichur, and employing atleast 75%
local persons as defined in the Sarojini Mahishi
recommendations
Benefits
• 75% reimbursement of expenditure on account of
contribution towards Employees State Insurance
(ESI) and Employees Provident Fund (EPF) scheme
for a period of initial five years. These benefits will
be limited to 25% of value of fixed capital
investment. The amount of reimbursement will be
paid annually based on minimum statutory limit
subject to the condition that the unit has paid its
contribution towards ESI & EPF on the due dates
Subsidies for establishment of Effluent Treatment
Plants
• One time capital subsidy upto 50% of the cost of
Effluent Treatment Plants (ETPs), subject to a
ceiling of US$ 0.18 million per manufacturing
enterprise in Zones 1, 2 and 3 and a ceiling of US$
0.09 million in Zone 4
Water harvesting and conservation measures
• Small and medium manufacturing enterprises can
avail 50% of the cost of rain water harvesting
endeavors to a maximum of US$ 1,818, 50% of
96 Investor Guide
the cost of waste water recycling endeavours to a
maximum of US$ 9,090, 50% of the cost of zero
discharge process endeavours to a maximum of
US$ 1,818
Energy conservation
• Small and medium manufacturing enterprises
practicing energy conservation measures resulting
in reduction of energy consumption of atleast 10%
of earlier consumption may receive assistance of
10% of capital cost to a maximum of US$ 9,090,
while use of non-conventional energy sources may
result in assistance of 10% of capital cost to a
maximum of US$ 9,090
Refund of cost incurred for preparation of project
reports
• Cost incurred by micro and small manufacturing
enterprises for preparation of project reports by
TECSOK/CEDOK/KSFC or any other recognized
institutions for availing loans will be reimbursed to
the maximum of US$ 181 per unit subject to
financing of the unit
Source: Karnataka Industrial Policy 2009-14, Department of Industries & Commerce,

Government of Karnataka
Specific incentives under the state textiles policy

Karnataka Textile Policy
Infrastructure Land Acquisition or allotment through Karnataka
Industrial Area Development Board (KIADB) or
Karnataka Small-Scale Industries Development
Corporation (KSSIDC)
Eligibility
• Entrepreneurs setting up new units and entering
into arrangements for procurement of Land with
KIADB / KSSIDC
97 Investor Guide
• SPVs set up with a minimum of 10 members from
the user industry and / or Industry Associations for
the purpose of developing Textile Parks in
identified locations, entering into arrangements for
procurement of Land with KIADB/KSSIDC
Benefits
• Reimbursement of 25% of the cost of land
including acquisition charges, if any, as charged by
KIADB / KSSIDC or US$ 45,454, whichever is less,
for industries located in Zone 1
• Reimbursement of 50% of only the acquisition
charges levied by KIADB / KSSIDC or US$ 0.03
million, whichever is less, for industries located in
Zone 2
Common infrastructure for greenfield textile
projects
Eligibility
• SPV comprising a minimum of 10 entrepreneurs
from the user industry to develop green field
textile and garment industry parks in the State.
Minimum of 51% of the equity in the SPV is to be
held by the user industry, the balance 49% can be
held by strategic partners / developers /
Government agencies, etc
• These parks should be a minimum of 25 acres in
size, and can 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
Benefits
• Government of Karnataka will provide one-time
grant support for development of common
infrastructure with an amount of 20% - 40% of the
98 Investor Guide
project cost or US$ 0.015 million – US$ 0.022
million, whichever is less
• For projects approved by Scheme for Integrated
Textile Parks (SITP), Government of Karnataka will
provide 9% of the project cost or US$ 0.91 million,
whichever is less
Fiscal Credit-linked capital subsidy

• 15% - 20% on the value of fixed assets, or US$
0.03 million – US$ 0.04 million, whichever is less
• Additional subsidy for units within designated
textile parks, and for SC/ST persons with
disabilities/minorities/ex-servicemen and women:
5% on the value of fixed assets or US$ 9,090,
whichever is less
Stamp duty exemptions
50% - 100% reimbursements for entrepreneurs
setting up new units and entering into
arrangements for procurement of Land, and for
SPVs with a minimum of 10 members from the
user industry and/or Industry Associations for the
purpose of developing Textile Parks in identified
locations:
• Execution of lease, lease-cum-sale and sale deeds
for industrial land or for plots allotted
• Execution of lease deeds for industrial sheds or for
plots taken on lease
• Loan and credit deeds, including security
documents such as mortgage deeds, pledge
deeds, etc, executed for availing long term funds
from banks or from financial institutions and other
agencies of GoK/GoI
• Stamp duty paid on Imports
99 Investor Guide
Entry tax reimbursement
• Full reimbursement on Plant & Machinery and
Capital Goods including equipments for captive
power generation and for Common Effluent
Treatment and waste disposal facilities
Human Capacity-building support

resource Eligibility
development
• A group comprising a minimum 5 entrepreneurs
with units in the State / Industry Associations
• SPVs developing textile parks through Central or
State Government assistance.
Benefits
• Reimbursement of 50% of the project cost or US$
0.09 million, whichever is less for market
development and branding
• Reimbursement of 50% of the project cost or US$
0.05 million, whichever is less for design
development and product diversification
• Reimbursement of 50% of the cost or US$ 3,636,
whichever is less for obtaining certification,
accreditation, or any of the other internationally
recognized/accepted standards, such as ISO-9000,
ISO-14000, ISO-18000, Social Accountability
Standards, Internationally-accredited eco-labels
OKE-TEX 100, etc, and any other internationally
accredited certification that will enable better
market positioning
Strengthening of existing training institutes
Eligibility
• The institution should have been in existence at
least for 5 years conducting academic programs in
textile education offering certificate / diploma /
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degree courses of minimum one year duration.
Technical subjects of sub-sectors of spinning,
weaving, knitting, processing, garmenting &
fashion designing, technical textiles, etc
Benefits
• Funding support of US$ 0.18 million for each
institution during the policy period\
Benefits
• The assistance will be limited to the items of
capital expenditure covering plant & machinery,
testing lab, CAD/CAM centre, teaching aids,
content development, etc. that are directly related
to conducting the textile education related courses
• The assistance will not be available for land,
building and other infrastructure works, and it shall
be the responsibility of the beneficiary institution
to provide the same
• The assistance will not be available towards any
recurring costs such as salaries, insurance &
maintenance of the machinery, consumables,
electricity costs, etc., and it shall be the
responsibility of the beneficiary institution to meet
the same
Establishment of New Skill Development Centers
(SDCs)
Eligibility
• Individual Industry unit, Industry Associations,
Export Promotion Councils.
• Academic institutions and vocational education
institutions under the Central and State
Governments, autonomous bodies and private
sector institutions.
• Special Purpose Vehicles (SPVs) promoted by
101 Investor Guide

textile parks, private sector companies,
Government agencies, etc.
• Non Governmental Organizations (NGOs).
• Other organizations that focus on skill
development
• Agencies should have proven track record of
conducting vocational skill development
programmes. The agencies that do not have any
previous experience of skill development should
have a clear business model, organizational set up
and resources to undertake such skill development
programmes
• Each of the projects/SDCs shall target to train at
least 1500 persons over a period of 3 years
• The courses will be short duration varying from
one month to three months, and the syllabus
should be framed to suit the industry needs and
shall have prior approval of the accreditation body
as mentioned in the following section
Benefits
• Each SDC will be eligible for one-time funding
support of US$ 0.18 million – US$ 0.27 million
• All the items of capital expenditure, except land
and building, to establish the SDC will be eligible
for funding. The assistance will not be available for
land, building and other infrastructure works, and it
shall be the responsibility of the beneficiary
institution to provide the same. All the efforts will
be made to identify and utilize the existing
buildings available with various Government
agencies including educational institutions, and
other sources including the applicant agencies
• Trainees will be provided wage compensation per
month during the training period under the policy.
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Wherever possible, assistance available under
various Central and State Government schemes
will be dovetailed to provide stipend / wage
compensation to the trainees
Industry and institution linkages
• US$ 0.91 million will be earmarked towards pro-
actively facilitate creation of linkages between the
Institutions / Agencies implementing the HRD
programmes and the textile and garment industry
Other Common effluent treatment plant and hazardous

waste disposal facilities
Eligibility
• SPV comprising a minimum of 10 entrepreneurs
from the user industry establishing these facilities
Benefits
• Government will provide one-time grant support of
50% of the project cost or US$ 0.91 million,
whichever is less, in four equal instalments
• Projects funded under any GoI scheme will provide
20% of project cost or US$ 0.36 million, whichever
is less
Source: Suvarna Vastra Neethi 2008-13, Department of Handlooms and Textiles,

Government of Karnataka

Department of Industries and Commerce, Government of Karnataka:
http://www.karnatakaindustry.gov.in/
Department of Handlooms & Textiles, Government of Karnataka:
http://www.textiles.kar.nic.in/
103 Investor Guide

E. Andhra Pradesh
Specific incentives under state industrial policy
Andhra Pradesh Industrial Policy

Infrastructure Land
• Reservation of 30-40% of the land for MSMEs in
the upcoming industrial estates developed by
Andhra Pradesh Industrial Infrastructure
Corporation (APIIC). APIIC shall allocate 16.2% of
number of plots to Scheduled Caste entrepreneurs
and 6% of number of plots to Scheduled Tribe
entrepreneurs in new Industrial Estate and
preferential allotment to SC/ST entrepreneurs in
existing industrial estates. Andhra Pradesh
Industrial Infrastructure Corporation (APIIC) shall
allocate 10% of number of plots to Women
Entrepreneurs in the new industrial estates
• 100% reimbursement of Stamp duty and transfer
duty paid by the industry on purchase of land
meant for industrial use
• 100% reimbursement of Stamp duty for Lease of
Land/Shed/ Buildings and also mortgages and
hypothecations
• 25% rebate in land cost limited to US$ 0.02 million
in Industrial Estates or Industrial Parks for MSMEs
and large industries, and 331/3% rebate for SC/ST
entrepreneurs
• 25% Land conversion charges for industrial use
limited to US$ 18,181 for MSMEs and SC/ST
entrepreneurs
Power
• Fixed power cost reimbursement at US$ 0.014 per
unit (upper ceiling) on the proposed revised rates
(2010-11) for 5 years from the date of
commencement of commercial production. In
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case of a decrease in the power tariff, the
reimbursement will be reduced proportionately for
MSMEs and large industries
• Fixed power cost reimbursement at US$ 0.018 per
unit (upper ceiling) on the proposed revised rates
(2010-11) for 5 years from the date of
commencement of commercial production. In
case of a decrease in the power tariff, the
reimbursement will be reduced proportionately for
SC/ST entrepreneurs
For medium and large enterprises, and for MSEs
established by SC/STs, infrastructure like roads,
power and water will be provided at door step of
the industry for standalone units by contributing
50% (MLE) – 75% (MSEs by SC/ST) of the cost of
infrastructure from IIDF with a ceiling of US$ 0.18
million, subject to
• The location being beyond 10 kms from the
existing Industrial Estates/IDA's having vacant
land/shed for allotment
• Cost of the infrastructure should be limited to 15%
of the eligible fixed capital investment made in the
industry
Water
• Reservation of 10% of water for industrial use
from the existing projects as well as future
projects will continue
VAT, CST, SGST exemptions
• Reimbursement of 100% VAT/CST or State Goods
and Services Tax (SGST) for a period of 5 years
production for micro enterprises
105 Investor Guide

production for small enterprises
production for medium enterprises and large
industries
Capital investment subsidies
• 15% investment subsidy on fixed capital
investment subject to a maximum of US$ 0.04
million for MSEs; 35% fixed capital investment
subsidy for MSEs owned by SC/STs, and 40%
subsidy for MSEs owned by SC/ST women
entrepreneurs with a maximum limit of US$ 0.09
million per unit; 45% subsidy for units set up in
Scheduled Areas by ST entrepreneurs with a
maximum limit of US$ 0.09 million per unit
• Interest subsidy of 3% - 9% per annum on the
term loan taken on the fixed capital investment by
New Micro and Small Enterprises for a period of 5
years from the date of commencement of
commercial production under Pavala Vaddi Scheme
• Seed capital assistance to First Generation
Entrepreneurs to set-up Micro Enterprises at10%
of the Machinery cost, which will be deducted
from the eligible investment subsidy for MSEs and
SC/ST entrepreneurs
development • 50% subsidy on the expenses incurred for quality
certification/ patent registration limited to US$
3,636 for MSME'
106 Investor Guide


resource • 50% Reimbursement of cost involved in skill
development upgrade and training the local manpower limited
to US$ 36per person
Other Clean energy initiatives

