The Odisha Apparel Policy, 2016.

 
EXTRAORDINARY 
   PUBLISHED BY AUTHORITY 
No. 2251,  CUTTACK, WEDNESDAY,  DECEMBER 07, 2016/ MARGASIRA 16, 1938 
[ No. 5205–I Tex-03/2016/HTH.] 
 HANDLOOMS, TEXTILES & HANDICRAFTS DEPARTMENT 
RESOLUTION 
The 29th November, 2016 
SUBJECT:  Odisha Apparel Policy, 2016 . 
The Apparel industry holds promise for Odisha on tw o counts, that globally it is a 
fast expanding and growing market and that it has an incomparable employment potential. 
Odisha complements the requirements of the Apparel sector with its capacity for 
skilled workforce, predominantly women; and its thr ust on creating an investor-friendly 
industrial environment. 
The Industrial Policy Resolution (IPR), 2015 deline ates Textile and Apparel as a 
Priority Sector and lays down a number of incentive s. These benefits may be availed in 
addition to this Policy. However, benefits under no other Sectoral/ MSME Policy of Govt. of 
Odisha will be applicable if benefits under this Po licy are availed. There will be no bar to 
avail benefits under any Govt. of India Policy.  
In  addition, to further enhance opportunities whil e at the same time encouraging 
responsible, green-field, quality conscious, prefer ably export oriented growth, the Odisha 
Apparel Policy, 2016 has been formulated in a condensed yet industry-suitable manner. 
In its logic and derivation, it takes into account all the broad requirements of the 
Apparel industry. However, while offering benefits/ incentives, it lays down just three 
clauses to ensure smooth interface between industry and Government. 
All processing under this policy including transfer  of incentives will be done 
transparently through online systems. Evaluation an d monitoring processes are laid down 
in the Standard Operating Procedures (SOP). 

2 
 
The Odisha Apparel Policy, 2016: 
1. Incentives Offered:       
For Apparel Units, this policy will be applicable to n ew units which are 
approved by Competent Authority and commence commercia l production 
before 31st December, 2020.  
2. Definitions: 
i. Garment/Apparel/Made ups: Wearable or non wearable stitched fabrics of which 
at least two sides of the fabrics are stitched using sewing machinery. 
ii. SPV: Special Purpose Vehicle formed as a corporate body reg istered under 
Companies Act.  
SL.
NO.
 
 PARTICULARS  Description 
1 APPAREL 
UNITS 
•  For Apparel units where employment  is minimum  200 
workers at any given time in a year after 
commencement of commercial production : 
•  A Unit will receive an incentive of Rs 1000/- per wor ker 
per month on actual employment by the unit, on 
financial year basis. This facility will be available to  a 
Unit for a period of 36 months where minimum 
employment conditions are met. 
•  90% workers (unskilled, semi skilled, skilled) must be 
domicile of Odisha. 
2 APPAREL 
PARK 
a) Capital grant of 20% of project cost   of the park 
excluding cost of land, limited to maximum Rs. 20 cr. 
towards development of common infrastructure, 
common facilities and factory buildings if owned by 
SPV. (This incentive may be availed either from 
 
IPR,2015 or from this policy.) 
b) Interest free loan up to 10% (subject to maximum li mit 
of Rs. 10 cr.) of project cost excluding cost of land. 
After a moratorium period of 2 years from date of 
disbursement of loan, SPV shall repay within five years 
@ minimum 20% per year, with an option to prepay the 
loan. 
3 
 
3. Implementation: 
 For Apparel Park, the nodal agency shall be SPINFED  (Odisha State Cooperative 
Spinning Mills Federation Ltd.) which shall receive, pr ocess proposals and submit through 
Director, Textiles to Govt. in Handlooms, Textiles & Handicrafts Department for approval.  
For Units with investment per unit up to Rs.50 cr., SPI NFED will receive Application 
with DPR, evaluate and give a Techno-Financial Feasib ility approval. This will be sent to 
respective DICs (District Industries Centre) for further processing as per The Odisha 
Industries (Facilitation) Act, 2004 and Rules there under. 
For Units with investment per unit above Rs.50 cr., Inve stors shall apply in 
Combined Application Form (CAF) in ebiz.gov.in which will be processed by IPICOL 
(Industrial Promotion and Investment Corporation of O disha Limited) through a web-based 
system facilitating time bound clearances to investment proposals, including facility for             
e-filing of Combined Application Form (CAF), e-paym ent of processing fees and virtual 
single window interface between investors and different clearance authorities. 
SPINFED will monitor and facilitate the benefits und er this Policy, ensuring release 
of admissible incentives within the stipulated time perio d as specified in Standard 
Operating Procedure (SOP) of the policy.  
All disbursements will be made online through Banks.  
4. Standard Operating Procedure for release of incentives under this Policy: 
A. Apparel unit:  
a. General Conditions :  
On achievement of commercial production [certified by ( a) Director Industries or 
(b) Director of Textiles through SPINFED] with recruitm ent and enrolment of 
minimum 200 workforce, the unit shall produce the following documents on yearly 
basis within 3 months from end of each financial year. 
i. List of workers with full address and self certified domicile Certificates. 
ii. Self certified copy of Aadhar Card. 
iii. Pay Roll duly certified by the employer as proof of wage paid month wise 
online into individual workers’ Bank Accounts.  
iv. Copy of the online documents (Electronic Challan cum  Return ECR) of 
EPFO reflecting amount deposited against the individua l worker in the 
prescribed format of the EPFO. 
v. Universal Account Number (UAN) which is the unique accou nt number 
issued by EPFO to employees. This number Aadhar seeded a nd verified 
should be reflected. 
4 
 
