To get a pie of the booming textile business in the South Eastern Asian region, a mega textile park has been sanctioned by the Assam government which will be built with an estimated cost of Rs 54.31 crore spread across an area of 60.01 acres in Darrang district in lower Assam.

The park will be developed by a private entity, Pragjoyti Textile Private Limited under the Special Vehicle Purpose (SPV) company on which 20 per cent stakes will be held by a company named Prag Bosimi Synthetics Limited and the rest 80 per cent will be held by industries with the textile background.

There will be a slew of exemptions available to the textile units set up in the park under the Industrial and Investment Policy of Assam, 2019.

There will be reimbursement of 100 per cent SGST on fixed capital investment.

The textile units will also get a 2 per cent power subsidy for five years, subject to a maximum of Rs. 50 lakh per annum.

Moreover, 100 per cent stamp duty reimbursement, interest subsidy on working capital loans, and incentives for private sector infrastructure developers will be available to the units set up in the park.

A senior official of the Assam Industries and Commerce Department told Business Northeast that other than generating employment, the integrated set-up of the park would create new business avenues and stimulate investment in the textile sector.

The products developed in the textile park would be of international standards with competitive and cost-effective manufacturing to compete with textile products of neighbouring Bangladesh.
There are also plans for a dedicated infrastructure which would be created around the park that includes roadways, high power electric supplies, communication cables and water supply etc.

The entire process of weaving, dying and producing the finished product would be completed under one roof. Arrangements would be done for the marketing of finished products from the textile park itself.

It may be mentioned here that the Centre has announced a scheme known as the Mega Integrated Textile Region and Apparel (PM MITRA), in Budget 2021 to make the textile industry globally competitive. It was given a budget of Rs. 4,445 crore for seven years up to 2027-28.

India’s textile and apparel exporters complain that a largely fragmented supply chain and higher logistics costs push up the cost of production— one reason why export orders have steadily moved to countries such as Bangladesh and Vietnam.

These mega parks, textile makers say, could help return textile orders as a result of a planned integrated textiles value chain— including spinning, weaving and processing— at a single location.

ALSO READ: Assam Govt will invest Rs. 5,000 cr on solar power