Jharkhand’s textile policy expired in September 2023, and a new policy is yet to be implemented. The proposed draft includes land and capital subsidies, tax exemptions, and job incentives. The delay is affecting new investments, but the policy is expected to launch soon after cabinet approval.
Jharkhand’s textile industry is currently without a dedicated government policy, as the state’s Textile Policy expired on 18 September 2023. Although the Department of Industries had promised to introduce a new and improved version, it has not yet been officially launched. The absence of a clear textile policy is causing delays for entrepreneurs and investors who wish to start or expand textile-related units in the state. In response, industry bodies like the Jharkhand Chamber of Commerce have raised concerns and requested the government to bring a new policy at the earliest.
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The Background of the Expired Policy, After Extensions
The state’s first Textile Policy was introduced in 2016, with an initial term up to 18 September 2021. It was then extended twice once until September 2022 and then again until September 2023. Since then, no new policy has been notified, leaving a gap in formal support for the sector. Official Sources from the Department of Industries confirmed that the draft of the new textile policy is under preparation. Policies from other states have been studied and considered during the drafting process to make Jharkhand’s policy more competitive and business-friendly.
What’s in the Proposed New Policy?
According to internal sources, the new policy is expected to retain most of the key features of the earlier policy, with some improvements and simplifications. Here’s what the draft proposal includes 50% Discount on Land Cost. Entrepreneurs will be allowed to pay the discounted amount over 10 equal installments across 5 years. Capital Subsidy of 20%, with a maximum limit of Rs. 50 crore per project. 100% Exemption on Stamp Duty and Registration Fees for setting up textile units. A one-time Rs. 13,000 per worker will be provided for employee training and skill enhancement. Other Employment Subsidies including Rs. 6,000/month for each female employee and Rs. 5,000/month for each male employee for a continuous period of 7 years. These incentives are designed to attract new textile industries to Jharkhand and to support employment, especially for women.
The draft of the new policy is currently with the Department of Industries and is awaiting final approval from the state cabinet. Once approved, it is expected to be notified and implemented immediately. The announcement of the new textile policy is likely in the coming months.
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Focus on Textile Parks and Women Employment
Alongside the policy, the Government is also considering the development of a dedicated Textile Park to encourage large-scale investment in the garment and fabric industry. The park will serve as a hub for manufacturing, processing, and training activities. Additionally, the policy aims to promote women’s employment, offering extra subsidies to companies hiring female workers. Currently, firms receive Rs. 1,000 more per month for female employees compared to male workers.
Why the Policy is Important Now?
Jharkhand has the potential to emerge as a textile hub due to its skilled workforce, available land, and strategic location. However, the lack of a clear textile policy for nearly 10 months has slowed investment interest. Entrepreneurs are waiting for the policy to be implemented to move forward with their plans. Industry experts believe that the timely launch of the new policy will not only attract investment but also generate thousands of jobs, especially in semi-urban and rural areas.
