Project is expected to create 37K direct and indirect jobs in the state.
The Gujarat government on Tuesday approved financial assistance to five textile parks under the Gujarat Textile Policy of 2012. Assistance to several individual textile units was also cleared.
A senior official said that the state government accorded in-principle, approval to three textile parks and two spinning parks in a meeting of the state level advisory committee of industries department.
Two of the five parks will come up in Surat, two in Bharuch and one in Kheda. The five parks are proposed to come up at an investment of Rs338 crore. The units in the park will create 16,000 direct employment and 21,000 indirect jobs.
“The committee has given in-principle assistance of Rs65.99 crore for the parks for development of common infrastructure under the textile policy. This is the first time assistance has been given under the new policy,” a senior official said.
For spinning parks, the government provides assistance of Rs30 crore or upto 50% of the project cost, whichever is lower. For textile parks, the assistance is capped at the lower of Rs10 crore or 50% of the cost.
Gujarat is the largest producer of cotton in the country, accounting for more than one-third of the total cotton output. However, very little of the cotton is processed locally. The state government had come out with the textile policy last year in a bid to give a boost to value addition in the cotton chain, which would enable farmers get better price for the crop.
Minister Saurabh Patel, who heads the SLAC, said that a minimum of two lakh spindles will come up in each of the two approved spinning parks.
“There will be huge investments coming in the spinning and textile sectors,” the minister said.
During the meeting, the SLAC approved interest subsidy and VAT concession to 16 spinning, weaving, readymade garment and knitted fabrics units. Interest subsidy was also approved for 12 technical textile units. The committee also approved setting up of apparel training centres in six training centres to provide a steady supply of trained manpower for the apparel industry.
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