The government of southern Indian state of Tamil Nadu would spend a sum of Rs. 1.04 billion for modernizing five sick cooperative textile mills, G Santhanam, Principal Secretary, Textiles, Tamil Nadu, has said.
Speaking after a conference on challenges facing the cotton trade and industry 2013 organized by the Indian Cotton Federation, Mr. Santhanam said post-modernization, the five mills located in Theni, Krishnagiri, Ettayapuram, Kanyakumari and Pudukottai would have a total capacity of 100,000 spindles.
He said the state government also proposes to restart the non-functional cooperative textile mill in Ramanathapuram district at a cost of Rs. 180 million.
Moreover, the government is also considering revival of another 12 sick mills or to allocate the excess land of these mills to other government departments, the official said.
V Srinivas, Joint Secretary, Union Textiles Ministry, said due importance should be given to strengthen the weaving and processing sectors.
He said a number of projects launched for the state of TN under the ‘National Fibre Policy’ (NFP), have been included in the 12th Five Year Plan commencing this year, as their financial requirements exceeded the estimations.
He further informed that the Technology Upgradation Fund Scheme (TUFS) has been extended to the 12th plan period, and a sum of Rs. 158.86 billion has been earmarked under the scheme for the period. The outlay is, however, less than the sum of Rs. 340 billion recommended by the working group on textiles for the plan period.
It is also proposed to set up processing parks under the integrated processing development scheme, in seven states. The parks would be established under a public-private partnership model, he added.
Fibre2fashion News Desk - India