Telangana Textile and Apparel Policy

 

India’s textile industry, one of the oldest and largest sectors in the country, has been a key contributor to employment and exports. Within this vast ecosystem, Telangana has rapidly emerged as a progressive hub, with its forward-thinking Textile and Apparel Policy (T-TAP) aimed at transforming the state’s potential into a global textile and apparel manufacturing powerhouse.

Launched by the Telangana government, T-TAP is a growth-focused initiative that encourages private investment, technological innovation, and sustainable practices. This blog decodes the policy’s features, its implications for investors, and how the Telangana Textile and Apparel Policy is establishing itself as the textile destination of India.

 

Overview of Telangana Textile and Apparel Policy (T-TAP)

The Telangana Textile and Apparel Policy, introduced in 2017, focuses on the holistic development of the textile value chain—from ginning and spinning to weaving, dyeing, finishing, and garmenting. The policy targets employment generation, women’s empowerment, infrastructure development, and industrial decentralization.

Unlike piecemeal reforms in other regions, Telangana’s approach is comprehensive. It facilitates fiber-to-fashion integration, cluster-based development, skill enhancement, and export readiness, while offering attractive investment subsidies, infrastructure support, and ease-of-doing-business measures.

 

Objectives of T-TAP

• Develop Telangana into a preferred investment destination for textile and apparel manufacturing.
• Generate employment for over 5 lakh people, especially in rural and semi-urban areas.
• Enhance global competitiveness through innovation and quality control.
• Support sustainable textiles, organic fiber use, and zero-liquid discharge compliance.
• Promote Technical Textiles, Eco-friendly fabric units, and Value-added garment units.

Key Features and Incentives

1. Capital Investment Subsidy

To encourage large-scale manufacturing units and MSMEs:

• 25% capital subsidy on eligible fixed capital investment.
• 35% capital subsidy for Technical Textile units.
• SC/ST and differently abled entrepreneurs will receive an additional 5% capital subsidy.
• Assistance capped at ₹20 crores for each eligible unit.

2. Interest Subsidy

• Reimbursement of interest up to 8% per annum on term loans.
• Available for a period of 8 years from the commencement of commercial operations.

3. Power Tariff Rebate

• ₹1 per unit power tariff subsidy for 5 years.
• ₹1.50 per unit for technical textile and garment manufacturing units.

This drastically lowers operating costs for apparel hubs and textile clusters.

4. Tax Incentives and Reimbursements

• 100% of fixed capital investment or 100% of SGST reimbursement for 7 years.
• For land purchases or leases, 100% stamp duty reimbursement is provided.

5. Infrastructure Development

• Up to 50% land cost subsidy capped at ₹20 lakh per acre for private textile parks.
• Rental subsidy of ₹8 per sq. ft/month for units in government-built infrastructure.
• Common Effluent Treatment Plant (CETP) support, plug-and-play facilities, and access roads.

Kakatiya Mega Textile Park (KMTP) – A Game-Changer

Situated in Warangal, the Kakatiya Mega Textile Park is the centerpiece of T-TAP. Spanning over 2,000 acres, KMTP is a fully integrated fiber-to-fashion park housing ginning, spinning, weaving, dyeing, processing, and apparel units.

Highlights include:

• Plug-and-play infrastructure for quick setup.
• Shared utilities include CETP, water recycling, and solar energy.
• Skill development centers for a ready-to-deploy workforce.

KMTP has attracted prominent industry names and is projected to generate 75,000+ jobs.

Skill Development and Employment Generation

To build a competent workforce:

• Government-funded training under the Telangana Academy for Skill and Knowledge (TASK).
• Tie-ups with textile institutes for customized training programs.
• Worker housing, transport facilities, and ESI/EPF support for job security.

This focus on women’s employment in apparel units has led to higher rural participation in the workforce.

Support for Technical Textiles and Innovation

T-TAP actively encourages investment in technical textiles, such as:

• Medical textiles (PPEs, surgical gowns)
• Geo-textiles (for roads and construction)
• Agro-textiles and defense fabric

R&D support, patent facilitation, and product standardization are encouraged to improve global competitiveness.

Sustainability and Eco-Friendly Practices

Telangana’s policy aligns with global standards on sustainable manufacturing:

• Zero Liquid Discharge (ZLD) mandates for processing units.
• Energy-efficient equipment and solar energy adoption.
• Support for organic cotton and natural dyes.

Policy Outcomes and Future Roadmap

In just a few years since implementation:

• ₹10,000+ crores of investment proposals received.
• Employment creation across MSME garment units and large-scale textile industries.
• Exports from Telangana’s apparel sector have increased significantly.

Future plans include setting up more mini textile parks, increasing FDI inflows, and launching e-market platforms to connect producers to global buyers.

 

Conclusion: Cretum Advisory – Your Compliance and Strategy Partner

At Cretum Advisory, we assist startups, MSMEs, and large textile corporations to navigate the T-TAP framework seamlessly. From evaluating subsidy eligibility, preparing compliance documentation, coordinating with government authorities, to optimizing tax and infrastructure benefits, our expert team provides end-to-end advisory solutions like Accounting and Advisory services, Startup consulting, Income taxation & customs, etc.

Whether you’re a garment exporter, a technical textile unit, or a startup looking to invest in Telangana’s vibrant textile ecosystem, we ensure you unlock the full potential of the Telangana Textile and Apparel Policy.

📩 For strategic consultation and compliance support, reach out at update@cretumadvisory.com

 

Frequently Asked Questions (FAQs) on Telangana Textile and Apparel Policy

 

1. What is T-TAP?

T-TAP is Telangana’s Textile and Apparel Policy, introduced in 2017 to promote investment, infrastructure, and job creation across the textile value chain.

2. Who can apply under the policy?

New and existing textile and apparel units, including MSMEs, garment manufacturers, and technical textile producers, are eligible for various incentives.

3. What is the Kakatiya Mega Textile Park?

KMTP is India’s largest integrated textile park in Warangal, offering end-to-end infrastructure support to textile units from fiber processing to fashion production.

4. Is there support for sustainability and eco-friendly textiles?

Yes, the policy mandates Zero Liquid Discharge for process units and supports the use of renewable energy and organic raw materials.

5. How does Cretum Advisory help in textile policy compliance?

Cretum Advisory offers complete assistance in T-TAP application filing, documentation, subsidy claim support, and strategic tax planning for textile units.