Maharashtra Integrated and Sustainable Textile Policy 2023-2028

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Maharashtra Integrated and Sustainable Textile Policy 2023-2028


To enhance the growth of the State Textile Industry and to provide handholding support to the Textile Industry with necessary interventions, the Government of Maharashtra released the “Integrated and Sustainable Textile Policy” for a period of 5 years. The proposal for approval of the Integrated and Sustainable Textile Policy 2023-28 was tabled in the Cabinet meeting on 30 May 2023 and as per the approval, the Government Resolution has been issued.

Integrated and Sustainable Textile Policy of the State is in line with the 5F vision of the Government of India- Farm to Fiber to Factory to Fashion to Foreign. The policy envisions integrating the whole textile value chain and creating an enabling environment for sustained growth of all sub-sectors in the industry. The policy will strengthen the supply chain management of the textile sector and effectively disseminate information to all the stakeholders on ground to make them aware about the provisions and incentives in the policy. The Government will encourage sector-wide collaborations to accelerate a just transition towards sustainable textile value chain through 3-R model viz Reduce, Reuse and Recycle.

Period of the Integrated and Sustainable Textile Policy 2023-2028 - 1st June, 2023 to 31st March 2028

Objectives of the Integrated and Sustainable Textile Policy 2023-2028

  1. Increase the processing capacity of cotton from 30% to 80% in the next 5 years.
  2. Promote state of art infrastructure and technological upgradation to promote textile value chain in the State.
  3. Policy envisages attracting investment of INR 25,000 crore and employment generation up to 5 lakhs in next 5 years.
  4. Provide additional financial incentives to promote women empowerment and bring gender balancing in the textile industry by encouraging participation of women at all levels of management in textile industry.
  5. Provide support for skill development and capacity building to ensure availability of skilled manpower to textile industry and increase employability in the sector.
  6. Development of six (6) Technical Textile Parks in the State by encouraging private investment.
  7. Promotion of Research and Development and Innovation to promote environment friendly processes/ technologies in textile sector.
  8. Creation of Maharashtra Technical Textile Mission for promotion of technical textile sector.

Types of Incentives provided in the Integrated and Sustainable Textile Policy 2023-2028

  1. Capital Subsidy for New and Expansion Units
  2. Electricity Subsidy
  3. Technology Upgradation Fund
  4. Subsidies for Green Technology

Incentives are provided for the following Sub-sectors  

  1. Ginning and Pressing
  2. Co-operative Spinning Mills with Govt Equity
  3. Private Spinning Mills
  4. Co-operative Power Looms with Govt Equity
  5. Private Power Looms
  6. Processing Sector
  7. Knitting, Hosiery and Garmenting
  8. Non Conventional Yarn / Fiber and Synthetic Yarn / Fiber
  9. Technical Textiles
  10. Green Technologies
  11. Textile Parks
  12. Technical Textile Parks

Period of Disbursement

The period of disbursement of capital subsidy and the Maha Technology Upgradation Fund Scheme is as follows:

In both the above schemes, the capital subsidy will be paid after the project comes into production. This will be paid in two installments:

  1. 1st installment: 60% of eligible amount after 12 months.
  2. 2nd installment: 40% of eligible amount after 24 months.

The disbursement of Solar Power Plant subsidy will be provided in 2 equal installments (with a gap of six months between the installments) post the operationalization of solar power plant.

Important definitions and points to remember

  1. Eligible Machinery: Machinery eligible under centrally sponsored TUFS scheme (including any subsequent modifications by the Central Government to these schemes) or machinery approved by the State Government. (Only new machinery will be considered for incentives. Old/ refurbished machinery will not be considered)
  2. Fixed Capital Investment (FCI): Fixed capital investment will include the basic cost of plant and machinery. This will not include the cost of land and building construction. The detailed project report (DPR) of the new textile unit will include the cost of setting up the solar power plant up to a maximum limit of 4 MW (excluding land and building construction) in the eligible plant and machinery, for calculating the capital subsidy payable.
  3. Technical Textiles: Such textile production which is aimed not only at fabric production but also at creating products which could be used in the industrial, defense, research and other advanced sectors due to its specialized technical properties. These products are classified into following categories based on their quality and end use: (1)Agro tech, (2) Build tech, (3) Cloth tech, (4) Geo tech (5) Home tech, (6) Ind tech , (7) Medi tech, (8) Mobile tech, (9) Echo tech, (10) Pack tech, (11) Pro tech (Protective textile) (12) Sport tech, (13) Defence tech, (14) Products announced by Textiles Ministry of Central Government from time to time.
  4. Technology Upgradation- It means induction of new machinery by an entity engaged in the textile industry with state-of-the-art technology as specified by the State Government Resolution from time to time. Technology lower than the specified one will not be treated as Technology Upgradation.
  5. MAHA-TUF Scheme: MAHA-TUF Scheme of Government of Maharashtra as amended from time to time. The Department will form a committee which will recommend the list of machinery to be considered eligible under MAHA-Technology Upgradation Fund Scheme.
  6. The total amount of subsidy to any unit/enterprise will not exceed 100% of FCI including the incentives given by the Central Government and other departments of the State Government.

Our Unique Services

  1. Preparation of Detailed Project Reports (DPR)
  2. Layout Drawings
  3. Facilitating various permissions required from various Govt. Departments
  4. Error free application processing for various subsidies and incentives
  5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
  6. Advisory on Purchase of Machinery / Technology and Civil works


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