The Hindu Business Line : AP Govt urged to encourage coir units

The Andhra Pradesh Government should encourage coir units in the State by imposing certain restrictions on the use of coconut husk for non-industrial purposes and waiving VAT on coir products like the neighbouring Southern states, said Mr A.C. Jose, Chairman of the Coir Board.

He made the plea at the inaugural session of a one-day seminar on coir industry in Andhra Pradesh organised by the board on Sunday.

He said that out of an estimated production of 1,129 million nuts in the State, only 722 million were available for industrial use. There is a need therefore for imposing curbs on using husk as fuel.

The coir industry was slowly gaining impetus in Andhra Pradesh and the State Government should encourage it by waiving VAT on coir products. The use of husk for coir industry is 35 per cent at the all-India level and only 31 per cent in Andhra Pradesh. Therefore, there is tremendous scope for improvement in the State, he said.

CLUSTERS PLANNED

On its part, the board would encourage cluster development, introduction of motorized traditional ratt for the production of quality yarn, and imparting training to workers, besides giving incentives and subsidies for setting up units.

The industry has great potential for generating employment in rural areas, especially for rural women, and as many as one lakh jobs can be created in the state, he added.

As the Godavari districts accounted for the bulk of coconut production in the State, the board had decided to shift the regional office from Visakhapatnam to Rajahmundry. A training centre would also be set up here.