SIMA mull over set up textile processing park for SMEs under IPDS

Southern India Mills’ Association (SIMA) welcoming the Chief Minister Jayalalithaa’s announcement made on Tuesday is planning to set up a textile processing park in the State for the small and medium-scale units under the Integrated Processing Development Scheme.

The association chairman T. Rajkumar said that the association will take the lead for implementation of the scheme in the State as there are about 50 SMEs in the Salem, Karur, Erode, Tirupur, Coimbatore and Madurai textile clusters will benefit from the park, when it is developed.

The association is looking at taking up this project under the Integrated Processing Development Scheme as the State Government will extend 25 per cent capital subsidy to textile processing parks set up under the scheme. The Union Government gives 50 per cent subsidy.

Apart from this, the association will also sign a Memoradum of Understanding with the State Government, at the Global Investors’ Meet, to set up a textile processing park at Cuddalore, for the larger textile processing units.

The project was mooted in 2007 and is coming up on 260 acres which will involve investment to the tune of Rs. 500 crore, it will have 10 processing units that will have the capacity to process 200 tonnes of fabric (knitted and woven) and yarn. The association will see if this project can also be covered under the Integrated Processing Development Scheme.

Mr. Rajkumar said that the formation of an advisory committee will play a greater role in laying the road map for sustained growth of textile industry in the State and make it a hub for textile manufacturing.

The announcement of 15 percent discount for silk fabric sales was also welcomed by the association. The association is now eagerly awaiting the State to come out with a textile policy soon.