The Hindu Business Line : SIMA in talks with IL&FS for processing project

THE Southern India Mills Association (SIMA) which proposes a common infrastructure project for textile wet processing at Cuddalore is in talks with Infrastructure Leasing and Financial Services Ltd (IL&FS) to rope in the latter in the project promotion, including equity participation.

IL&FS, which is keen on promoting infrastructure projects for textile clusters, has called for details of SIMA's Cuddalore textile processing project. The Cuddalore project is billed to draw an initial investment of around Rs 600 crore.

Indications are that a fusion of SIMA-IL&FS partnership in the project promotion may happen once the Central Government sews up its scheme of amalgamating different incentive schemes now in operation for the textile centre infrastructure projects. It is likely that the Centre may come out with the revamped capital incentive scheme for textile infrastructure projects in a couple of weeks.

Confirming the development, the SIMA Chairman, Mr Vijay Venkataswamy, said the association was in the process of forming a special purpose vehicle for the Cuddalore project, named as SIMA Textile Processing Centre and the modalities for achieving this is being discussed with both IL&FS and individual stakeholders participating in the Cuddalore project.

SIMA, which has sought land from the State Government, has been offered 300 acres at the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate in Periyapattu village near Cuddalore and the association has earmarked them for nine textile companies. The units have also agreed to meet the immediate investment requirements.

According to the SIMA Chairman, all the formalities involved in land acquisition would be gone through by the end of next month or early August.

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