• 25% subsidy on specific cleaner production
measures limited to US$ 9,090
Source: Industrial Investment Promotion Policy 2010-15, Industries and Commerce Department,
Government of Andhra Pradesh
Specific incentives under state textile policy

Andhra Pradesh Textile Policy
Fiscal Stamp duty exemptions

• 100% reimbursement of stamp duty, transfer duty
and Registration fee paid by Textile/Apparel units
Corporate tax exemptions
• Applicable to all units located in SEZ Parks as per
SEZ act besides assisting in Exports and Imports
Other Zoning regulations

• Textile/Apparel units will be exempted from the
zoning regulations and from the payment of
conversion fee
Urban land ceiling exemptions
• Private land owners will be allowed exemption
under ULC for development of Textile/Apparel
Parks with a minimum extent of 25 acres in the
periphery of city limits and beyond besides a
minimum of 5 acres within city limits
Health care
• 10 – 15 acres of land will be earmarked amongst a
cluster of units to promote higher healthcare
107 Investor Guide

Andhra Pradesh Textile Policy
• The Government of Andhra Pradesh will notify all
Textile and Apparel Parks as Public Utility Services.
It is also decided that Essential Service
Maintenance Act (ESMA) will be made applicable
to the Textile and Apparel Parks to provide facility
of engaging workers beyond the normal working
hours for achieving higher productivity and to catch
export markets
Source: Textile and Apparel Promotion Policy 2005-10, Handlooms & Textiles Department,
Government of Andhra Pradesh17

Department of Industries, Government of Andhra Pradesh:
www.apind.gov.in
Department of Handlooms & Textiles, Government of Andhra Pradesh:
www.aponline.gov.in
F. Rajasthan
The business environment of Rajasthan is nurtured by an enterprise-
friendly government, rich mineral and agro resources, good infrastructure
which is being continuously upgraded, a tradition of entrepreneurship
and availability of skilled manpower. Rajasthan's development road-map is
deeply rooted in the conviction that sound infrastructure drives investment
and economic growth. Significant and sustained efforts and investments in
strengthening transportation, communication and industrial infrastructure
have resulted in a strong physical infrastructure backbone in the State.
From a policy perspective, the state is placing significant emphasis on

increasing opportunities for its small-scale industries and increasing the
diversity and number of medium- and large-scale industries in non-extractive
industries.
Specific incentives under the state's Industrial and Investment Promotion

Policy 2010 are highlighted below:
17
The Industrial Investment Promotion Policy 2010-15 has extended the clauses and incentives of the
pre-existing Textile and Apparel Promotion Policy 2005-10 by an additional five years to 2015.
108 Investor Guide

Rajasthan Industrial and Investment Promotion Policy
Infrastructure Land
• Wherever a particular use of land is specified in
the master plans of the towns and cities, such land
can be used for such specific purposes without
any permission for change in land use
• For projects envisaging investment of US$ 18.18
million and above if 25% of the land is purchased
by the developer on his own, the government may
facilitate acquisition of the remaining 75% land
• MSME entrepreneur associations attempting to
create MSME clusters through Special Purpose
Vehicles (SPVs) will be eligible for obtaining
government land at 50% of DLC rates
Human Support for expenses incurred for employees
resource • Employers would be provided subsidy up to 50%
development of the salary or stipend paid to trainees limited to
US$ 36 per trainee per month. Employers
benefitting from the scheme are expected to
provide employment to 50% of the trainees
Training infrastructure
• Over the next 5 years, the government proposes
to set up one Rural Development and Self-
Employment Training Institute (RUDSETI) in every
district of the state, largely through private
initiative.
• To develop training infrastructure at the doorstep
of industrial areas or clusters, a new scheme to
provide financial assistance will be provided for
land, building plant and machinery etc. subject to a
maximum of US$ 0.18 million will be launched.
• Financial assistance including capital and operating
expenditure reimbursement will be provided to
lead institutes for developing new training courses,
benchmarking the existing courses against
109 Investor Guide

international curriculum and conducting the new
courses in specific focus sectors
• To encourage establishment of Technical
Institutions like Engineering, MBA, MCA etc. in
rural areas, land would be converted for such
purpose without any conversion charges. Where
investment of US$ 9.09 million or more is obtained
for establishing such institutions, the promoter
maybe offered land at 50% of the reserve price of
land for industrial use.
Trade Export subsidies

• Export units, wherever necessary, will be given a
30% grant for ground rent for participation in
approved international trade fairs subject to a
maximum limit of 9 sqm.
Other Viability gap funding for PPP projects

• Government of India provides Viability Gap support
for PPP projects to the extent of 20% of project
cost. State would also provide additional viability
gap funding up to 20% of project cost, wherever
so necessary and critical. State would provide
required budgetary support for the purpose.
Source: Rajasthan Industrial and Investment Policy – 2010, Department of Industries,

Government of Rajasthan
Specific incentives specific to MSMEs under the state's Industrial and

Investment Promotion Policy 2010 and Policy Package for Micro, Small and
Medium Enterprises in Rajasthan 2008 are highlighted below:
110 Investor Guide

Rajasthan Policy Package for Micro, Small and Medium Enterprises
Infrastructure Land
• In addition to any other grant given by Government
of India, RIICO will provide land at 50% of the
prevailing DLC rates. Operational/running/
maintenance cost of such plants and facilities will
be borne by such industries associations. This
support shall be initially provided to 10 such
CETPs/common effluent treatment facilities,
subject to review thereafter
Power
• RIICO shall develop separate rural small industrial
areas for Micro, Small and Medium Industry with
24 hours three-phase uninterrupted power supply
and enabling infrastructure, viz. road connectivity,
drainage system, street lighting, water supply, etc.
in the potential growth areas to be identified by
the State Government. Total area of such rural
small industrial areas will be of at least 100
hectares with normal average plot size of 2000 sq.
metres and plots shall be allotted only to non-
polluting industries. RIICO shall develop such areas
on noprofit-no-loss basis. The State Government
shall provide 10% subsidy to RIICO towards the
capital cost.
Electricity Duty Exemption
• Exemption of 75% from Electricity Duty to the
units located in rural areas, i.e. areas outside the
limits of municipalities, municipal councils,
municipal corporations, urban improvement trusts
and urban development authorities
Infrastructure development
• The State Government will suitably augment
'Critical Infrastructure Fund' and 50% of this fund
will be earmarked for infrastructural needs of the
Micro, Small Enterprises clusters, such as
111 Investor Guide

Rajasthan Policy Package for Micro, Small and Medium Enterprises
providing road connectivity, power lines and water
availability.
Fiscal Entry Tax exemption

• Exemption from Entry Tax on inputs, such as raw
materials, processing materials, packaging
materials except fuels
CST Exemption
• For Micro and Small industrial enterprises, the CST
shall be reduced to 0.25%
Stamp Duty Exemptions
• Stamp duty chargeable on loan agreements and
deposit of title deed and lease contract shall be
reduced to US$ 1.82 per document. Stamp duty
chargeable for execution of simple mortgage either
in cases when the possession of the properties
not transfer to loanee or when possession of
property is transferred to loanee shall be reduced
to US$ 9.09 per document
Easier access to credit
• To ensure easy and smooth credit flow to the
artisans, the State Government will get at least
10,000 'Artisans Credit Cards' issued per year
from different banks in the next five years

development • An industrial enterprise or R&D unit or testing
laborator y filing and obtaining Patent/ISO
certification during the period between 1.4.2007
and 31.12.2011 will be provided reimbursement of
the expenses incurred towards this, subject to a
limit of US$ 3,636 or 10 times of the fee,
whichever is lower
112 Investor Guide

• Research, development, and testing laboratories
set up by Micro, Small & Medium Enterprises
Associations will be given land at 50% of the DLC
rates and may be provided part of the capital cost
incurred on establishment of such laboratories,
subject to a limit of US$ 0.36 million, provided that
such laboratories obtain accreditation from a
national level Accreditation Board/Authority

resource • For ensuring availability of skilled manpower in the
development State, training institutes set up in the State by
National/State level institutions, may be provided
free land and 50% of the capital cost involved.
Employment
• To encourage women entrepreneurs in micro and
cottage industry, Rajasthan Financial Corporation
will launch a special scheme of providing loan at
subsidized rates.
Other Marketing Support

The State Government shall provide the following
facilities for purchases of stores/services from MSME
registered/having Entrepreneur memorandum with the
Industries Department by its various departments,
PSUs and autonomous bodies
• Tender form shall be made available at 50% of the
prescribed cost.
• Earnest money shall be deposited at 0.5% of the
estimated value of purchases/services
• Security deposit will be 1% of the value of the
purchases/services
113 Investor Guide

Cluster development
• Anchor units, nodal institutions and/or industry
associations developing a cluster having critical
mass of minimum 20 units would get financial
assistance for taking up activities for developing
common facilities that lead to improvement of
productivity and cost efficiency among member
units in the cluster.
• Government shall provide financial assistance up
to 10% of the total project cost of Cluster
Development Plan, within a ceiling of US$ 0.27
million.
Effluent treatment plants
• State Government shall provide 50% of capital
cost for establishment of Common Effluent
Treatment Plants (CETP)/facilities by industries
associations of Micro, Small and Medium
Enterprises in industrial areas/clusters
• The State Government shall bear 50% of the
capital cost incurred by the Small & Medium
Enterprises for establishment of effluent treatment
plant/facility provided the unit uses 80% of the
recycled water
Source: Policy Package for Micro, Small and Medium Enterprises in Rajasthan 2008,
Department of Industries, Government of Rajasthan

Department of Industries, Government of Rajasthan:
http://rajind.rajasthan.gov.in/
G. Punjab
Punjab was the first Indian State to use agricultural technology to engineer a
“Green Revolution”, recording the highest growth rate in food production.
Today, with its rich agricultural resources and favourable climate, the state
continues to be one of the largest producers of food grains and cash crops in
114 Investor Guide

the country. Punjab contributes 68% to the annual food production of India.
Punjab's large agriculture base gives it a competitive advantage in industries
such as food processing and textiles.
Following are the thrust areas of the policy:

• To play the role of facilitator & hand-holding being investor-friendly.
• To lessen the Government control while outsourcing regulatory
measures.
• To bring administrative reforms under the aegis of Punjab Social
Development and Governance Reforms Commission.
• To attract investment in the private sector & under the PPP mode.
• To create Dedicated Fund for the development of clusters, Common
Facilities. Centres and providing infrastructural support under the
initiatives of Centre & State Government.
• To promote competitiveness and cutting costs for the industry.
• To stimulate economic growth, industry and service sector being the
main engines of growth.
• To promote IT & IT Enabled Services.
• To promote value addition to the resources of the State while
promoting Agro based & Food processing industry.
• Emphasis on fresh employment generation and skill upgradation.
• To revive the sick industry by way of OTS and to provide mechanism
for debt re-structuring.
• To address & take care of environmental issues
115 Investor Guide