vi. Online bank receipt towards payment of monthly provid ent fund received at 
EPFO. 
vii. Undertaking that the wages under different categories a s prescribed by 
Labour & Employment Department, Govt. of Odisha have b een paid to the 
workers. 
b. Release of funds: 
i.  After receipt of above documents from the units, SPINFED will scrutinise and 
verify the same and recommend to the Director of Textile s, Odisha within two 
months.  The Director of Textiles, Odisha shall disburse t he claim online 
through Banks.  
ii. All utilization certificates should be duly audited & cer tified by chartered 
accountant firms. 
B. Apparel Park: 
a. General Conditions: 
i. Shall be run through an SPV. 
ii. An SPV promoter/ anchor may be 
a) A Company with minimum net worth of Rs. 100 cr., o r 
b) A reputed Industry Association in Apparel clusters which  has operated for 
not less than 10 years. 
iii. The park (other than individual member units) should h ave minimum 
investment of Rs. 50 cr. 
iv. The SPV shall independently arrange the land either through (a) freehold 
purchase from market or (b) leasehold from IDCO/State G ovt. which must be 
registered in the name of SPV. 
v. The Apparel Park in all its processes and functions must ad here to 
environment related compliances such as rain water harve sting; hazardous 
waste treatment;  storage and disposal facilities; clean emissions; pollution 
control devices; health and safety standards; water  and energy 
conservation.  
vi. The SPV shall put in place an interactive online appl ication software/ 
database relevant for accessing benefits under this Policy. 
vii. Common infrastructure includes ZLD/ CETP, internal dra inage, water supply, 
internal roads, power supply, compound wall, telecommunications etc. 
 
5 
 
viii. Common facilities include testing labs, design centre, training centre, trade/ 
display centre, warehousing facilities, packaging unit, cr èche, canteen, 
workers’ hostel, office for service providers, labour rest a nd recreation 
facilities, marketing support etc. 
b. Release of Capital Grant: 
i. First instalment (10%)  of the grant will be released to the SPV subject to 
SPV  furnishing a bank guarantee of equal amount to the State Government 
and with following conditions:—  
/checkbld Certificate of Establishment of SPV 
/checkbld Inclusion of one representative of Handlooms, Textiles & Handicrafts 
Deptt., Govt. of Odisha and MD SPINFED on the board of Directors. 
/checkbld Land in possession of the SPV 
/checkbld Opening of escrow account in a Nationalised Bank. 
/checkbld Submission and acceptance of Detailed Project Report ( DPR)  
/checkbld Consent of financial institution / Bank for funding the project 
/checkbld Furnishing the Credentials of all stake holders of SPV .  
ii. Second  instalment (15%) of the grant will be released to the SPV with follo wing 
conditions:—  
/checkbld Utilization Certificate for 1st Instalment  
/checkbld Details of equity contribution  
/checkbld Sanction Letter for loan component, in case SPV is taki ng term loans  
/checkbld Award of contracts worth equivalent to at least 30% of the total project 
cost excluding the land cost.  
/checkbld Availability of all statutory clearances necessary for co mmencement of 
the project, including water and electricity.  
/checkbld The Bank guarantee given by the SPV will be returned  upon sanction of 
second instalment of grant.  
iii. Third instalment of 25%  of the grant shall be released after the utilization of the 
2nd instalment and after proportionate expenditure ( i.e. 25% of the total SPV 
share from all sources) has been incurred by the SPV. Ut ilization Certificate 
(UC) of the 2nd instalment shall be submitted by the S PV at the time of making 
claim for the 3rd instalment.  
iv. Fourth instalment of 25% of the grant shall be released after the utilization o f 
the 3rd instalments  and after proportionate expenditu re (i.e. 50% of the total 
SPV share from all sources) has been incurred by the SP V. Utilization 
Certificate (UC) of the 3rd instalment shall be submitt ed by the SPV at the time 
of making claim for the 4th instalment.  
6 
 
v. Fifth instalment of 25%  of the grant shall be released after the successful 
completion of the project and after 50% of the units i n Apparel Park start their 
commercial production. Utilization Certificate (UC) of the  4th   instalment shall be 
submitted by the SPV at the time of making claim for the final  instalment. 
vi. All utilization Certificates should be duly audited & ce rtified by chartered 
accountant firms. 
vii. All interest earned on account of grant should be spent for the purpose for which 
the grant has been sanctioned, else it should be returned. 
c. Release of Interest free Loan:  
i. On application by SPV, 50% of interest free loan may be considered for release 
upon fulfilment of conditions for 1st instalment of capital grant. 
ii. On application by SPV, balance 50% of interest free loan may be considered for 
release upon fulfilment of conditions for 3rd instalment of  capital grant. 
SPINFED will aid, advise, supervise and monitor the SP V from the beginning till 
grounding of the Park/Unit. 
Miscellaneous:  
(a)  This policy shall remain in force until substituted by another policy. The State 
Government may at any time amend any provision of this policy.  
(b) Doubts relating to interpretation of any term and/ o r dispute relating to the 
operation of any provision under this policy shall be r eferred to the concerned 
Administration Department, Government of Odisha for cl arification/ resolution and the 
decision of Government in this regard shall be final and binding on all concerned.  
(c) Implementation of various provisions covering the incenti ves, concessions etc. 
will be subject to the issue of detailed guidelines/ st atutory notifications, whenever 
necessary, in respect of each item by the concerned Administrative Department.  
O
RDER  
  Ordered that the Resolution be published in the n ext issue of Odisha Gazette . 
                          By Order of the Governor 
                                                                                         CHITHRA ARUMUGAM 
Commissioner-cum -Secretary to Government 
 
 
 
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10  
Ex. Gaz. 1671 -173+100  

‹ Prev All Odisha acts Next ›