Govt works out strategy to encourage textile sector

23 Feb '08

2 min read

The policy of setting up a special purpose vehicle (SPV), for encouraging and elevating the textile industry, is already in the pipe line. The Government has proposed to set up an SPV with participation by 11 export promotion councils (EPCs) who will be vested with the responsibility of tying up with giant international buyers.

The SPV will get timely allocation of finance from the Government and in return, it will have an obligation to bring foreign direct investment (FDI) into the country by inviting textile machinery manufacturers to establish its base on domestic grounds.

The SPV will have their own independent decision-making powers and will also set up retail outlets in popular international cities and at major international airports like London, Paris, New York and Toronto.

The 11 councils which will form the SPV include Apparel Export Promotion Council (AEPC), Cotton Textile Export Promotion Council(TEXPROCIL), Synthetic Rayon Textile Export Promotion Council (SRTEPC), Powerloom Development Export Promotion Council(PDEXCIL), Indian Silk Export Promotion Export Promotion Council (ISEPC), Jute Manufacture Development Council (JMDC) and Wool and Woollen Export Promotion Council (WEPC), among others.

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