Karnataka Targets Rs 10,000 cr Investment in Textile by 2018

Karnataka Targets Rs 10,000 cr Investment in Textile by 2018

The Karnataka government aims to attract Rs 10,000 crore investment in the textile sector during the five-year period of the new textile policy from 2013 to 2018, a growth of close to three times over the previous policy period. The government is also looking to create jobs for about half a million during the next five years.

“During the last five year-ended 2013, the state has attracted an investment of Rs 3,500 crore as against the targetted investment of Rs 5,000 crore in the textile sector. Also, during this period, about 250,000 jobs were created in the sector. We have now released a new textile policy for a period of five years from 2013 through which we are aiming at attracting higher investments and create huge employment,” chief minister Siddaramaiah said.

Speaking at the Textile Investors’ Meet recently he said, Karnataka has emerged as among the top five industrialised states with over 500 global companies and 66 global Fortune 500 companies doing business in the state.

“We have been responding adequately to the growing infrastructure needs and are continuously upgrading investments in infrastructure with several mega projects under implementation and many are in the pipeline,” Mr. Siddaramaiah said.

He said, government has taken some bold steps in making the new textile policy growth-oriented. They are: investment bracket-wise incentives to ensure proper spread of incentives, special focus for development of backward areas by providing more support for parks in such zones, supporting existing industry by providing key common infrastructure through brownfield project developments, supporting integrated units (more than one textile activity) with some additional incentives and lastly, clear guidelines for mega project investments.

Further the government is encouraging setting up of major textile parks and textile clusters vis-a-vis skill development programmes. The new policy aims to promote entrepreneurship and attract investors. Care has been taken to ensure that an inclusive approach of development right from the handlooms sector up to the high-end garmenting sector of the textile value chain is supported as a part of the policy, he said.

The state has encouraged setting up of smaller textile parks in various potential districts such as Bagalkot, Belgaum, Bijapur, Chamrajnagar, Chikkaballapur and Mysore. A mega textile park is also being planned on a 1,000-acre plot in Yadgir, he said adding that the government would facilitate investors to set up new units in Yadgir.

Even as the textile industry continues to be the second largest employment generating sector in India, Mr. Siddaramaiah is leaving no stone unturned to assure investors full support from every entity of the Karnataka government in facilitating further investments and employment creation in the state.

Investments have largely come in the form of mega project investments with project sizes averaging over Rs 100 crore. MSME-based industrial clusters and cluster-based textile parks are also planned with the incoming investments.

Meanwhile, additional chief secretary, commerce and industries department, Ratna Prabha said that there will be hassle-free single-window clearance land allotments for all projects and urged the existing units to move beyond Bangalore to locations like Yadgir where 3,300 acres of land is available to set up new units. “Moving beyond Bangalore, a textile park coming up in Yadgir district helps rural women to get employment within their vicinity. The textile sector is becoming fashionable and is attracting many young women”, Ratna Prabha said.