Tamilnadu textiles and clothing account for 1/3rd of the textile business size, providing direct jobs to over 60 lakh people and the only State having a presence in the whole textile value chain, and has been playing a pivotal role in the country’s economy. The textile industry is the second largest employment provider in the Nation, next only to agriculture. Chief Minister of Tamilnadu, M.K.Stalin took several policy initiatives for fuelling the growth of textile industry.
In a Press Release, Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) thanked the Chief Minister and Minister for Handlooms & Textiles, Gandhi and Minister for Industries, Thangam Thennarasu for the right initiatives. He has appreciated the Government for enhancing the free power supply to the power-loom sector from 750 units to 1000 units which would strengthen the competitiveness of the power-loom sector in Tamilnadu benefitting 1.64 lakh power-loom weavers who account for around 25% of the woven fabrics production in the country and play a major role in exports.
The recent announcement by the Union Government, allocating a Park to Tamil Nadu (at a cost of Rs.1,800 Crore in Virudhunagar district and for this purpose 1,052 acres of land would be acquired and completed by SIPCOT) through the PM MITRA mega textile park scheme and the infrastructure support extended by the government of Tamil Nadu through this budget, would increase the scale of operation and value-addition.
This facility is expected to provide an infrastructure facility for textile processing, the weakest link in the whole textile value chain. SIMA Chairman welcomed the announcement of 10 mini handloom parks with a total outlay of Rs. 20 Crores to upgrade the standard of handloom products by using latest technologies and creating market linkages. He embraced the announcement of new SIPCOT industrial parks in the clusters of Virudhunagar, Vellore, Kallakurichi, and Coimbatore at an estimated cost of Rs.410Crore for providing employment opportunities to nearly 22,000 persons.
He has stated that industrial housing facility is to be established in the SIPCOT Industrial Park in Gangaikondan at an estimated cost of Rs. 50 Crores to accommodate 1,500 employees is a welcome move.
He has said that the Target fixed to double the installed power generation capacity by 2030 and increase the share of green energy to 50 per cent is laudable, more so, when the export market scenario is prioritizing sustainability and utilizing green energy would go a long way in supporting the textile manufacturing exporters.
Ravi Sam appreciated the announcement regarding scaling up skill training infrastructure in a massive way, where factories have been proposed to be used as Skill Development Centres. Industries will be incentivized to provide on-the-job training to youth in factories. In this Budget, an amount of Rs. 25 crores has been allocated for the “Factory Skill Schools‟ programme. He also welcomed the announcement of the state-of-the-art Skill Development Centre to be established at an estimated cost of Rs. 80 Crore, in SIPCOT Industrial Park in Krishnagiri district, which is emerging as the third largest industrial cluster in the State.
“The announcement regarding establishment of a Start-up Mission to address the difficulties faced by women entrepreneurs in accessing adequate, timely credit and marketing of products is a welcome measure. This mission will encourage women entrepreneurs in all aspects of their business”, said Ravi Sam.
He further appreciated the Government for announcing that a new Textile Policy would be released with a focus on holistic development of the entire value chain, latest design development and textile machinery manufacturing.
He said that the GDP growth in the State is higher than the national average showing, a positive sign for future growth. He hoped that budget announcements would work as a growth engine for the economy of the State.
