The Hindu Business Line : IL&FS keen on textile proposals

INFRASTRUCTURE Leasing and Financial Services Ltd (IL&FS) is eyeing an opportunity to promote commercially-viable infrastructure projects in cluster-based industries including textiles.

The multi-lateral funding body, which supports infrastructure projects on a commercial format through a private-public initiative, has recently activated a cluster development initiative (CDI).

It has already initiated the process of understanding the needs of Tamil Nadu-based textile clusters in the powerloom sector with regard to building infrastructure at the proposed hi-tech weaving parks in the State, for which the Centre has given `in principle' approval.

As part of the initiative, officials from the IL&FS' CDI on Tuesday interacted with promoters of the four powerloom weaving park projects, sanctioned by the Centre for Palladam (Coimbatore), Komarapalayam, Theni and Erode.

The participation of IL&FS comes in the wake of steps taken by the Ministry of Textiles to merge some of the cluster infrastructure components such as the textile centre infrastructure development scheme (TCIDS) and the group work-shed scheme (GWS), and offer them in a single-project package.

The two infrastructure components carry substantial investment subsidy from the Centre and the State governments.

The Union Government, which has mooted the capital subsidy programme for textile clusters, has also suggested involving a common cluster development agency to monitor the implementation of the projects.

"The IL&FS' current involvement in the infrastructure projects is exploratory in nature and is yet to take a concrete shape. We have been interacting with textile clusters in Coimbatore, Erode, Karur and Tirupur for sometime," said Mr R.C.M. Reddy, Chief Executive Officer, IL&FS' CDI.

He said that his institution would like to ascertain the commercial viability of projects and also whether there would be enough users for such crucial infrastructure projects. The IL&FS, which would provide these infrastructure projects as turnkey solutions to fill the gaps in the physical, marketing and technology infrastructure in cluster industries like textiles, would also be in a position to mobilise the necessary funds by leveraging on the individual promoter's contribution and government grants wherever possible, he added.

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