Jharkhand signs MoU with Orient Craft for setting up two textile parks

The Jharkhand state during the launch of seminal investment promotion road show in association with Confederation of Indian Industry (CII) under the banner ‘Momentum Jharkhand Global Investors’ Summit 2017’ in Mumbai scheduled for February signs a memorandum of understanding (MoU) with Orient Craft Limited for construction of two textile parks at a cost of Rs 1,500 crore on a 140-acre land and to set up a skilling centre for the sector.

Sudhir Dhingra, Chairman of Orient Craft Ltd., said that in his experience of 41 years, no government has understood the all-encompassing social and economic benefits of the textiles industry, before his meeting with Chief Minister Shri. Raghubar Das and his team. Ever since the meeting, the government has tirelessly wanted to take the relationship to fruition.

The textiles industry has an unprecedented opportunity through Jharkhand to enhance its competitiveness and competency to global standards, and catch up with Bangladesh, China and Southeast Asia – and expand India’s global trade share of the textiles sector from a meager 16 billion USD out of 600 billion USD. Today the Indian textiles sector employs about 40 million people.

Jharkhand is among the very few systems with a genuine promise and political will to do justice to this labour intensive sector.

The MoU was signed after the state government released a textile policy which proposes capital investment subsidy of 20 per cent up to Rs 50 crore, VAT subsidy of 100 per cent for seven years followed by 40 per cent for the next three years, and 100 per cent reimbursement of stamp duty.

The new policy also proposes setting up of six training centres to provide locals with jobs in the textile sector, chief minister Raghubar Das said.
He informed that the MoU with Orient Craft would result in creation of 15,000 jobs.

Das said that the new industrial and investment promotion policy focuses on creating a conducive ecosystem which makes industries in Jharkhand innovative and globally competitived.

He explained that the government does not face any land acquisition problem because it already has a land bank of 134,000 hectares. Land belonging to various government departments and corporations has been pooled into one corporation (Jharkhand Industrial Area Development Authority), which allots land to the investor.

Jharkhand Investment Promotion Board (JIPB) a special body for planning and executing strategies to enhance Jharkhand’s position as a global business centre. As, Jharkhand is fast emerging as the gateway to Make In India.