Karnataka to set up 7 textile parks

Bangalore, March 21 | Updated: Mar 22 2006, 06:59am hrs
The Karnataka government plans to set up seven integrated textile parks through public private partnership (PPP) within the next two to three years. The proposed investment in these parks is estimated to be nearly Rs 1,400 crore.

"We want to provide the industry with world class infrastructure facilities. Seven textile parks have been proposed for this purpose," said Mahendra Jain, secretary, commerce and industries department, Karnataka.

The scheme would be implemented through special purpose vehicles (SPVs). The Central government will provide a grant upto 40% of the project cost subject to a ceiling of Rs 40 crore.

"We have to develop the backward linkages like fabric and spinning to develop the entire value chain of the textile sector," said Sandeep Dave, commissioner for textile development and director of handlooms and textiles.

Textile majors like Gokaldas Exports, Himatsingha Seide, Bombay Rayon and Raymonds have already shown interest in setting up factories in the proposed parks, top government officials said.

One of the textile parks will be developed in the Kanakapura Special Economic Zone (SEZ). Karnataka Industrial Area Development Board (KIADB) will assist the state government in acquiring land for the proposed parks in areas where SPVs are not set up.

"Karnataka is emerging as a textile hub of the country. The proposed parks will cover the entire gamut of textiles including spinning, dress material, etc," Mr Jain said.

The current export of textiles from the state amounts to $1 billion (Rs 4,500 crore) while it provides employment to nearly four lakh people, women in particular. The proposed parks have the capacity to provide additional employment to nearly three lakh people and double the foreign exchange through increased textile exports.

The state government is also in the midst of modernising powerlooms, reforming labour legislations, providing training programmes and has tied up with National Institute of Fashion Technology to provide impetus to the industry, Mr Dave said.

Currently, textile industry in Karnataka is growing at 12%-15% year on year.