Specific incentives offered under the industrial policy
Punjab Industrial Policy

Infrastructure Electricity
• The Empowered Committee has been reducing
Electricity Duty on mega projects to half for a period
of five years. This incentive will be increased to full
waiver of Electricity Duty for a period of seven years
for mega Textile projects in districts of Patiala,
Sangrur, Mansa, Bathinda, Faridkot, Moga, Muktsar
and Ferozepur.
Land and building
• Change of land use will not be required anywhere in
the State except in the areas falling within the
municipal limits.
• There shall be no stamp duty on first sale/transfer of
developed infrastructure by the developer in industrial
parks / complexes as approved by the Department of
Industries during the setting up of such areas and
subsequently for a period of three years
Fiscal VAT Refund

• Time period for issuance of VAT refunds has been
reduced from 90 days to 60 days. Further, 75% of the
VAT refund has been allowed against Indemnity Bond
to the Units who are filing returns on monthly basis.
Any delay in grant of refund beyond period of 60 days
attracts the provision of payment of interest, besides
punitive action against the official/officer responsible
for delay.
Source: Industrial Policy 2009, Department of Industry and Commerce, Government of Punjab
Specific incentives offered under the textile policy

Punjab Textile Policy
Infrastructure Electricity duty waiver
• 100% waiver till 2013 for mega textile projects in
districts of Patiala, Sangrur, Mansa, Bathinda,
Faridkot, Moga, Muktsar and Ferozepur
116 Investor Guide

Punjab Textile Policy
Technology Technology Up-gradation
upgrade • Capital ceiling for machinery under TUFS scheme has
been increased from US$ 0.11 million to US$ 0.18
million for decentralised powerloom sector. The rate
of credit linked capital subsidy under this scheme is
15% for small scale textile industry.
Source: Textile Policy 2006, Industries Branch, Department of Industry and Commerce,
Government of Punjab

Department of Industry, Government of Punjab:
http://www.pbindustries.gov.in/
H. Madhya Pradesh
Madhya Pradesh is a leading textile hub with exports of US$ 327 million per
annum. The government has implemented a cluster development strategy
through infrastructure development, with the establishment of a textile park
in Chhindwara under Scheme for Integrated Textile Parks (SITP).
Furthermore, apparel parks have also been proposed at Indore and Jabalpur.
Textile-specific Industrial Training Institutes (ITIs) are also being established
under the state's Skill Development Programme in Public Private Partnership
Mode.
Specific incentives under the state's Industrial and Investment Promotion

Policy 2010 (amended in 2012) and Technical and Skill Development Policy
2012 are highlighted below:
Madhya Pradesh Industrial and Investment Promotion Policy 2010

Infrastructure Land
• Micro and small industries will be given exemption of
50% in land revenue on diversion of up to 5 acres of
land purchased by them for industrial purposes.
• Mega projects, i.e. projects with fixed capital
investment (excluding working capital) of US$ 45,454
117 Investor Guide

Land
• Micro and small industries will be given exemption of
50% in land revenue on diversion of up to 5 acres of
land purchased by them for industrial purposes.
• Mega projects, i.e. projects with fixed capital
investment (excluding working capital) of US$ 45,454
will receive land at 25% of the prescribed premium
rate as below on the basis of availability of land on
the condition that the proposed fixed capital
investment shall be made within a period of 3 years
o For project cost between US$ 4.55 million and
US$ 9.09 million: Up to 5 acres to be given on
concessional rate
o For project cost above US$ 9.09 million upto US$
18.18 million: Up to 10 acres to be given on
concessional rate
concessional rate
concessional rate
o For project cost above US$ 90.91 million: Area to
be decided by Apex Level Investment Promotion
Empowered Committee on case-by-case basis
• Any industry located at one place giving employment
to more than 1000 persons on a regular basis also
considered a mega project without any stipulation on
minimum capital investment. Industries will receive
land at 25% of the prescribed premium rate as below
on the condition that regular jobs shall be created
within a period of 3 years
o Employment between 1000 and 1500: Up to 10
acres to be given on concessional rate
118 Investor Guide

o Employment above 1500 upto 2000: Up to 20 acres
to be given on concessional rate
o Employment above 2000 upto 2500: Up to 25 acres
to be given on concessional rate
o Employment above 2500: Area to be decided by
Apex Level Investment Promotion Empowered
Committee on case-by-case basis
Infrastructure
• Assistance of 15% of the expenditure on the
establishment/development of industrial parks
subject to a maximum limit of US$ 0.91 million will
be provided to the private sector on the condition
that the developed parks will have a minimum area of
100 acres, and will house a minimum of 10 industrial
units with total employment of 250 persons.
• Major and medium industries will be provided
assistance of 50% of the expenditure on
development of infrastructure, like roads, power and
water supply upto the premises of the unit (within a
ceiling of 15% of the capital expenditure subject to a
maximum US$ 0.18 million). Assistance will be
available only to industries being established at least
10km away from industrial areas where land and
building are available for allotment.
Fiscal Interest subsidy

• Eligible micro and small manufacturing enterprises
will get interest subsidy of 5% for a period of 7 years
to a maximum limit of US$ 36,363. MSEs
established by SC/ST/Women/Disabled will receive
interest subsidy of 6% for a period of 8 years to a
maximum limit of US$ 45,454
• Eligible medium manufacturing enterprises will
receive interest subsidy as follows:
119 Investor Guide

o Backward-A districts: Maximum of US$ 18,182 for
a period of 5 years at a rate of 3%
o Backward-B districts: Maximum of US$ 27,272 for
o Backward-C districts: Maximum of US$ 36,363 for
o No industry block districts: Maximum of US$
36,363 for a period of 7 years at a rate of 5%
o SC/ST/Women/Disabled will be eligible for subsidy
of 6% for a period of 8 years to a maximum
amount of US$ 45,454, regardless of location
o SSIs in textiles with fixed capital investment over
US$ 0.09 million will get special subsidy of 25%
subject to maximum of US$ 0.05 million, while
medium-scale units will receive subsidy of 25% to
a maximum of US$ 21,818 in Backward-A, US$
32,727 in Backward-B, and US$ 54,545 in
Backward-C districts
Capital subsidy
• 15% subsidy on fixed capital for MSEs to a maximum
of US$ 27,272
• 20% subsidy on fixed capital for MSEs operated by
SC/ST/Women/Disabled to a maximum of US$
36,363
Industrial investment promotion assistance
• MSMEs in Backward-C districts with fixed capital
investment between US$ 0.18 million and US$ 1.82
million will be eligible for assistance of 50% for a
period of 5 years after adjusting input tax rebate on
VAT and CST
• LMIs in advanced districts with investment less than
US$ 0.05 million can avail assistance of 50% for 3
years
120 Investor Guide

• LMIs in advanced districts with investment above
years
• LMIs in Backward-A districts with investment less
than US$ 0.04 million can avail assistance of 50% for
5 years
• LMIs in Backward-A districts with investment above
years
• LMIs in Backward-B districts with investment less
5 years
• LMIs in Backward-B districts with investment above
years
• LMIs in Backward-C districts with investment less
5 years
• LMIs in Backward-C districts with investment above
years
Entry tax exemption
• New textile units with fixed capital investment of
over US$ 18.18 million will be given entry tax
exemption for 7 years
Investment subsidy
• New textile units will be given an investment subsidy
of 10% of eligible capital investment upto maximum
of US$ 0.18 million
• Interest subsidy @ 2% for 5 yrs on TUFS linked long
term loan limited to US$ 0.91 million

Development • Manufacturing industries will be reimbursed 50% or
US$ 1,818, whichever is less, on the expenditure
incurred for getting ISO 9000 or equivalent
certification from international organizations
121 Investor Guide

• Expenditures on getting patents will be fully

reimbursed subject to a maximum limit of US$ 3,636
• Established LMIs that invest 30% of existing fixed
capital investment or US$ 9.09 million on expansion,
diversification, technology upgrade will be eligible for
assistance/facilities at par with new industrial units
• Established SSI that invest 50% of existing fixed
capital investment, not less than US$ 4.55 million on
expansion, diversification, technology upgrade will be
eligible for assistance/facilities at par with new
industrial units
Human • 25% subsidy will be given for establishment of

resource Apparel Training Institutes upto US$ 45,454
development
Other Project report cost reimbursement

• Expenditures incurred by manufacturing enterprises
will be reimbursed at the rate of 1% of the project
cost for MSMEs and 0.5% for large industries to a
maximum limit of US$ 5,454
• New vendor units established in the premises or near
large textile and auto industries with a minimum sale
of 75% of the product to the mother unit are eligible
for the same package of incentives as the mother
unit. The mother unit will be permitted to sub-lease
the land to the vendor unit.
Source: Industrial and Investment Promotion Policy 2010 (amended in 2012),

Govt. of Madhya Pradesh

Department of Commerce, Industries and Employment, Govt. of Madhya
Pradesh: http://www.mpindustry.org/
122 Investor Guide

5
FOREIGN INVESTMENT
FRAMEWORK
5 Foreign Investment framework
The Foreign Direct Investment (FDI) regime has been progressively

liberalized during the course of the 1990s, and continues as such in the
2000s, with removal of most restrictions on foreign investments and
simplification of necessary procedures. With limited exception, foreigners
can invest directly in India, either on their own or through joint ventures.
Today, foreign investment is prohibited in very few industries in India.

Moreover, investment ceilings are gradually being removed. With the intent
and objective to promote foreign direct investment through a policy
framework that is transparent, predictable, simple and reduces regulatory
burden, Government of India has formulated a consolidated FDI Policy on a
yearly basis.
Features of the GoI's consolidated FDI Policy and incentives offered by it
• Indian companies are permitted to issue equity shares fully,

compulsorily and mandatorily convertible debentures (FCD's) and
compulsorily and mandatorily convertible preference shares (CCPS)
to non-residents subject to pricing guidelines and valuation norms
prescribed under FEMA
• Issue of warrants, partly paid shares, etc. require prior approval of
FIPB. Issue of non-convertible, optionally convertible or partially
convertible preference shares and debentures needs to comply with
the external commercial borrowing (ECB) guidelines of RBI
• Foreign investment is calculated on the basis of ownership and
control of the Indian company
• No government approval is required for FDI in virtually all the
sectors/activities, except for a small negative list formulated by
Government of India
• FIPB considers proposals for foreign participation that do not qualify
for automatic approval
124 Investor Guide

• Decisions on all foreign investment proposals are usually taken
within four to six weeks of submitting an application
• Free repatriation of capital investment is permitted, provided the
original investment (on a repatriable basis) was made in convertible
foreign exchange. Further, free repatriation of profits on capital
investment is permitted, subject to payment of taxes and other
specified conditions
• Use of foreign brand names and trademarks is permitted for the
sale of goods in India
• All royalty payments, lump-sum fee for transfer of technology and
for use of trademark or brand name are permitted under the
automatic route without any monetary or duration limits
• “Single window” clearance facilities and “investor escort services”
are available in various states to simplify the approval process for
new ventures
5.1 Foreign Direct Investment Policy in Textiles
With the most liberal and transparent policies in FDI amongst emerging
countries, India is a promising destination for FDI in the textile sector. 100%
FDI is allowed in the textile sector under the automatic route. FDI in sectors
to the extent permitted under automatic route does not require any prior
approval either by the Government of India or Reserve Bank of India (RBI).
Investors are required only to notify the RBI Regional Office within 30 days
of receipt of inward remittance.
Ministry of Textiles has set up FDI Cell to attract FDI in the textile sector in
the country. The FDI cell operates with the following objectives:
• To provide assistance and advisory support (including liaison with
other organizations and State Governments);
• Assist foreign companies in finding out joint venture partners;
• To sort out operational problems;
• Maintenance and monitoring of data pertaining to domestic textile
production and foreign investment.
125 Investor Guide

