MP Gears Up To Attract Investments In Textile Sector

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MP Gears Up To Attract Investments In Textile Sector

The state government of Madhya Pradesh is promoting textiles as one of the key sectors for the state economy which has shown an impressive growth of over 14% in the last few years. Despite the ongoing slowdown and headwinds, the state has recently attracted an invested worth over Rs 3100 crore, recently. The announcement to this effect was made by the state chief minister, Kamal Nath recently during a textile and garment sector roundtable held in New Delhi. Trident Ltd, the flagship company of Trident Group, has expressed its desire to further expand its presence in the state with a fresh investment of Rs 3,000 crore. This investment by Trident group has employment generation potential of 10,000 people. Trident Ltd, one of the largest integrated home textiles manufacturers in the world, has a bedlinen manufacturing plant in Budhni, Madhya Pradesh. The facility has capacity of 43.2 million metres per annum and is home to 500 looms. The company also has the world's largest standalone terry towel manufacturing facility at its existing location. The state government's investor-friendly policies have generated quite an overwhelming response from the industry as it continues to bet big on the state. Despite the challenging market condition that is prevailing currently, textile players like Mayur Uniquoters, Gokaldas Exports and Pratibha Syntex have also decided to invest in the state. Announcing this during the recent round table, the CM has said that Mayur Uniquoters and Gokaldas Exports would investments Rs 100 crore and Rs 50 crore, respectively, with a potential of generating employment for 1,000 people & 3,000 people. Pratibha Syntex will also set up a textile park for MSME units in Indore with an investment of Rs 100 crore. Apart from clusters known for its traditional goods and products, the state also houses around 60 large textiles mills. These large players, employing 100,000 people, together host over 2.4 million spindles, 32,000 rotors and 4,200 looms. Among large ones, key names include players like Raymond, Trident Group, Vardhman, Grasim, Century Textiles and Nahar Spinning. The state government has marked textile industry as one of the priority sectors, in order to further strengthen the sector in the state. The state government has announced several incentive packages for the textile industry, which are over and above the schemes and incentives announced for other industries. Apart from, various Central government initiatives, the state government is also providing multiple schemes and policy measures that the textile industry is benefitting from. The state has India's only `tax delinked' investment assistance policy which focuses on employment generation, priority block development and export promotion. There are incentives and assistance available including rebate on discounted tariff, infrastructure development assistance. Interest subsidy of 5-7% is available for purchase of ATUFS-approved machinery. The state also provides green industrialisation assistance for setting up effluent treatment plants, common effluent treatment plants and waste processing facilities. Besides all these, the MP government has decided to implement several measures to further boost ease of doing business in the state. The state will take up policy for incentivising composite and integrated units in textile sector. The government has urged private developers to come forward for the development of garment park at Barlai (20 kms from Indore on way to Dewas) on a public-private-partnership (PPP) model. Any industry with investment lesser than Rs 100 crore but employing more than 500 people, will be considered mega industry and will be eligible for customised package. As per the existing scheme, industries with Rs 100 crore or more investment were considered mega industries for which customised package used to be approved by Cabinet Committee for Investment Promotion. While highly developed infrastructure makes MP one of the favourite destinations for textile manufacturing activities, the state is also blessed with all necessary raw material, ranging from cotton to manmade fibres as also availability of manpower. Cotton production in the state has increased consistently in the last few years from 1.8 million bales in 2015-16 to 2.4 million bales in 2018-19 and this has offered consistent supply of the raw material for cotton textile manufacturing activities. Exports of cotton yarn from the state stood at $350.87 million in 2017-18 and formed around 7% of the state's total exports during the year. Besides, the state also produces around 200 metric tonnes of raw silk.