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50% TN subsidy for ‘Mini Textile Parks’

Sep 24, 2016
50% TN subsidy for ‘Mini Textile Parks’

Tamil Nadu Government has offered to bear 50 per cent of the total cost for creating infrastructure facilities such as laying of roads, sewage treatment plant, captive power plant and telecommunications, if industry comes forward to establish Mini Textile Parks. After Chief Minister J Jayalalithaa made an announcement to this effect in the State Assembly in September last year, the government passed a GO on December 30, 2015 to bear 50 per cent of the total infrastructure cost or Rs 2.50 crore, whichever was low. 

Ten entrepreneurs could form a cluster and set up a MTP in 10 acres of land after registering a Special Purpose Vehicle (SPV). They should buy the land on their own and establish minimum 10 worksheds in the park to avail the subsidy for the infrastructure, he said. The total investment on buildings and machinery should be more than two times the amount spent for creating infrastructure facilities, he said, quoting the GO. 

The entrepreneurs from Chamber of Commerce and Industry and Master Weavers’ Associations evinced interest in setting up the parks but expressed difficulties in purchasing lands. The establishment of MTPs would help to improve the standard of living of handloom and powerloom weavers.