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Karur Textile Park set to begin operations in six months
14 Feb '09
2 min read
The Karur Textile Park, which was approved under the integrated textile park scheme of the Union Government, is all set to begin operations, within a period of six months. The government has approved 40 parks under the scheme.
The scheme was under a cloud recently, when the government decided to review the progress of each of the parks and cancel allotments to those who had not met the terms and conditions in progress of construction activities.
Under the scheme, the government provides a grant of up to 40 percent of the cost of setting up a textile park, with a ceiling of Rs 400 million, hence the reason for the concerns raised by the government which has invested huge amounts of money as part of its equity.
Fibre2fashion spoke to Mr M. Nachimuthu, Chairman of the Karur Textile Park, to tell us more about the preparedness of the park to start operations within six months. Mr Nachimuthu said, “50 percent of work of Textile Park is already over and hope to complete the project in period of another 6 months”.
Divulging details of the park he said, “The project covers an area of around 110 acres, with the total cost estimated at Rs 1,200 million. We have received a grant of Rs 362.7 million from the government, Rs 650 million has been availed as loans from financial institutions and shareholder contribution accounts for Rs150 million”.
He further added by saying that, “There are 60 members in the association and the park is located approximately 10 km from Karur town on National Highway No-7. On completion, the park is expected to provide employment to over 30,000 people and will also house 350 looms”.
The scheme was under a cloud recently, when the government decided to review the progress of each of the parks and cancel allotments to those who had not met the terms and conditions in progress of construction activities.
Under the scheme, the government provides a grant of up to 40 percent of the cost of setting up a textile park, with a ceiling of Rs 400 million, hence the reason for the concerns raised by the government which has invested huge amounts of money as part of its equity.
Fibre2fashion spoke to Mr M. Nachimuthu, Chairman of the Karur Textile Park, to tell us more about the preparedness of the park to start operations within six months. Mr Nachimuthu said, “50 percent of work of Textile Park is already over and hope to complete the project in period of another 6 months”.
Divulging details of the park he said, “The project covers an area of around 110 acres, with the total cost estimated at Rs 1,200 million. We have received a grant of Rs 362.7 million from the government, Rs 650 million has been availed as loans from financial institutions and shareholder contribution accounts for Rs150 million”.
He further added by saying that, “There are 60 members in the association and the park is located approximately 10 km from Karur town on National Highway No-7. On completion, the park is expected to provide employment to over 30,000 people and will also house 350 looms”.
Fibre2fashion News Desk - India
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