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Friday, Jul 04, 2003

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Industry & Economy - Knitwear & Hosiery

Tirupur apparel park to spur new township

G. Gurumurthy


THE Netaji Apparel Park (NAP) project for Tirupur which is to come up in the close proximity to the National Highway No. 47 between Perumanallur and Avinashi will spur the momentum for a new township as the proposed park site has been chosen on a virgin village terrain some 11 km away from the highly congested Tirupur Municipal area.

Incidentally, the Tirupur Exporters' Association (TEA), promoters of the special purpose vehicle NAP, has chosen to name the village in whose limits the proposed park area comes as the New Tirupur. The NAP is to come up on a 180-acre site in Ettiveerampalayam village. Being implemented under the Central Government sponsored apparel parks project scheme, the Ministry of Textiles which is keen on promoting an exclusive knitwear apparel park in Tirupur, has already committed its share of financial support in the form of a grant up to 75 per cent of the infrastructure project cost for the NAP besides pledging grants for marketing and information and other common utilities. To start with, the NAP would have an initial investment in plant and buildings to be brought in by private entrepreneurs engaged in knitwear production of Rs 300 crore The first phase of the project is expected to have 45 production units of 20,000 sq ft area each and another 10 units with 40,000 sq ft each. The TEA has projected that the NAP would become functional within the next 15 to 18 months. The park area would be dedicated for dry production process of knitting and finishing-line operations, which would largely cater to export production and the total value of production in the NAP is expected in the order of Rs 1,500 crore.

The Tamil Nadu Government, which has also extended its support to the establishment of the NAP in Tirupur, has offered 50 per cent concession in payment of stamp duty for registration of land acquired for the NAP. The TEA has sought the financial support under the ASIDE (accelerated state infrastructure development for exports) programme, which would go in strengthening the link roads connecting Tirupur export zone.

According to the TEA President, Mr A Sakthivel, considering the potential for growth and investment flow into the park, the financial institutions and banks are evincing interest in extending term loans and working capital facilities for the promoters of the project. Once the NAP becomes fully functional, additional 21,000 new jobs would be available benefiting the people in the vicinity.

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