Gujarat government approves five textile parks

Industry news

Gujarat government approves five textile parks

The Gujarat government has in-principle, approved financial assistance to five textile parks under the Gujarat Textile Policy of 2012, of which, two are spinning parks. Two of the five parks will come up in Surat, two in Bharuch and one in Kheda. The five parks are proposed to come up at an investment of Rs 3.38 billion.

Government assistance to the tune of Rs 659.90 million will be extended for development of common infrastructure. For the spinning parks, state assistance will be to the tune of Rs 300 million, or upto 50% of the project cost, whichever is higher. The spinning parks are expected to have 400,000 spindle installations.

The five parks are expected to generate 16,000 direct jobs, and 21,000 indirect jobs. The government has also approved interest subsidy and VAT concessions to 16 spinning, weaving, readymade garment and knitted fabric units.