India - New textile policy looks to Gujarat for investments
Dated- 24 Apr , 2012 - India
In a move that seeks to showcase the attractiveness of Maharashtra as a favoured business destination, a few state government representatives plan to visit Ahmedabad and invite businessmen and textile manufacturers to set up units here.
Textile minister Naseem Khan said he would be visiting Ahmedabad to showcase the positive attributes of the new textile policy, which has generated much interest among textile manufacturers.
“We expect to get investment from businessmen in Gujarat,” he said.
DNA had earlier reported that the new textile policy provides both interest subsidy for those seeking to set up units in the state, and a further capital subsidy for those setting up units in the backward regions of Vidarbha, Marathwada, and Khandesh. These are also the cotton growing regions of the state.
The interest subsidy is of up to 12.5% while the capital subsidy is 10% of the investment made.
“We have already received letters of interest from a few big firms that are looking at investing more than Rs300 crore each in Maharashtra,” Khan added.
These include Oswal Spinning and Weaving, Etco Spinner, Ginny International and Pravin Shelley.
Moreover, textile manufacturers’ associations in Maharashtra, Tamil Nadu, and Karnataka have evinced interest in setting up units in the state. The state is looking at investments of Rs40,000 crore and employment of 11 lakh persons over the next five years.
Khan said that 14 textile parks would be set up in Maharashtra.
The Centre plans to set up 60 textile projects across India. Each park would have at least 50 units related to textile work and would require an investment of Rs700 crore. The state is hoping that each unit would employ at least 10,000 persons.
“The textile policy will stop farmer suicides in Vidarbha as farmers will now get a better price for their cotton,” Khan said.