5.2. Foreign Investment Promotion Board (FIPB)
The FIPB is specially empowered and chaired by the Secretary, Department
of Economic Affairs of the Ministry of Finance (MoF). It has been specifically
set up to expedite the approval process for foreign investment proposals.
Proposals for FDI are mandatorily required to be submitted online followed

by the hard copy of the proposal. The FIPB has the flexibility to examine all
the proposals in their totality, free from predetermined parameters or
procedures.
The recommendations of the FIPB with respect to proposals under the

ambit of the non-automatic route involving an investment of US$
218.18million or less is considered and approved by the Finance Minister.
Projects with an investment greater than this value are submitted by the
FIPB to the Cabinet Committee on Economic Affairs for further approval.
5.3. Regional and international trade agreements

Over the years, India has entered numerous bilateral and regional trade
agreements with key trading partners. Apart from offering preferential tariff
rates on the trading of goods among member countries, these agreements
also enable increased economic cooperation in the field of trade in services
as well as investments and intellectual property, resulting in enhanced trade
liberalization.
Existing trade agreements and regulatory scenario

Some of the existing key trade agreements entered into by India include:
• Comprehensive Economic Partnership Agreement (CEPA) with
Japan
• Comprehensive Economic Co-operation Agreement (CECA) with
Malaysia
• Comprehensive Economic Partnership Agreement (CEPA) with
Korea
• India-ASEAN Trade in Goods Agreement
• Comprehensive Economic Co-operation Agreement (CECA) with
Singapore
126 Investor Guide

• Free Trade Agreement with Sri Lanka (Trade in Goods)
• Agreement on South Asia Free Trade Area executed by India,
Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka
• Framework Agreement with Thailand
• Preferential Trade Agreement with MERCOSUR countries
[MERCOSUR is a trading bloc in Latin America comprising Brazil,
Argentina, Uruguay and Paraguay
• Preferential Trade Agreement with Chile
• Asia Pacific Trade Agreement with Bangladesh, Republic of Korea,
China and Sri Lanka
• Preferential Trade Agreement with Afghanistan
• Global System of Trade Preference with 46 countries
• India Bhutan Trade Agreement
• India Nepal Trade Treaty
• Economic co-operation agreement with Finland
127 Investor Guide

6
ENTRY OPTIONS IN INDIA

6 Entry options in India
Following structures are typically used by foreign investors in India:
6.1 Liaison office (LO)
Foreign corporations are permitted to open liaison or representative offices

in India, subject to obtaining specific approval from the RBI, to undertake
liaison activities on their behalf. These offices act as a communication
channel between the Head Office of foreign corporations and parties in
India. Such offices are normally established by foreign corporations to
promote their business interests by spreading awareness about their
products and also to explore opportunities to set up a more permanent
presence in the country.
A LO in India is permitted by the RBI to undertake the following activities:

• Represent the parent company or group companies in India
• Promote export and import from and to India
• Promote technical and financial collaborations between parent and
group companies and companies in India
• Act as a communication channel between the parent and Indian
companies
A LO is not allowed to undertake any business activity in India and cannot

earn any income in India. Expenses of such offices are to be met entirely
through inward remittances of foreign exchange from the head office outside
India.
Permission to set up a LO in India is initially granted for a period of three

years, which is likely to be extended from time-to-time. Upon expiry of the
validity period, LO may have to either close down or be converted into a
company in conformity with the FDI policy.
129 Investor Guide

6.2 Branch office (BO)
Foreign corporations can open branch offices to conduct business in India,
which require specific approval from the RBI. A foreign corporation cannot
undertake any activity in India that is not specifically permitted by the RBI.
A BO is permitted by the RBI to represent the parent/group companies and

undertake the following activities:
• Export and import goods
• Render professional or consultancy services
• Conduct research work for the parent company
• Promote technical and financial collaborations between Indian
companies and the parent or overseas group company
• Represent the parent company in India and act as buying and selling
agents in the country
• Provide IT services and develop software in India
• Render technical support for the products supplied by parent or
group companies
Normally, the BO should be engaged in the activity undertaken by the parent

company. A branch office is not allowed to carry out retail trading,
manufacturing, except manufacturing within SEZs, or processing activities in
India. Branch offices are allowed to be established in SEZs to execute
manufacturing and service activities in India without specific approval from
the RBI, subject to prescribed conditions.
A BO provides the advantage of ease-of-operation and uncomplicated

closure. However, since such operations are strictly regulated by exchange
control guidelines, a branch may not provide a foreign corporation with the
optimum structure for its expansion and diversification plans.
6.3 Project office (PO)

A foreign corporation that has secured a contract from an Indian company to
execute a project in India can establish a project office in the country without
obtaining prior permission of the RBI, provided:
130 Investor Guide

• The project is funded directly by inward remittance from abroad
• The project is funded by a bilateral or multilateral International
Financing Agency
• The project has been cleared by an appropriate authority
• A company or entity in India awarding the contract has been granted
term loan by a public financial institution or a bank in India for the
project
However, if the above criteria are not met, the foreign entity has to approach
the RBI's Central Office for approval.
6.4 Local Indian subsidiary companies
Foreign corporations can locate wholly-owned subsidiary (WOS) companies

in India in the form of private companies, subject to prescribed FDI
guidelines. Furthermore, foreign corporations can establish a joint venture
company with an Indian or foreign partner.
FDI in a company engaged in undertaking permitted activities is allowed

under the automatic route and does not require prior approval from the GoI
or the RBI. However, FDI in a company engaged in activities not covered
under the automatic route require prior government or FIPB approval.
As compared to branch, liaison and project offices, a subsidiary company

provides the maximum flexibility to conduct business in India. A company
can be funded through a mix of equity, debt (both foreign and local) and
internal accruals.
The exit procedure norms of companies are relatively more cumbersome in

comparison to the other forms of business
6.5 Limited liability partnership (LLP)
LLP aims to provide the benefits of limited liability to a company, and

simultaneously allow its members the flexibility of organizing their internal
management on the basis of mutual agreement. LLP is a corporate body and
legal entity that has perpetual succession and is separate from its partners.
The liability of the partners is limited to their agreed contribution to the LLP.
131 Investor Guide

100% FDI is permitted in LLP with prior approval of FIPB in sectors where
100% FDI is allowed under the automatic route. However, foreign
institutional investors/foreign venture capital investors are not permitted to
invest in LLPs.
Capital contribution by partner in a LLP should only be in the form of cash.

Furthermore, LLPs are not permitted to avail ECBs.
LLPs with FDI are not eligible to make any downstream investments. Indian
companies with FDI are permitted to make downstream investment in LLPs
only if both the Indian company and the LLP operate in sectors where 100%
FDI is permitted under the automatic route and no FDI-linked conditions are
attached.
Conversion of company with FDI into LLP is permitted only on prior approval
of FIPB or Government of India.
Taxation of LLP is similar to taxation of general partnership firms, whereby

the profits are taxed only in the hands of the LLP. Remuneration of individual
working partners and interest payment to partners are tax deductible within
prescribed limits, subject to conditions.
132 Investor Guide

7
INVESTMENT OPPORTUNITIES IN
TECHNICAL TEXTILES INDUSTRY
Investment opportunities in
7
Technical Textiles industry
7.1 Specific products / segment for investment opportunity
Segment / Present Expected Value proposition
Product Indian growth for
market next 5
size years
(CAGR)
Geosynthetics / ~ US$ 10 mn 25% + • Geomembranes find major application in landfills,

Geomembranes ash ponds, etc.
• Issue of waste management has received
increasing attention from public and government
over the years. With strict environmental
guidelines coming in force, landfill etc. utilizing
geomembranes will become a norm
• Currently all the demand is met through imports,
which attracts an import duty of ~ 30%
• Since domestic demand is not large enough as of

now and the technology level is high, Indian
investors need to explore possibilities of
international partnership with buyback
arrangements
Protective wear / ~ US$ 350 mn 15% • Indian armed forces have ~ 1.45 million active
Clothing for personnel and 2.20 million reserve personnel.
defense end-use Almost 25% of active are involved in high risk,
counter insurgency & special operations in super
high attitude areas and require protective
clothing.
• Despite a high demand, there are very few

private Indian players engaged in manufacturing
protective apparel for Defense use because of
significant R&D investments, long trial / approval
process and high technology input.
• It is advisable for Indian business houses to

initially go for a marketing partnership or
technology transfer with international suppliers
and then evaluate manufacturing in India.
134 Investor Guide

Segment / Present Expected Value proposition
Product Indian growth for
market next 5
size years
(CAGR)
Agro textiles / ~ US$ 10 mn 20-25% • Indian farm yield for most of the agri products are
Shade nets mostly below the global averages. Protected
cultivation has still not attained its expected
potential which can boost the productivity.
However, the working group on Horticulture and
Plantation crops for 12th Five year plan has
indicated a need of US$ 1,818 million for area
expansion programmes in integrated project
mode including protected cultivation.
• India has a potential demand of shade nets to

cover 100,000 Ha under shade nets, while
current penetration is hardly 7-8%
• The current market consumption is driven by

largely by government subsidy schemes. But, the
key success factor for a shade net manufacturer
will be the requirement of engaging with farmers,
famer groups, etc. at the grass root level to
educate them about the benefits and handhold
them for implementation
Automotive ~ US$ 12 mn 18-20% • The current production of passenger cars in India

textiles / airbag is ~ 3.1 mn units, out of which ~ 500,000 are
exported. Since 2005-06, the production has
fabric
grown at a CAGR of 16% whereas exports have
grown by 19% CAGR
• Increasing income and safety concerns have

seen increase in domestic sales of cars with
airbags in last few years. However the current
market size is still small. The demand can grow
tremendously by introduction of mandatory use
just like seat belts, but that may still be few years
away.
• Successful investment would need excellent

market and raw material linkages, while the
domestic market demand alone may justify plant
viability. Hence, this venture makes sense in
partnership with an international player
partnership with buyback arrangement.
135 Investor Guide

