Karnataka aims to mobilize Rs. 10,000 cr to boost textile industry
BANGALORE: October 14, 2008: In order to provide the much-needed thrust to textile and apparel industry, Karnataka Government has come out with a new Suvarna Textile Policy (2008-13) and it envisages attracting investment to the tune of Rs 10,000 crore over the next five year period.
It has decided to establish textile and apparel parks in various districts in the State. The BJP government will be providing subsidy of Rs 500 crore during the five-year policy period, which has an ambitious target of creating five lakh jobs. The Government has decided to hold an investors meeting in Bangalore on November 1, 2008.
Minister for Textiles Gulihatti Shekhar told journalists on Monday that the Karnataka Industrial Area Development Board (KIADB) had started acquiring land for the parks and the process would be completed in the next few months. The first phase of the Apparel Park at Doddaballapur in Bangalore Rural District had been completed.
The second phase of the Doddaballapur Apparel Park, adjoining the existing park, would be completed soon. The KIADB would allot land for Hi-tech Silk Weaving Park at Anekal in Bangalore Rural District. Several firms had shown interest in establishing their plants at the park.
The textile park would be come up in Belgaum, Mysore, Bellary, Davangere and Ramanagaram. A textile park had been planned in Gulbarga. But the extent of land required for it had not been fixed, he said.
The establishment of textile parks would attract large investment in the sector apart from reducing manufacturing cost. While the park in Belgaum would focus on power looms, the park in Bellary would promote denim-based garments. Acquisition of land in Gulbarga and Davangere had been delayed because private parties were demanding higher compensation for their land, he said.
He hoped that the State would emerge as a major apparel-sourcing destination with doubling of exports. The State's export stood at Rs. 6,600 crore a year, which was roughly 20 per cent of the country's total exports, he said.
The chief minister said the government would extend financial assistance and cash incentives ranging from Rs 2 lakh to Rs 1200 lakh for various types of activities, especially for dispersal of the garment manufacturing units to districts from Bangalore.
Readymade garments, handlooms, power looms, knitting, and textile machinery manufacturing are among the sectors which will receive special attention under the textile policy, the minister said.