Companies like Shahi, Aditya Birla, local entity White Lotus, and Welspun Living are among those that have committed investments ranging from Rs 50 crore to Rs 4,000 crore.
Odisha has announced an ambitious plan to attract an investment of Rs 10,000 crore for its textiles sector over the next five years, aiming to bolster the state’s economy by creating more than 1 lakh job opportunities.
Bhupendra Singh Poonia, Managing Director, Industrial Promotion & Investment Corporation of Odisha (IPICOL), revealed that the state government had approved projects in the textiles sector under the revised Industrial Policy Regulation (IPR). He mentioned that the IPR offers a 30% reimbursement facility to investors in the textiles sector.
Poonia explained that investors could anticipate the incentive to be disbursed in five equal annual installments, equating to a 6% reimbursement each year, commencing after the start of commercial production.
This strategy forms part of a broader effort, as outlined in the technology-focused IPR introduced in December 2022, to attract investments across various textiles categories, including apparel and technical textiles, encompassing both synthetic and natural fibres.
Poonia stated, “At present, Odisha has minimal presence in textiles export and is striving to increase its share, particularly in technical textiles and apparel, recognising the state’s potential.” He added, “We have approved 26 proposals in this sector, and they are progressing through different stages such as commissioning, land allotment, design drawing, approval, etc.”
Poonia, a 2008 batch IAS officer, noted that the state, which previously had limited activity in this sector, now has substantial investment commitments from both national and international players.
Companies like Shahi, Aditya Birla, local entity White Lotus, and Welspun Living are among those that have committed investments ranging from Rs 50 crore to Rs 4,000 crore.
Besides these incentives, Poonia mentioned that the state government would provide a Rs 2 per unit electricity cost reimbursement for the next decade, based on a base rate of Rs 6 per unit, specifically for firms in the textile sector.
Furthermore, he stated that the state would cover Employees’ State Insurance Corporation (ESIC) and Employees Provident Fund Organisation (EPFO) contributions for Odia workers, aiming to promote employment within the state.
Poonia added that an additional initiative to construct hostels for women workers, with the goal of accommodating 35,000 workers at minimal rent, would ensure better access to manufacturing units and transport connectivity.
The Indian market for technical textiles is projected to reach a massive Rs 1.81 lakh crore in FY24 from Rs 1.33 lakh crore in 2019. The domestic market has expanded at an annual rate of 12%, compared to the global rate of 4%. Plans are in place to increase India’s exports of technical textiles, including medical apparel, from $2.5 billion to $10 billion over the next five years, capitalising on India’s 4% share of the global textiles and apparel trade in the 2021-22 financial year.
Despite a slight dip in textiles exports from $ 32.33 billion in the previous year to $ 30.96 billion between April 2023 and February 2024, India remains a global leader in cotton and jute production, is the second-largest producer of silk, and produces 95% of the world’s hand-woven fabric, highlighting the significant potential for growth and innovation within the sector.
News source: Live Mint