7.2 Industry's perception
i. “Advantage India” for investors in India's technical textiles sector
Shishir Jaipuria
Managing Director
Ginni Filaments Ltd.
India's technical textile sector is going through very exciting times at

present. On the demand side, with 1.2 billion population, expanding middle
class and urban population, higher disposable incomes, integration with
global markets and infrastructure growth are triggers for growth of the
sector. While on the supply side, low manufacturing costs, indigenous
availability of raw materials at competitive rates, availability of technology,
expansion of modern trade, Public Private partnership in infrastructure,
Government support to the sector (TUF, Technology Mission etc), are major
enablers. Hence, there are enough reasons for the investors to diversify into
technical textile sector.
Pradeep Deshpande
Head - Textile Machinery Division
Illies Engineering (India) Pvt Ltd
India today is in growth mode with all around growth in Infrastructure. The
infrastructure growth like, roads, air ports, has spurred demand for
Geotextiles, The continuous growth in Automotive sector has led to
increasing demands for Auto carpets, Headliners. The increasing disposable
income due to growth of middle class has led to improved life style.
Similarly increasing health awareness is contributing to Indians opting for
non-woven hygiene products. The growing medical tourism is also
contributing to increased demand for health care hospital products. The
packaging and soft luggage industry is creating demand for nonwoven and
coated materials. Furnishing and Hometex industry is growing in all major
cities creating demand for Mattress, Pillows, felts, Wipes, Carpets in home
and offices. Also the demand is increasing in sports ware with products like
shoes, interlinings, tents, Sleeping bags, parachute fabrics.
All the above factors offer an excellent opportunity for Indian investors since
the investments in manufacturing of Technical textiles of which Nonwovens
136 Investor Guide

are an integral part. Also this area is rather new to India and not much of
investment has been done so far.
Vikas Sharan
Vice President
A.T.E. Enterprises Private Limited
In my opinion, India currently is a nascent market for technical textiles, but

showing steady signs of growth and sustainability. This pace has to be
nurtured in order to make this market sustainable over a period of time when
it starts touching the lives of people and industries of this country in more
ways than one. The central as well as the state govt. introduced schemes
should offer a friendlier environment for the investors to feel secure about
their investments and support their endeavours by offering specialized
services to their marketing needs.
II. Segments/products in India offer highest growth and investment

potential
Shishir Jaipuria, Managing Director, Ginni Filaments Ltd.
We have seen significant growth in Meditex, Packtex, Geotex and Mobiltex

in last few years. Obviously the growth was seen in regions where these
segments were more evolved. However the past trends may not actually
reflect the future course of the growth as the technical textiles sector is yet
to show its full potential in the overall development scenario. I would say
that with the success stories reaching fast to other regions/sectors, they
would be replicated there too. I personally feel that Indutex and Protex will
have a brighter future. Looking to investment trends, western region namely,
States of Gujarat and Maharashtra and Southern Region, namely, Tamil Nadu
and Karnataka seem to have better investment potential.
V. Kannan
Vice President - Polymer Division
Reliance Industries Ltd
The potential for technical textiles in hygiene and agrotextile applications is

significant. India demonstrates potential of 22 billion pieces of sanitary
napkins, 28 billion pieces of baby diapers, PP non-woven single-use medical
137 Investor Guide

wear and hospital under pads for approximately 1 million beds, 1 billion
banana covers per annum, 4 billion grape covers per annum, 3 billion
Alphonso Mango covers, and 2.5 billion pomegranate covers. The Indian 60+
demographic is expected to reach a size of 198 million by 2030.
Low penetration, low per-capita consumption, untapped rural markets,

increase in senior population demographic, growing interests in India's
medical tourism sector, and increased awareness of health and hygiene are
some of the key factors driving the growth of these products. While
domestic manufacturers of hygiene products are limited, the country is still
predominantly reliant on imports. Nonetheless, with a growing population
and diversifying demographic, the potential for investors in these segments
of technical textiles is lucrative and significant.
Pradeep Deshpande
Head - Textile Machinery Division
Illies Engineering (India) Pvt Ltd
The segments like Automotive with products like Carpets, Headliners, filters
and railways with seating cushions bed roll and pillow covers, Hygiene
Segment with products like face masks, surgeon gowns, hospital under
pads, baby Diapers, Sanitary Napkins, Adult Diapers, cotton rolls are in
increasing demand.
In the Buildtex segment, products like hoardings, Tarpaulins, Awnings and

canopies are the potential ones. There is a high growth potential in packaging
and soft luggage from synthetic leather.
Vikas Sharan
Vice President
A.T.E. ENTERPRISES PRIVATE LIMITED
Till now, Packtex has seen the highest growth in the country, since
affordable technology (spun bond) has been made available to the Indian
entrepreneurs from the Chinese, thereby shunting the Europeans out from
this sector, barring specialised processes. But I see a big growth for the
converter segment now, since there is a big chasm between the roll good
manufacturers and converters.
138 Investor Guide

Personal hygiene is one area where a lot of emphasis and significance needs
to be directed, since this is population dependent and we as a country, have
it in all categories, whether it is babies, female population or adults/senior
citizens with bladder/bowel dysfunctions. Of course, a culture shift coupled
with awareness and disposable income are necessary to make it a success
for the years to come.
Another area is for needle punched products for filtration, automotives and
artificial leather. However, the cost of bringing in technology in this area is
much higher and hence, there still is skepticism in going in for a green field
project unless there is a JV or buyback involved. The few domestic
manufacturers who have been at it since many years, however continue to
keep working in this sector.
Coating and lamination also becomes a very important aspect of technical

textiles.
7.3 COE's perception

I. Predominant demand and supply scenario
ATIRA: Predominant supply and demand markets for composites are

Industrial filtration, geo textiles and thermal insulation. Most of the advanced
technical textiles are made of highly advanced fibres modified to meet the
end use application criteria. Mostly these fibres and sometimes the whole
products are being imported in India.
DKTE: Nonwoven material has wide range of application in all the twelve
sub-segments of Technical Textiles. In FY 2010-11, Spunbond showed
recorded growth over 9% where as overall nonwovens grew by 6%.
Asian market of nonwovens in 2011 was 2.6 million tones, out of which only
China contributed about 68% and Japan
China
stood second with 10% of the total 68%
production.
India consumes hardly 130 gram per capita Taiwan

5% India
nonwoven material where as it is Korea
7% Japan Other 6%
10% 4%
predicted by 2020 this will grow at 500
gram per capita with the rate of 13% per
year. Looking at changing life style and
139 Investor Guide

population, huge domestic potential lies in near future.
PSG: For Indutex segment, the predominant demand is for Belts (Power
Transmission, Material Conveyor), Tyre Cord Fabric, Coated Fabrics, Coated
Abrasives, \ Sound absorption and Acoustic materials, Automobile Carpets,
AGM Glass Battery Separator, Paper Making Felts, Filtration Textile products,
Ropes & Cordages.
SITRA: Surgeons' wear, operating drapes & hospital linen, wound

dressings/bandages, sutures, vascular grafts, artificial ligaments & tissue
scaffolds, hernia meshes, soft wipes, face masks, 3D Spacer fabrics as well
as a whole range of personal care disposables include Sanitary
napkins/tampons/panty liners for fem care, makeup removers & nail polish
removers, balls and buds for cosmetic applications, baby diapers, adult
incontinence diapers/under pads, – just to mention a few are all Meditex
products which have a demand in the market. Of the various end products
within Medical Textiles, it will be of interest to note that sanitary napkins and
surgical dressings contribute to two-thirds of the total market size. In times
to come, both production and consumption of Medical Textiles is likely to
increase and to sustain the momentum of growth, certain pro-active
measures may require to be put in place.
WRA: Today more than 40% of total manufacturing activities of many

industrialized countries comprise of technical textiles. Technical Textiles on
its own merit has an important place in material science along with micro –
electronics and bio-technology. CAGR of technical textiles in the west is
2.4% where as it is 6.5% in India & China as predicted by David Rigby's
Survey. Various MNC's and globally accepted brands like Nike, Adidas,
Reebok, Crocodile, La Coste, Target, Spencer, etc introduced efficient
sportwear and accessories and linked its functional properties to the fashion
aspects of such products.
Being a labour intensive sector about 15 million employment was generated

in EU in 2005 – over 5% of the EU labour force. US, Hongkong, China, U.K
have strong presence in Sportex market. Sports have boosted the
manufacturing industry in accelerating economics of countries like India and
China. Major products of Sportex sector are dominated by sports apparel
which constitutes around 50% of the total demand.
140 Investor Guide

ii. Measures for encouraging the growth of opportunities in these markets
ATIRA: Factors like the global economic change, strong government

support, introduction of appropriate legislation, development of tests and
standards and widespread recognition of the need for more trained
personnel, etc. also playing a valuable role in driving the industry to the
farthest destination.
PSG: Availability of data on quantum of requirement, product specification,

awareness of these products, incentives for manufacturing, market
segment, consumption details, financial support for new business start ups,
etc. are major areas for growth of opportunities
ii. Potential segment of Technical Textiles in India?
ATIRA: Considering the global economic and industrial climate, dry and wet
filtration of the industrial pollutants is going to play a major part. If the
government of India makes legislation for using geogrids to make roads and
highways to improve their life cycle then the field of geotextiles will be very
promising and lucrative.
DKTE: Disposal hygiene products and medical segment like personal care,
baby diaper and sanitary napkins, packaging industry, automotive industry,
industrial applications like filters, civil engineering applications like Geotex
material for road construction and erosion control.
WRA: Use of sporting gear is proportional to the per capita purchase power.
Besides, sports are treated as a recreational activity in India. With the rise in
income, spending on recreational and leisure activities also will rise. It is
predicted that expenditure on sports will grow with a CAGR of 8.9% from
US$ 1 billion in 2005 to US$ 6 billion in 2025. Sports and leisure activities
including adventure sports etc are gaining prominence in India as the
country is competing with a growing number of athletes and sports
personnel in the national and international sports events. Government of
India and many corporate sponsors are providing adequate funds and other
support for the sports and welfare of the sportspersons.
India is among the largest sports goods manufacturers of inflatable balls,

hard balls like cricket balls, cricket bats, etc. It has a large textile industry
141 Investor Guide

with good downstream manufacturing facilities. With the growth of
organized retailing, when international brands have entered the Indian
market, it will be but natural that indigenous consumers will demand similar
branded products from the domestic Sportex industries. Since various
centres have come up with sport equipment and accessories, Sportex
products belonging to technical textiles are bound to be developed sooner.
Technology has been percolating down from the global Sportex
manufacturers to Indian manufacturers. Many of the multinationals engaged
in the business relating to Sportex are setting up facilities in India due to the
advantage of low cost of production, skilled and cheap labour, etc.
SITRA: The size of Indian healthcare industry, during 2007-08, was pegged
at US$17 billion and the same was projected to grow at more than 17 % per
annum to touch a whopping US$ 36 billion by 2012-13, translating to a
contribution of some 8% of GDP, the factors responsible to this phenomenal
rise being the ones of increasing per capita spending on healthcare
products, greater exposure to international products in this area, importance
and awareness of healthcare insurance and medical tourism. Of this, the
share of revenue generation by Private hospitals was put at US$ 29.3 billion,
up by a near US$ 16.3 billion from the 2007-08 level of US$ 12.9 billion.
In a related development, Medical Textiles business, in all probability, was

expected to reach US$ 616 million during 2012-13 which is almost the
double its size of US$ 331 million for 2007-08.
iv. “Advantage India” for investors in India's technical textiles sector
ATIRA: Indian population could cater as the largest consumer of the

technical textiles in direct or indirect ways if approached properly, especially
with large part of the society comprising of middle class families with rising
income year on year.
PSG: Strong raw materials fiber base for natural and synthetic fiber.
Availability of technical man power, domestic consumption and COEs are
other key advantages
WRA: Growth of technical textiles in industrailised western countries has

been stagnating at 2.4% per year where as the CAGR in Asian countries
particularly China and India is forecasted as 6.5%. India with its strong
downstream textile industry has strong potential to grab a substantial share
142 Investor Guide

of the world market for technical textiles in the new decade. Growth of
organized retailing, over 250 million of middle class population with
disposable income, low cost of manufacturing and availability of skilled
manpower at relatively cheaper costs are the obvious advantages India has
over its competitors in this sector.
SITRA: In the last three years the Indian Textiles Industry has witnessed
several transitions from a global recession to unprecedented price volatility.
During the two years of economic slowdown, the industry showed
significant resilience in making a rapid turnaround, assisted by a series of
fiscal stimuli and Plan Schemes of the Government.
a. Capital subsidy under Restructured Technology Up-gradation Funds
Scheme (TUFS) for Technical textile machinery
b. Textiles parks under Scheme for Integrated Textile Parks (SITP)
c. About 14 functional special economic zones (SEZs) for textile-related
activities which provide for duty-free imports and domestic procurement
for 100% exports
d. Integrated Skill Development Scheme (ISDS) to address the skill gaps in
various segments of the textiles value chain.
e. Technology Mission on Technical Textiles (TMTT) for creating new COEs
with facilities like testing & evaluation of products, Resource Centre
with I.T. Infrastructure, incubation unit, recurring expenditure support for
hiring international experts; and provide support for new investments in
the sector, contract research
f. Foreign Direct Investment is permitted through automatic route without
any limit
Moreover, income of Indian consumer has been on the rise; the per capita
income has seen an increase from US$ 845 in the year 2009-10 to US$ 991
in 2010-11. The 'affordability factor' brought about by this upsurge is a good
enough reason to expect more discretionary spending on technical textile
products. With its one billion plus population, the Indian market offers
profitable and assorted opportunities for foreign exporters with the right
products, services, and commitment.
143 Investor Guide

