Ministry to spend Rs 7,500 cr on setting up 25 textile parks in 2 years

Kolkata, Aug 4 | Updated: Aug 5 2005, 05:30am hrs
The textiles ministry has set up a Rs 7,500-crore fund to build 25 textile and apparel parks in the country, which will be completed in two years.

Secretary in the textile ministry R Poornalingam, at an interactive meeting organised by the Bengal National Chamber of Commerce & Industry (BNCCI) said the Centre has initiated a number of promotional schemes to improve Indian textile products so that they can become more competitive and benefit from the withdrawal of the quota regime under the multi-fibre agreement.

Mr Poornalingam added the average expenditure for each textile or apparel park on various subsidy accounts would be Rs 300 crore, including Rs 40 crore as grant for infrastructure development and interest, subsidies on purchase of machineries, raw materials, marketing and export initiatives etc.

The government has created a nodal agency to monitor the entire park project, Infrastructure & Leasing Financial Services Ltd (ILFS), which will also help individual entrepreneurs of the parks get bank loans and help increase exports, he said.

Mr Poornalingam added that the Jute Technological Mission, with an outlay of Rs 134 crore, is supposed to start operations in 15-20 days.

He said the finance commission has sanctioned the fund and approved the activities to be covered by the mission. The draft proposal has been sent for the approval of the Cabinet committee on jute, which is expected to take 15 days to okay the proposal.

Mr Poornalingam said Indias textile export target has been fixed 25% higher at $15 billion for 2005-06 ($13 bn last year).

He is confident this could be achieved without any problems. He also said the government has set a target to increase textiles exports to $50 billion by 2007.

BNCCI president SN Nandi urged Mr Poornalingam to take necessary steps to reduce transaction costs and also free the industry from the clutches of the manifold inspection procedures which discourage entrepreneurs.