The Hindu Business Line : Naidupet Textile Park: SIMA hopeful of starting work soon

Proximity to the international airport and the port at Chennai seems to have played a major role in attracting the SIMA members from Tamil Nadu to set up units in the park.

Hyderabad April 23 The Southern India Mills' Association (SIMA) is hopeful of commencing construction work at the Naidupet Textile Park project site in the next two months.

"The units are likely to start functioning by the year-end," Dr K. Selvaraju, Secretary-General of SIMA, told Business Line.

The Park, promoted by SIMA, envisages total investments to the tune of Rs 1,200 crore from seven to eight leading textile manufacturers such as Loyal Textiles and Ramakrishna Mills from Coimbatore.

The Andhra Pradesh Government has allocated 500 acres at Menakuru in Nellore district for the park that would house spinning, weaving, knitting and garments units. "We expect that marking (of 500 acres) will be completed in a month paving the way for the development of the site," he said.

Advantage

Proximity to the international airport and the port at Chennai seems to have played a major role in attracting the SIMA members from Tamil Nadu to set up units in the Park.

"Besides, a low power tariff and other incentives announced by the Andhra Pradesh Government too played a major role," Dr Selvaraju said.

The Park is estimated to create about 15,000 jobs in the industrially-backward district of Nellore. The State Government assured reliable water supply to the park from the Telugu Ganga canal.

Appeal

Meanwhile, the SIMA has appealed to the Chief Minister, Dr Y.S. Rajasekhara Reddy, to ensure uninterrupted power supply to the textile industry.

"The power situation is worsening. Some mills in the State are reporting a production loss of 15 per cent on this count," Mr S.V. Arumugam, Chairman of SIMA, said.

In a representation to the Government, he pointed out that the textile industry was a power-intensive one requiring power throughout the day. "The problem is more severe in CPDCL (Central Power Distribution Company) area with power cuts ranging between 4-6 hours a day," he said.

The SIMA Chairman wanted the Chief Minister to direct the power distribution companies to ensure uninterrupted power to the textile industry in order to enable it to sustain its competitiveness globally.

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