7.4 Research and Development
Technical textile is a knowledge-based sector. Currently, the majority of the
market share in technical textiles is captured by less R&D-intensive
segments such as Packtex, Clothtex, Hometex and Sportex. Segments such
as Geotex, Oekotex, Agrotex, etc. demonstrate ample opportunities for
investments in R&D. To encourage R&D, the government is providing
assistance to the extent of US$ 0.04 million under TMTT scheme.
7.5 North East Regional projects in Geotex and Agrotex

Geotextiles are used most commonly in the transportation market for
construction of roadways because of their separation, reinforcement, and
filtration functions. Geotextiles are also used for hill and slope protection,
and for river bank erosion control. While traditional, existing efforts towards
maintaining developed infrastructure through relaying and repairs is
significant, these efforts insufficiently address the challenges to
infrastructure in the Northeast region of India. The government is thus
promoting usage of geotextile in the Northeast states with a budgeted
expenditure of US$ 90.91 million.
Agriculture is a key driver for India's economy. However, agricultural activities

are carried out mostly under natural conditions of temperature and humidity.
As a result of the absence of control factors, the country's producers face
various challenges including unsatisfactory yield, marred quality of produce,
damages to the produce, regional limitation on cultivation, and seasonal
limitation on cultivation. Use of agrotextile products like shadenets, bird
protection nets, windshields, etc. can help in addressing the problems that
the agriculture sector is facing. Given the significant vulnerability of the
agricultural sector in the Northeast, Government of India has proposed a
scheme with proposed expenditure of US$ 10 million to promote the
application and use of agrotextiles in this region of the country.
7.6 Skill development

Conducting joint promotion and training exercise with institutions, such as
involved in extension activities for farmers like agricultural universities, co-
operatives, agrochemical and fertilizer manufacturers, financial
144 Investor Guide

institutions/banks, on usage of Agro-textiles, provides ample opportunities
for stakeholders for skill exchange and knowledge transfer.
7.7 Integrated Textile Parks and Technical Textiles parks
Scheme for Integrated Textile Parks has been started by the Ministry of
Textiles, Government of India. The purpose of the scheme is seeking green
field investments in textiles sector on a Public Private Partnership (PPP)
basis with the objective of setting up of world class infrastructure for textiles
industry. It is estimated that the scheme would leverage an investment of
over US$ 1,636 billion and provide employment to 4,00,000 textile workers.
The product mix in these parks includes technical textiles which has been a
thrust sector for Ministry of Textiles.
India's technical textiles sector provides ample opportunities for

growth and investment. The government is encouraging
investments in technical textiles through business start-up
assistance under TMTT, which is provided to medium and small
enterprises in the form of cost support for preparing project reports
and handholding support for potential entrepreneurs till the
completion of the projects. Such assistance is available through
empanelled consultants under TMTT (as mentioned in following
sections).
… several attractive technical

Prashant Agarwal
Joint Managing Director,
product segments where
Wazir Advisors Indian investors can
venture…
Manufacturing of conventional textiles has moved from presence. This has to be the natural course of Indian textile
one part of the globe to another that was cheaper than industry to hedge against new emerging competitors and
previous. Today Asia is the manufacturing hub, tomorrow it command a better bottomline.
could be Africa. But an interesting point to see is that
“While the opportunities exists across the segments”, Mr.
despite this transition where US, Europe and Japan are no
Agarwal added “It is important for any investor to do a
longer leaders in conventional textiles; they are a major
thorough market assessment and go for business model
force in technical textiles manufacturing today also. On one
which will suit the current need but is flexible enough to
hand where technical textiles require significant R&D
foresee changes happening in future as well.”
inputs; it generates proportionally high returns and market
145 Investor Guide

8
KEY STAKEHOLDER IN TECHNICAL

TEXTILE INDUSTRY IN INDIA
Key Stakeholder in Technical
8
Textile industry in India
1. Ministry of Textiles
The Ministry of Textiles is responsible for the formulation of policy, planning,
development, export promotion and regulation of the textile sector in India.
This includes all natural, artificial, and cellulosic fibres that go into the making
of textiles, clothing and handicrafts. As of January 2013, the Union Minister
of Textile is Shri Anand Sharma. Secretary (Textiles) provides the leadership
and operational guidance to the Ministry of Textiles with the assistance of
four Joint Secretaries, Economic Advisors and Development Commissioners
for Handlooms and Handicrafts, Textile Commissioner and Jute
Commissioner.
The principal functional areas of the Ministry include:
• Textile Policy & Coordination
• Man-made Fibre/ Filament Yarn Industry
• Cotton Textile Industry
• Jute Industry
• Silk and Silk Textile Industry
• Wool & Woollen Industry
• Decentralised Powerloom Sector
• Export Promotion
• Planning & Economic Analysis
• Integrated Finance Matters
• Information Technology
Contact Ministry of Textiles:
Director (Technical Textile)
Ministry of Textiles
Room# 235, Udyog Bhawan,
New Delhi
T : +91-11-23010494
W : http://texmin.nic.in/
147 Investor Guide

2. Office of Textile Commissioner
The Office of Textile Commissioner formulates and implements various
schemes of the Government of India in an industry-friendly manner. The
major strength of this office lies in its very strong, technical and economic
wing, which is manned by professionally qualified and experienced officers.
In addition, this office has wide reach across India through its 8 regional
offices and 14 powerloom service centers in major textile clusters. The
regional offices coordinate with the head office to provide requisite technical
support to the industry to successfully meet the challenges of the globalised
economy.
Contact Office of Textile Commissioner:

Deputy Director (Technical Textile)
Office of the Textile Commissioner
New CGO Building, 48-New Marine Lines, Mumbai-400 020
T : +91-22-22003918
F : +91-22-22004693
E : [email protected] and [email protected]
W : www.txcindia.gov.in
3. COE: Meditex (SITRA)

With support from the Ministry of Textiles, SITRA has established Centre of
Excellence in Medical Textiles in the field of Technical Textiles. The COE is a
one-stop shop for addressing the issues and concerns of medical textile
fraternity. The COE has facilities for Research and Development, testing,
incubation, training and a well-endowed information resource centre for the
usage of the Industry stakeholders.
Contact SITRA:
Dr. Prakash Vasudevan, Director
P.B.No. 3205, Coimbatore Aerodrome Post,
Coimbatore - 641 014, Tamil Nadu, India.
T : 91-422-2574367-9, 6544188, 6541488
F : 91-422-2571896
E : [email protected]
W : www.sitrameditech.org.in
148 Investor Guide

4. COE: Protex (NITRA)
NITRA has been designated as Centre of Excellence for Protective Textiles
by the Ministry of Textiles, Government of India. The centre was established
with financial assistance from Ministry of Textiles, Government of India. The
basic objective of setting up of Centre of Excellence for Protective Textiles is
to promote Protex segment of technical textiles and to provide infrastructural
support and facilities at one place for the convenience of its manufacturers.
Contact NITRA:
Dr J V Rao, Director
Northern India Textile Research Association,
Sector-23, Raj Nagar, Ghaziabad-201002
T : 0120-2786434/451, 2783334/586/592/638/090/094
F : 0120-2783596
W : www.nitracoeprotech.org
5. COE: Agrotex (SASMIRA)

SASMIRA as the Centre of Excellence for Agrotextiles along with alliances is
working towards the demonstration, promotion, training, testing and
evaluation of Agrotextiles in the country at the behest of The Office of the
Textile Commissioner, Ministry of Textiles, Government of India.
Contact SASMIRA:
U K Gangophyay, Executive Director
The Synthetic & Art Silk Mills' Research Association,
Sasmira Marg, Worli, Mumbai - 400030
T : +91 - 022 - 24935351-52
F : +91 - 022 - 24930225
W : www.Agrotex.sasmira.org
149 Investor Guide

6. COE: Geotex (BTRA)
BTRA is recognized as a Centre of Excellence for Geotex by the Ministry of
Textiles, Government of India. BTRA established a new Geotex Laboratory
with testing facilities to test Geotextiles, Geomembranes, Geocomposites,
Gabions, Geosynthetic Clay Liner, Geogrids, Prefabricated Vertical Drain etc.
BTRA is also strengthening its information resources on Geotex by procuring
various books and international test methods such as ASTM, INDA, EDANA,
ISO, etc. Apart from testing & development, BTRA provides training to users
and entrepreneurs in Geotex as well as in technical textiles. Also
consultancy is provided to entrepreneurs to start a new manufacturing plant
for geosynthetics by preparing project proposal product wise.
Contact BTRA:
Dr. Ashok N. Desai, Director
The Bombay Textile Research Association, Lal Bahadur Shastri Marg,
Ghatkopar(W), Mumbai - 400 086
T : 91 - 022 2500 3651/2652/2117/1119/1135/7891/7892/2458
F : 91 - 22 - 2500 0459
E : [email protected], [email protected]
W : http://www.btraindia.com/Geotech.asp
7. COE: Composites (ATIRA)

Established on December 13, 1947 and started in 1949, ATIRA was
recognized by the Council of Scientific and Industrial Research under the
Ministry of Science and Technology, Government of India. It was later linked
to the Ministry of Textiles, and has been appointed as the COE Composites
at the behest of Ministry of Textiles, Government of India.
Contact ATIRA
Dr. A.K. Sharma, Director
Ahmedabad Textile Industry's Research Association,
P.O. Ambawadi Vistar, Ahmedabad - 380 015, India
T : (079) 26307921, 26307922, 26307923, 26305131, 26305132,
26303363 Extension: 350
F : (079) 26304677, 26301969
W : http://atira.in/COE/New_index.htm
150 Investor Guide

8. COE: Indutex (PSG)
PSG College of Technology has set up the COE in Industrial Textiles; this
segment of Technical Textiles has a wide range of products such as Conveyor
Belts, Automobile Textile, Filters etc. The COE is a one-stop shop for the
industry for everything related to Indutex field of Technical Textiles.
Contact PSG College of Technology:

Dr.G.Thilagavathi, Prof & Head, Department of Textile Technology &
Department of Fashion Technology
PSG College of Technology, Peelamedu, Coimbatore – 641004.
T : +91- 422-2572177, 2572477, 2580455, 2578455,
4344777 Ext: 4169
W : www.psgtech.edu/coeindutech
9. COE - Nonwovens (DKTE Society's Textile and

Engineering Institute)
Ministry of Textiles has appointed DKTE Ichalkaranji as the CoE for
Nonwovens. The COE is a one stop shop for the industry looking for
everything related to Nonwoven field of Technical Textiles.
Contact DKTE
Prof (Dr) P. V. Kadole
Rajwada, P.O.Box. No.130, Ichalkaranji, Kolhapur, Maharashtra - 416115
T : 0230 - 2421300,2432340, 2439557 to 59
W : www.dktes.com
10. COE Sportex (WRA)

WRA is also recognised as Centre of Excellence for Sportex and will have
facilities such as Modern Accredited Testing Laboratory, Prototype
Development plant and machineries, Incubation Centre, Resource Centre
with IT infrastructure, Training facility for HRD in Technical Textiles, Formation
of standards, specifications, norms, Sample Bank, Seminar, Workshops,
FGD, etc.
151 Investor Guide

