Gandhinagar, Aug 23 (KNN) The Gujarat government has decided to undertake a survey to look into the issue of textile units moving out of Gujarat to the neighbouring states, reported TOI.

After receiving representations from elected representatives, the industries and mines department has been asked to conduct a survey of industries, especially those based in Surat and the districts surrounding it, that are moving to Maharashtra and other states. 

“The government is expected to make policy corrections to ensure that industrial units do not move out to obtain greater benefits elsewhere. This is being done to create a conducive atmosphere ahead of the forthcoming Vibrant Gujarat Global Summit (VGGS),” reported TOI quoting government sources.

Some areas where policy corrections are expected are the minimum investment required to obtain incentives, the capital investment subsidy, net SGST reimbursement, electricity duty exemption, environment friendly incentives, stamp duty exemption or reimbursement, benefits for fibre-to-fabric units and the minimum investment required in textile parks.

Other states such as Maharashtra offer more lucrative policies for the textile sector. This has led to units shifting there. “Policy corrections will be announced soon in this regard. The state’s industrial policies are among the most competitive in the country, and certain changes will be made if needed,” an official said. 

The textile task force of the Gujarat Chamber of Commerce and Industry (GCCI) recently submitted a report to the state government, stating that the textile sector policies of states such as Telangana, Maharashtra and Madhya Pradesh are more attractive than that of Gujarat.

The Gujarat Textiles Policy will expire in December and no replacement has been announced for the Gujarat Garments Policy, which expired in 2022, industry sources say.  (KNN Bureau)