The Centre will grant incentives to investors to set up mega textile parks with plug-and-play facilities over large areas of at least 1,000 acres each according to textiles secretary UP Singh.
Centre will grant incentives to investors to set up mega textile parks with
plug-and-play facilities over large areas of at least 1,000 acres each
according to textiles secretary UP Singh.
parks will preferably be close to ports and house all sorts of textile and garment
firms, including integrated facilities, to create a robust eco-system. The move
is aimed at â€œbuilding scaleâ€ across the textiles and garment value chain that
has remained fragmented for decades. Singh said it will also complement the
recently-approved Rs 106.38 billion production-linked incentive (PLI) scheme
for man-made fibre and technical textiles segments.
investors will not just build infrastructure but even manage maintenance and
other related facilities. They will be given to operate the park for a period
of 25-30 years and they can collect fees from the companies that set up units
there. Even small firms or fashion designers will be able to set up shop
quickly, thanks to the plug-and-play facilities, Singh said. Such mega parks
will be able to better draw overseas buyers by offering a broad range of
products and cater for large orders, given the greater synergy among its
selection criteria could include the proximity of the land to ports, raw
material availability and modes of transportation, among others. The mega parks
are the latest in a series of attempts made by the government to promote
formalisation and build scale in the labour-intensive sector that has been
hamstrung by millions of small units, supported by lackadaisical official
policies for decades.
textile secretary expected that with a raft of initiatives undertaken by the
government in recent years including the announcement of the PLI scheme.
Source: Financial Express