Contact WRA:
M.K. Bardhan, Director
Kranti Surya Mahatma Phule (Akabar Camp) Road,
P.O. Sandoz Baug, Kolshet Road, Thane - 400607 India
T : 91-022-25314294/4305,
F : 91-022-25868365
W : http://wraindia.com/PRESS%20RELEASE.htm
11. Indian Technical Textile Association (ITTA)

To facilitate the growth of Technical Textile industry in India, the Office of
Textile Commissioner, Ministry of Textiles, Government of India recognized
the need to engage the industry's active participation to address the issues
and concerns and suggest policy framework that would lay the foundation
for this sector. This has led to the formation of ITTA, an industry think tank
that facilitates the usage and production of technical textiles in India, thereby
helping the industry grow internally and become a key player in the
international market.
Given that government policy has played a critical role in the advancement of
technical textiles, ITTA is expected to maintain close interaction with
Government of India in formulating a national technical textiles policy that
focuses on removing the ambiguities in the system that are hampering the
growth of the sector, help bring legislation that will help spur usage in India
and recommend fiscal and non-fiscal norms that will assist the industry in
achieving its true potential.
ITTA aims to become the premier organization for representing the

industry's interests and for creating a policy environment that assembles
and addresses the concerns of stakeholders in the technical textile sector.
ITTA would become an ideal forum for overseas and domestic companies to
explore the vast potential available for JVs, strategic and marketing alliances,
joint product development, etc, by organizing business meets with
delegates from various countries. ITTA will disseminate various policies,
market information and relevant statistics to its members.
152 Investor Guide

Contact ITTA:
Indian Technical Textile Association, 3rd Floor,
Sasmira, Sasmira Marg, Worli, Mumbai – 400 030, India
T : 022 – 24945372 / 24949983
W : http://www.ittaindia.org/
12. Federation of Indian Chambers of Commerce and

Industry (FICCI)
Established in 1927, FICCI is the largest and oldest apex business
organisation in India. Its history is closely interwoven with India's struggle
for independence, its industrialization, and its emergence as one of the most
rapidly growing global economies. FICCI has contributed to this historical
process by encouraging debate, articulating the private sector's views and
influencing policy. A non-government, not-for-profit organisation, FICCI is the
voice of India's business and industry. FICCI draws its membership from the
corporate sector, both private and public, including SMEs and MNCs, and
enjoys indirect membership of over 250,000 companies from various
regional chambers of commerce.
FICCI has a dedicated committee on technical textiles which works closely

with Ministry of Textiles in the cause for developing the technical textiles
sector in India. FICCI has organised buyer-seller meets, seminars,
conferences and Technotex 2011, the biggest event on technical textiles in
India. FICCI also helps Ministry of Textiles in identification of HS Codes for
Technical Textiles.
Contact FICCI:
FICCI, Federation House, Tansen Marg, New Delhi 110001
Phone: 91-11-23738760-70, 23708065
Fax: 91-11-23320714, 23721504
W : www.ficci.com
153 Investor Guide

13. Bureau of Indian Standards (BIS)
The Bureau of Indian Standards (BIS) is the national standards body working
under the aegis of Ministry of Consumer Affairs, Food & Public Distribution,
Government of India. It was established by the Bureau of Indian Standards
Act, 1986 which came into effect on 23 December 1986. The Minister in
charge of the Ministry or Department having administrative control of BIS is
ex-officio President Emaad Amin of the BIS. The organization was formerly
known as the Indian Standards Institution (ISI), set up under the Resolution
of the then Department of Industries and Supplies No. 1 Std.(4)/45, dated 3
September 1946. The ISI was registered under the Societies Registration
Act, 1860. One of the major functions of the Bureau is the formulation,
recognition and promotion of the Indian Standards. BIS is also working on
the standards for Technical Textiles with cooperation from Ministry of
Textiles.
Contact BIS:
W : www.bis.org.in
14. Project Management and Monitoring Consultant

(PMMC) for TMTT
Ministry of Textiles has launched TMTT to promote technical textiles in the
country. For effective implementation and attracting investments in the
sector, Ministry of Textiles has engaged Ernst & Young Pvt Ltd (EY) as
Project Management and Monitoring Consultant (PMMC). EY is providing it
services to Ministry of Textiles in consortium with Wazir Advisors.
Ernst & Young is a global leader in assurance, tax, transaction and advisory
services. Worldwide, our 141,000 people are united by our shared values
and an unwavering commitment to quality. We make a difference by helping
our people, our clients and our wider communities achieve their potential.
Wazir Advisors is a management consulting firm based out of India that

advises clients globally on business strategies, mergers and acquisitions,
joint ventures, funding and investments. Wazir is focused on the Indian
consumer segments like Fashion & Lifestyle, Food & FMCG, Education,
Media & Entertainment, Health & Wellness, Consumer Durables, etc.
154 Investor Guide

Contact PMMC:
Hemant Chaudhary Vikas Nigam

Ernst & Young Pvt. Ltd. Wazir Advisors Pvt. Ltd.
Golf View Corporate Tower B, 3rd Floor, Building 115, Sector 44,
Sector 42, Sector Road, Gurgaon, Gurgaon - 122 002 | National Capital
Haryana 122002, India Region | India
E : [email protected] E : [email protected]
M : +91 99999 87174 M : +91 97698 25350
W : www.ey.com/india W : www.wazir.in
15. FDI Cell to attract FDI in the textile sector

Ministry of Textiles has set up a FDI Cell to attract FDI in the textile sector in
the country.
Enquiries can be made to:

Deputy Economic Adviser, Ministry of Textiles
Room No. 550, Udyog Bhawan, New Delhi-110011.
T : +91-11-23061380
16. Synthetic & Rayon Textiles Export Promotion Council

(SRTEPC)
The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) was
established in 1954 by the Government of India, Ministry of Textiles. The
Council has its Head Office in Mumbai and Regional Offices in Delhi & Surat.
Membership at present is over 3500. Synthetic Rayon and Blended Textiles
items including fibres, fabrics and made-up items fall under the purview of
this Council. In order to help the Indian exporters and manufacturers to
compete successfully in the world markets, the Council renders assistance
as follows:
• Identify markets for their products.
• Introduce them to appropriate overseas importers.
• Assist them financially or otherwise in their efforts.
155 Investor Guide

• Advise them on situations in the different overseas markets by
conducting studies & surveys.
• Provide opportunities to give them and their products exposure in
the overseas markets by sponsoring their delegations and items.
• Advise them on import export policy and procedures.
• Resolve their problems about shipping and transport.
• Maintain liaison with the authorities to convey to them the
requirements of industry and trade and arrange adaptation of policy
framework accordingly.
Contact SRTEPC:
Head Office: The Synthetic & Rayon Textiles
Export Promotion Council
Resham Bhavan, 78, Veer Nariman Road,
Mumbai - 400020, India.
E. L. Paulo (Acting Executive Director and Director & Secretary)
T : (+91-22) 22048797, 22048690
F : (+91-22) 2204 8358 / 2281 0091
E : [email protected]; [email protected]
W : www.synthetictextiles.org
17. The Cotton Textiles Export Promotion Council of India

(TEXPROCIL)
Since its inception in 1954 as an autonomous, non-profit export promotion

body, TEXPROCIL has become the international face of Indian Cotton Textiles
successfully facilitating exports. For the foreign buyer, it has opened the
entire range of Indian cotton yarns, fabrics and made-ups and has become
the one-stop source for it. While for the discerning Indian seller it has
brought within reach the opportunities afforded by the global market. The
activities of TEXPROCIL extend to all areas related to the promotion of
exports. Collation and dissemination of information, fielding of trade
enquiries, administering quotas, facilitating an interface between domestic
manufacturers and the global market and settling of disputes are some of
the activities of the Council. One of the most important functions of
TEXPROCIL is the collection of vital market information and collation of the
156 Investor Guide

same. Information with regards to new products, new ranges, government
policies, rules and regulations, changing trends, quality standards, products
commanding greater demand in the global markets and statistics about the
exports of Indian cotton textiles are disseminated regularly. This not only
makes TEXPROCIL the premier repository of relevant information but also
provides the key inputs for both the Indian seller as well as the foreign buyer
in their respective efforts.
Contact TEXPROCIL
The Cotton Textiles Export Promotion Council
Engineering Centre, 5th Floor, 9 Mathew Road,
Mumbai 400 004, INDIA
T : (022) 2363 2910 to 13
F : (022) 2363 2914
W : www.texprocil.org.in
157 Investor Guide

9
WHERE TO APPLY FOR BENEFITS

UNDER GOVERNMENT SCHEME
Where to apply for benefits under
9
government scheme
Technical textile manufacturers can avail the following benefits under the
TMTT scheme:
a) Contract research
Investor may submit proposals for contract research (individually or

partnerships with other enterprise) for development of product, process and
technology in technical textile. The grant under TMTT scheme will be upto
60% excluding cost of land and building subject to ceiling recommended as
US$ 0.04 million per project. It is an initial ceiling and can be relaxed by the
empowered committee on merit. The guidelines for taking assistance under
TMTT are as follows:
• Research shall be jointly conducted by industry and a government-
approved research center, like TRAs, IITs, government-aided
institutions and recognized engineering colleges, etc.
• Industries need to register with Office of Textile Commissioner. The
format for registration is attached as Annexure - II. This one-time
registration makes the industrial unit eligible for various types of
assistance under TMTT, including contract research, market
development assistance or business start-up assistance
• Other operational modalities can be found in the TMTT scheme on
http://technotex.gov.in/TMTT%20book%20upload%2019012011.pdf
b) Market development assistance for export sales
Indian players may submit proposals for market development assistance for
participating in international exhibitions. Assistance would be permissible on
travel expenses by air, in economy excursion class fair and charges of the
built up furnished stall. This would, however, be to the extent of 50% with a
financial cap recommended at US$ 0.91 million per visit. The guidelines for
MDA are as follows:
159 Investor Guide

• Registration with Office of Textiles Commissioner as per the format
in Annexure - II
• The support under this scheme is restricted to two times for a
particular unit in a year
• Submission of an intimation application for participating in the
exhibition as per Annexure - III
• Other operational modalities can be found in the TMTT scheme on
http://technotex.gov.in/TMTT%20book%20upload%2019012011.pdf
c) Business Start-up Assistance
Business start-up assistance is provided only to SME units. Empanelled

consultants under TMTT will provide assistance in the preparation of project
reports, and provide handholding support to potential entrepreneurs till the
completion of the projects. A list of empanelled consultants is as follows:
S. Name of the Contact E-mail ID Telephone Address

No. Consultant Person Nos.
1 M/s. K's Shri [email protected] +91 265 B2, Sandalwood

Technical & Ravishankar 2782245 Apartments, 22,
Management +91 Pratapgunj
G
Consultants 9825244940 Area, Opp.
Rosary School,
P O Box No.
2083, Fatchgunj
P.O. Vadodara
390002,
Gujarat.
2 M/s. Mr. Amit [email protected] +91 124 4th Floor, Tower

Technopak Gugnani 4541111 A, DLF Building
Advisors Pvt 91 8, DLF Cyber
Ltd, 9871755992 City, Phase - II,
Gurgaon - 122
002.
160 Investor Guide

S. Name of the Contact E-mail ID Telephone Address
No. Consultant Person Nos.
3 M/s. Gherzi Shri A B [email protected] +91 22 Wing A, Raheja

Eastern Ltd. Telasang 67.339400 Point I, Pt.
+91 Jawaharlal
9867770037 Nehru Road,

