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Yet another year for SIMA textile park
08
Jan '08
The Southern India Mills' Association (SIMA) has taken a final decision to mop up the textile park at Naidupet in Nellore district of Andhra Pradesh.

The association together with its members had already invested for 375 acres of the 1,000 acres allotted for the park. But due to a number of disturbing factors the construction of this textile plant had to be annulled.

In an exclusive interview with Fibre2fashion, Dr K Selvaraju, Secretary-General of SIMA, said “Due to present industry condition we thought of winding up of the textile park at Nellore. The rupee has appreciated steeply. Interest rates have gone up 4-5 per cent. The cost of raw material (cotton) increased by 10-15 per cent and the yarn price saw a decrease of 4-5 per cent. All the new projects have been shelved.”

Dr Selvaraju further asserted, “Although, the growth rate may deteriorate, the decision will not affect the textile industry of Andhra Pradesh in any other critical way.”

Most importantly, being very positive about its strategy and programs, Dr Selvaraju stated that the plant will be revived a year later since Andhra Pradesh is an attractive destination because of an industrial-friendly power tariff structure. As compared to Tamil Nadu who's power tariff structure is 4.25 percent, Andhra Pradesh averaged sized mill could save up to Rs4-5 crore with power tariff structure of 3.10 percent.

The decision was unanimously taken by all the SIMA members who agreed to wait till the project could get started next year.

Fibre2fashion News Desk-India

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