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Gujarat Govt to launch industrial parks with captive power plants
23 Nov '10
2 min read
Gujarat Government, with an intention to draw more spinning mills in the State, is intending to establish specifically designed industrial parks for cotton spinning units involved in yarn production. The government will also persuade these parks for setting up captive power plants, so as to ensure sufficient supply of lignite to the units at reasonable prices.
According to Saurabh Patel, Minister of State for Industries and Mines, Gujarat being the biggest producer of cotton, produces over ten million bales of cotton every year, but due to inadequate spinning capacity, the state is required to export 70 percent of this to other states or other countries like China.
Quite opposed to this, textile units and powerlooms in Gujarat are required to import yarn. The Minister stated that, high cost of power is the biggest hindrance in the way of establishing a spinning unit in Gujarat, more so when states like Tamil Nadu are providing heavy subsidies to units there.
He also stated that, the State Government's policy does not allow providing any direct electricity subsidy to the industries in the State. But then the State Government is intending to promote the clusters producing cotton yarn while using captive power plants. The government is also to see to it that these parks are set up near the cotton cultivating regions so as to cut down on the cost of transportation, the Minister added.
The State possesses enormous capacity of producing, ginning, pressing, weaving and processing cotton, but then, spinning and garmenting – the two main activities of the textile value chain do not match with other massively occurring textile value chain activities, said Nayan Parikh, former chairman of Textile Committee, Government of India.
As revealed by the sources around 50 percent of the cotton yarn producers in the state do not use anything more than 30 percent of the state's overall produce.
According to Saurabh Patel, Minister of State for Industries and Mines, Gujarat being the biggest producer of cotton, produces over ten million bales of cotton every year, but due to inadequate spinning capacity, the state is required to export 70 percent of this to other states or other countries like China.
Quite opposed to this, textile units and powerlooms in Gujarat are required to import yarn. The Minister stated that, high cost of power is the biggest hindrance in the way of establishing a spinning unit in Gujarat, more so when states like Tamil Nadu are providing heavy subsidies to units there.
He also stated that, the State Government's policy does not allow providing any direct electricity subsidy to the industries in the State. But then the State Government is intending to promote the clusters producing cotton yarn while using captive power plants. The government is also to see to it that these parks are set up near the cotton cultivating regions so as to cut down on the cost of transportation, the Minister added.
The State possesses enormous capacity of producing, ginning, pressing, weaving and processing cotton, but then, spinning and garmenting – the two main activities of the textile value chain do not match with other massively occurring textile value chain activities, said Nayan Parikh, former chairman of Textile Committee, Government of India.
As revealed by the sources around 50 percent of the cotton yarn producers in the state do not use anything more than 30 percent of the state's overall produce.
Fibre2fashion News Desk-India
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