Chinese company show interest to invest Rs600cr in Uttarakhand textile park

A Chinese company has evinced interest in investing Rs600 crore in 35 acres in the textile park at Sitarganj in Udham Singh Nagar in the state. This is likely to help the textile industry of Uttarakhand take a major growth.

According to experts, surplus ground table water in Sitarganj and proximity of US Nagar to neighbouring countries like Nepal and China have attracted industrialists to the textile park. Another advantage is its border with Uttar Pradesh and good transportation facility to other parts of the country.

As per the officials of the State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) , it will be the first Chinese company to do 100% FDI in India.

As it is a Chinese conglomerate that is investing in Uttarakhand, they are anticipating more Chinese firms to invest in Uttarakhand, said R Rajesh Kumar, MD of SIDCUL.

It will also provide employment to around 8000 people and with the inflow of textile industries, it will generate more options of livelihood.
Uttarakhand is a suitable business destination for industrialists due to benefits like rebate in per unit electricity bill, exemption from electricity tax, 50% rebate in land for setting up textile industry.

A delegation of industrialists will be coming from Ludhiana to meet the SIDCUL on August 12. The first round of meeting was held in Punjab last week, following which the investors will visit the hill state.

According to industry officials, four national level companies Innovative textile, SB Polytech, Sepia and YC Yarn have applied to set manufacturing units in Sitarganj phase II, in US nagar recent and all the firms will invest around Rs 100 crore in initial period.