The Hindu Business Line : Weaving park plans yet to take off

THE hi-tech weaving park proposals mooted by the decentralised powerloom weavers in the State is yet to get off the ground due to delay in securing the State Government's approval and lack of cohesion among the weavers willing to invest in the projects.

The stalemate in implementation of these parks, four in number, continues even after 10 months since none of the four projects has so far received the `in-principle' approval from the Government, a pre-requisite for the launch.

This is despite the individual regional powerloom weavers' bodies that are behind the promotion of these parks evincing interest in participating in the programme and set in motion the land acquisition through private negotiations.

It is said that there are about 250 investors involved in the proposed parks in Palladam, Komarapalayam, Erode, Andipatti, who have made their initial share of cash contributions towards land acquisition, and are awaiting Government approval. The combined investment (plant, machinery, infrastructure etc.) that may fructify in the event the project gets going would be Rs 400-crore, the largest being the Palladam park with an investment of Rs 145 crore. These parks are estimated to get subsidy for infrastructure of Rs 20 crore each (which will be divided between the Centre and the State Government at 75:25).

The `in principle' approval from the Government will fetch them the crucial 25 per cent capital subsidy under the Centrally-sponsored Textile Centre Infrastructure Development Scheme (TCIDS) envisaged in the programme and ensure 100 per cent exemption from payment of stamp duty for individual investors acquiring land for the setting up of plant and machinery.

The Palladam Hitech Weaving Park, whose project proposal is believed to have reached the advanced stage for implementation, could manage to get from the State Government only 50 per cent stamp duty exemption for the park land, and the `in principle' approval is yet to be granted.

The powerloom weaver-investors from Palladam, Erode, Komarapalayam and Andipatti, who gathered here recently, were anxious to know how much capital subsidy the Government would provide if they started their ventures in the weaving park projects.

This is because of the total spending on basic infrastructure for the park, the Centre should bear 75 per cent cost, while the remaining 25 per cent comes from the State.

For example, in the case of Palladam, of the estimated Rs 25.87 crore outlay for the infrastructure under the TCIDS, the State Government will have to bear Rs 5.87 crore ande the Union Government the rest.

The Textile Commissioner, Mr Subodh Kumar, who attended the meet suggested that they move ahead with the project if they wanted to avoid the cost over-run considering the fact that "time-saved is cost-saved."

But a section of the Palladam park promoters is sceptical about launching the project without the State Government's nod as the active co-operation of the State for further development of the park would be needed.