Rs.1485 Cr Textile Project To Change Face Of Malwa Belt

Chandigarh, August 29: The Punjab Deputy Chief Minister Sukhbir Singh Badal today expressed satisfaction over the progress of Rs.1485 crore textile unit coming up expeditiously on 350 acre of land in district Muktsar under the new Textile Park Policy announced by Punjab government.

Reviewing the progress of Textile Park in a meeting with Industry & Commerce Minister Anil Joshi here last evening, Badal said that with the operationalization of this unit in Malwa area all international denim units would procure their denim from this company. He said that textile industry was the labour intensive industry and with the completion of Textile Park in the Malwa area there was possibility of generation of 1 lac jobs

The State Government is hopeful that this policy would help in optimum utilisation and value addition of the home produced cotton thereby adding to the State revenue besides providing employment to the youth. He said that Punjab was making special efforts to boost Textile sector. He said that in order to promote the value addition for this sector, the State Govt. has come out with an integrated textile park policy with a special package of incentives.

Under the policy a Textile Park having composite Textile Processing units from Cotton to Garment may be setup with minimum Fixed Capital Investment of Rs.250 crore in the districts of Bathinda, Mansa, Faridkot, Ferozepur, Mukatsar, Sangrur, Barnala, Taran Taran and Amritsar is covered under this policy.

The concessions available in the policy include 50% exemption from Market Fee, RDF and ID Cess for 10 years or upto 50% of Fixed Capital Investment, whichever is earlier, may be provided on purchase of cotton. It also mentions that 10% land of the total land acquired/purchased by the Promoter for such projects may be allowed for commercial use without payment of any CLU, EDC and License fee charges. The policy also envisages Clubbing of investments in the units setup at multiple locations (not more than 2), on minimum 50 acres of land will be allowed. However, the usage of not more than 10% commercial area in proportionate to the land at each location will be allowed.

Badal said that 100% power at doorstep with the facility of Power Grid at the cost of the unit in the textile park was the main attraction of the policy. He said that however setting up of their own power plant would be allowed for self consumption.

He said that Water at doorstep subject to availability of Canal water (other than the closer of Canal) after being studied by the Irrigation Department. The cost of the land and cost of construction of the water carriage channel will be borne by the Developer; however no departmental charges of the Irrigation Department will be taken for this purpose. Water charges as applicable will be paid by the developer.

Joshi said that courses for the skills required by the Park would be allowed to be introduced in the nearest Industrial Training Institutes. He said that each unit setup within the Park will get all the above benefits. In case the Developer, instead of a Park sets up a single unit and fulfils the condition of composite unit, he will also get these benefits.

Adding, Joshi said that these incentives will be in addition to the incentives admissible under the Textile Policy of the State Government which are the exemption from the payment of stamp duty on purchase of land and electricity duty exemption. He clarified that implementation period to complete the project will be 5 years from the date of signing of agreement for Mega Project.