The Hindu Business Line : `TN attracted maximum FDI in last six months'

Tamil Nadu has managed to attract maximum FDI in the last six months, said the Union Minister of State for Textiles, Mr E.V.K.S. Elangovan. When asked how much of this has gone to the textile industry, the Minister did not quantify, but maintained that the Indian textile industry was in a much stronger position than in the past. "The Centre is taking all steps to see that the industry attracts higher investments and achieves higher production and exports," he said.

Textile parks

Mr Elangovan was here to address members of the South India Small Spinners Association. He informed members that the Centre recently rolled out a `Scheme for Integrated Textile Park' by merging two existing schemes.

"The effort is aimed at providing world-class infrastructure for the setting up of textile units. Twenty-six textile parks have been sanctioned under the new scheme on an estimated project outlay of Rs 2,428 crore. The Centre's share in this project has been pegged at Rs 866 crore," he said and added that five of these have been proposed in Tamil Nadu at Cuddalore, Perundurai, Palladam, Komarapalayam and Erode.

Hailing the performance of the industry on the export front, he said the 22 per cent growth recorded in 2005-06 was much higher compared with the previous year and the growth in the readymade and home textiles articles was significant.

Quality front

"The Indian textile industry has stood out on the quality front. Our growth is not benchmarked on profitability but in ensuring quality," the Minister said comparing the size of the units and the production volumes with China.

At the present pace of development, the Government envisions spindleage to increase from 39.27 million at the end of August 2006 to 39.66 million by the close of the current fiscal.

"While a number of sectors are still lagging in investment, the TUF scheme has given a boost to the textile industry," said the Additional Commissioner for Textiles Mr. H.S. Das. According to him, a conducive environment and friendly policy would trigger growth.

Investments

"While the year-on-year investments in the textile sector has doubled since 2003, the momentum appears to have slowed in the last one month. The number of applications for TUF under the 20 per cent capital subsidy scheme has slipped in the last one month," he said.

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