Karnataka - Belgaum   

Textile sector in Belgaum may get a boost

Belgaum: The border district of Belgaum, with over 50,000 powerlooms (including unregistered units), is one of the major textile centres in the State.

The district is known for what are known as “Belgaum saris” which are sold under different brand names. Over 30,000 people are directly dependent on the powerlooms in the district. There are also readymade garment units, including export oriented, besides those manufacturing Khadi cotton products.

However, due to lack of adequate market, government support and technological upgrading of the units, the sector has been facing crisis for the last 10 years. However, the decision of the BJP Government to provide loan at 6 per cent interest rate to weavers has come as relief for them.

Yet, very little has been done to create new markets or enable weavers to have direct access to markets. As a result, weavers continue to be exploited by middlemen.

Now, in the last quarter of the current financial year, the Department of Handloom and Textiles has announced to train 1,000 unemployed people in the district in various skills pertaining to textile/readymade garment industry, so as to enable them to get employment in the textile sector, which is expected to grow, as envisaged in the textile policy “Suvarna Vastra Neethi: 2008-13”.

According to official sources here, the policy was evolved with a vision to establish Karnataka’s textile and garment industry as a producer of internationally competitive value-added products and thereby maintain dominant presence in growing domestic and international markets and contribute to economic growth in the State.

The prime objective of the police is achievement of balanced, higher sustainable growth in the entire textile value-chain from fibre to finished products, with emphasis on balanced regional development. Also, the policy aims to increase income levels of people dependent on small and medium enterprises (SMEs) within the sector and to create employment opportunities to at least five lakh people during the policy period of five years. Accordingly, 1,000 youths will be trained in the district.

Sources said the Government was expecting an investment of Rs. 10,000 crore during the policy period, including Rs. 1,000 crore in 2008-09 and Rs. 1,500 crore in the following year.

With a view to reduce regional imbalances and promote employment and growth in backward areas of the State, the policy focuses on geographical dispersion of both textile and garment units.

Accordingly, the Government has classified the State into three zones: Zone-1 taluks will receive maximum incentives, Zone-2 taluks will receive “normal” incentives and Zone-3 taluks will receive fewer incentives.

Of the 10 taluks in Belgaum district, Athani, Gokak, Savadatti, Raibag, Bailhongal, Ramdurg and Hukkeri have been included under Zone-1 and Belgaum, Khanapur and Chikkodi under Zone-2.

The textile units are entitled for credit-linked capital subsidy.

The Zone-1 units are entitled for 20 per cent subsidy on the value of fixed assets or Rs. 20 lakh, whichever is less. There will be an additional subsidy of 5 per cent or Rs. 5 lakh, whichever is less, for units within the designated textile parks, and same amount for units established by persons belonging to Scheduled Castes, Scheduled Tribes or minority communities; persons with disabilities, ex-servicemen or women.

For the Zone-2 units, the subsidy component will be 15 per cent or Rs. 15 lakh, whichever is less. They will also get the benefit of additional subsidy as granted for Zone-1 units.

Sources in the department said that training would be provided to 500 people in powerlooms; 300 people in tailoring/stitching for manufacture of readymade garments and 200 people in embroidery art.

Those with minimum seventh standard pass and in the age group of 18 to 35 are eligible. Those interested may contact the office of the Deputy Director here or call Ph: 0831-2407237.

Selected candidates will be given stipend of Rs. 2,000 during the training period.

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