Vakola,
Santacruz (E),
Mumbai - 400
055.
4 M/s Nuovatex Shri Munish [email protected], +91 11 A1/312,

Projects Co. Tyagi [email protected] 41354681 Sajdarjung
+91 Enclave, New
9811253332 Delhi - 110 029.
5 M/s. Suvin Shri Avinash [email protected], +91 22 7th Floor,

Advisors Pvt Mayekar [email protected] 67220000 Amfotech, Opp
Ltd. +91 93 MIDC
22906199 (VARDAN),(Old
Passport Office),
Wagale
Estate,Thane
West - 400 604,
Mumbai.
For any further clarifications / queries, kindly contact the undersigned:
Abhishek Choudhury Vikas Nigam

Ernst & Young Pvt. Ltd. Wazir Advisors Pvt. Ltd.
Golf View Corporate Tower B, Sector 42, Sector 3rd Floor, Building 115, Sector 44,
Road, Gurgaon, Haryana 122002, India Gurgaon - 122 002 | National Capital
T : 91 90295 38610 Region | India
E : [email protected] T : 91 97698 25350
W : www.ey.com/india E : [email protected]
w : www.wazir.in
161 Investor Guide

10
OTHER TECHNICAL TEXTILE

PUBLICATIONS
10 Other Technical Textile publications
Baseline survey of Technical

Compendium on Centres of
Handbook on Geotextiles textiles industry in India
Excellence
March 2009
White Paper on Foundation

of Regulation in respect of Standards Compendium Technotex 2011 report
Safety Industrial Work Wear
163 Investor Guide

Annexure - I
Annexure to Policy Circular No. 42 (RE-2010)/2009-14, dated 21 October, 2011
ITC HS Codes Woven fabrics obtained from high tenacity yarn of nylon or other
polyamides or of polyesters:
Unbleached:
5407 10 11 Parachute fabric
5407 10 12 Tent fabrics
5407 10 13 Nylon furnishing fabrics
5407 10 14 Umbrella cloth panel fabrics
5407 10 15 Other nylon and polyamide fabrics (filament)
Bleached:
5407 10 25 Other nylon and polyamide fabrics of filament yarn
Dyed:
5407 10 31 Parachute Fabrics
Printed:
Other:
5407 10 91 Parachute fabrics
164 Investor Guide

ITC HS Codes Woven fabrics obtained from high tenacity yarn of nylon or other
polyamides or of polyesters:

Woven fabrics obtained from strip or the like:
5407 20 10 Unbleached
5407 20 20 Bleached
5407 20 30 Dyed
5407 20 40 Printed
5407 20 90 Other
Fabrics specified in Note 9 to Section XI:( of man-made fabrics, impregnated,
coated, covered or laminated with plastics)
5407 30 10 Unbleached
5407 30 20 Bleached
5407 30 30 Dyed
5407 30 40 Printed
165 Investor Guide

Annexure - II
Format for obtaining the registration for technical textile units under
Technology Mission on Technical Textiles (TMTT) from Office of the
Textile Commissioner
1 Name and full address of unit

Name of the Managing Director
Tel. No. :
Fax :
E-mail :
Website address:
2 Annual Turn over
3 Whether SME / Non-SME
(supporting documents to be enclosed)
4 Details of products produced/proposed to
be produced
5 Details of Products Exported and
exporting
country (in case of Exporter)
6 End use applications of Products
7 Details of existing Machinery
8 Name and address of the lending agency
along with Tel., Fax and e-mail (in case of
units applying for Business start up)
9 Name of the intervention of TMTT under □– Support for Business Start-up
which the registration is requizred (for engaging Empanelled Consultant for any
(Please tick the appropriate intervention(s)) new technical textile projects in MSME
sector)
□– Market Development Support for Export sales
(for participation in foreign technical textile
trade fairs)
□– Market Development Support for Sale to
Institutional Buyers
(for participation in technical textile buyer-seller
meet in India)
□– Support for Contract Research
(for research work in technical textiles field in
collaboration with government recognised
research organisations / institutes)
Place: Authorised Signatory

Date: Name:
Company Seal: Designation:
166 Investor Guide

Annexure - III
Application Form For participation in Technical Textile Trade
Fair/Exhibition under Market Development support
1. Name of the firm with full address.
2. Particulars of fair/exhibition
Trade Delegation:
Name of event:
Place:
Country:
From……………………………… To ……………………………………………
3. Particulars of visit
Date of departure from India
Date of arrival in India
4. Details of proposal(s) already Submitted in the same financial year.
5. Details of earlier participations in the same event with assistance from the scheme.
6. Name and designation of the person going abroad
Place: Authorised Signatory

Date:
167 Investor Guide

Annexure - IV
Format for Contract Research Proposal
1. Project Title
2. Broad area of Research
3. Project Duration in Months
4. Total Cost (Assistance under the scheme & Contribution of Industry
Partners)
5. Project category
6. Details of Industry Partner
7. Research Team
8. Place of Research
9. Project Summary
10. Technical Details
• Introduction (Origin and Definition of the proposal, objectives)
• Review of the status of Research and Development in the subject.
(National and International status, Importance of the proposed
project in the context of the current status, Expertise available
with the investigating group/Institution in the subject of the
project, Patent details)
• Work plan (Methodology, Organisation of work elements, Time
schedule of activities giving mile stone)
• Suggested Plan of Action for utilisation of research outcome
expected from the project (Expected product/process outcome,
target market, expected income from the research outcome)
11. Budget Estimates Summary
(Budget for Scientists man days, Justification for the man power
requirement, budget for Raw materials/consumables, Justification for
costly consumables, Budget for travel, Justification for intensive travel,
168 Investor Guide

if any, Budget for other costs/contingencies, Justification for specific
cost under other costs, if any, Budget for equipment, Justification for
the proposed equipment)
12. Time Schedule of Activities through BAR Diagram
13. List of Facilities being extended by parent institution for the project
implementation (Infrastructural facilities, Machineries/Instruments
Available with the Institute/Group/Department/other Institutes for the
project)
4. Detailed Bio data of the Investigator(s)/ Co- Investigator(s) including
name, address, date of birth, Institution's address etc. Academic
Qualifications (University/College from where attained, year of Passing,
Thesis title, etc)
Authorised Signatory Authorised Signatory

Unit Agency
169 Investor Guide

Acknowledgements
We would like to express our sincere gratitude for their valuable inputs:
1. K Ramachandran Pillai, CMD, National Textile Corporation Limited
2. Sudhir Mathur, Chief Scientist, CRRI, New Delhi
3. Perry Vyas, President, SKAPS Industries
4. Pradeep Deshpande, Head - Textile Machinery Division, Illies
Engineering (India) Pvt Ltd
5. Vikas Sharan, Vice President, A.T.E. Enterprises Private Limited
6. Sarojit Malik, Managing Director, Access International Capital, LLC
7. Shishir Jaipuria, Managing Director, Ginni Filaments Ltd.
8. Siddharth Y. Kusumgar, Managing Director, Kusumgar Corporates Pvt.
Ltd
9. V. Kannan, Vice President - Polymer Division, Reliance Industries Ltd
10. Bombay Textile Research Association
11. South India Textile Research Association
12. Northern India Textile Research Association
13. Synthetic & Art Silk Mills' Research Association
14. DKTE Society's Textile & Engineering Institute
15. PSG College of Technology
16. Ahmedabad Textile Industry's Research Association
17. Wool Research Association
170 Investor Guide

Disclaimer:
The report has been entirely authored by EYPL and Wazir Advisors. FICCI
and its members or Ministry of Textiles shall not be held accountable in any
manner for any kind of information presented in this report.
This publication contains information in summary form and is therefore
intended for general guidance only. It is not intended to be a substitute for
detailed research or the exercise of professional judgment. Neither EYPL,
Wazir Advisors nor any other member of the Global EY organization accepts
any responsibility for loss occasioned to any persons acting or refraining
from action as result of any material in this publication. On any specific
matter, reference should be made to the appropriate advisor.
171 Investor Guide

CONTACT DETAILS
FICCI Ministry of Textiles
Ms. Nisha Goel Room# 235, Udyog Bhawan, New Delhi
Senior Assistant Director W : http://texmin.nic.in/
FICCI, Federation House, Tansen Marg, T : +91 11 23010494
New Delhi-110 001 PMMC for TMTT
T : 011- 23708065 (Direct), Hemant Chaudhary
23738760-70 (Ext. 450) Ernst & Young Pvt. Ltd.
F : 011-23320714 Golf View Corporate Tower B, Sector 42,
E : [email protected] Sector Road, Gurgaon,Haryana 122002, India

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TECHNOTEX

Driving Growth of Technical Textiles

Shishir Jaipuria, Managing Director, Ginni Filaments Ltd.

In the three decades of my professional experience as Civil Engineer, I have

Infrastructure is India's biggest requirement. Geosynthetics is an integral

Product innovation or improvement is the mother's milk for long term

The current investment in the country with respect to technical textiles is

Developed countries have already reached a level of near saturation in

Siddharth Y. Kusumgar, Managing Director, Kusumgar Corporates Pvt. Ltd

1.2 Technical Textile consumption 14

1.3 Growth enablers 16

1.5 Major Investments in the Last Few Years 19

2. Resource availability in India 22

2.2 Centres of Excellence (COEs) 24

2.4 Skill set availability 34

2.5 Raw material availability 37

3. Standards for Technical Textiles industry 40

H. Madhya Pradesh 117

5.1. Foreign Direct Investment Policy in Textiles 125

5.2. Foreign Investment Promotion Board (FIPB) 126

6.3 Project office (PO) 130

6.5 Limited liability partnership (LLP) 131

7.3 COE's perception 139

7.5 North East Regional projects in Geotech and Agrotech 144

7.6 Skill development 144

Conversion rate considered:

1.1 Sector overview

• Shade-nets • Architectural Membranes • Shoe lacesInterlinings • Geogrids

AGROTEX BUILDTEX CLOTHTEX GEOTEX

• Fiberfil • Filtration Products • Diapers • Seat belt webbings

HOMETEX INDUTEX MEDITEX MOBILTEX

OEKOTEX PACKTEX PROTEX SPORTEX

1. Agrotex (Agriculture, horticulture and fishing):

• Shade nets: Garware Wall Ropes, CTM Agrotextiles Ltd., Rishi

2. Meditex (Medical and Hygiene Textiles)

India's meditex segment is expected to grow at a rate of 20% to US$

3. Buildtex (Construction – Building and Roofing)

India's Buildtex segment is expected to grow at a rate of 17% to US$

4. Mobiltex (Automotive Textiles)

Automotive applications (cars, trucks, buses, trains, ships and

The Mobiltex segment's growth depends largely on the growth of the

5. Clothtex (Clothing Components)

The Indian Clothtex segment is expected to grow at a rate of 22% to

6. Oekotex (Ecological Protection Textiles)

Growth of this segment depends upon the inclination of an economy in

Geotextiles products include geogrids, geonets, geopipes, geocells,

The Indian Geotex segment is expected to grow at a rate of 22% to US$

8. Packtex (Packaging and containment):

The Indian Packtex segment is expected to grow at a rate of 22% to

• Raffia: Texplast Industries, Tulsyan NEC, Rishi Techtex for Raffia

9. Hometex (Home textiles):

The Hometex segment of technical textiles comprises the textile

10. Protex (Protective and safety clothing and textiles):

The Indian Protex segment is expected to grow at a rate of 23% to US$

11. Indutex (Industrial products and components):

The Indian Indutex segment is expected to grow at a rate of 18% to

• Decatising Wrapper: Bombay Dyeing, JKT Fabrics and Noor Textiles

12. Sportex (Sport and leisure):

The Indian Sportex segment is expected to grow at a rate of 17% to