The government has committed Rs 1,000 crore (Rs 10 billion) for development of 25 textile and apparel production centres throughout India in next three years.
"Though we have set no limits. We have set a target of development of 25 production clusters throughout India in next three years," Textile Minister Shankersinh Vaghela said.
This would be done after merging the two existing schemes - Textile Centres Infrastructure Development Scheme and Apparel Parks for Export, Textile Secretary R Poornalingam said.
As part of the scheme the government would provide a subsidy of 40 per cent up to a maximum of Rs 40 crore (Rs 400 million) for the development of infrastructure at these culsters, he said, adding the scheme would infuse much-needed additional capacity in the textile sector.
Earlier schemes were government-led but under the new order the entrepreneurs would have to take an initiative for setting up the clusters.
They would have to contribute equity for the clusters while the government would just provide subsidy for infrastructure.
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