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To prevent closure of the dyeing industry in Tirupur that threatened to hit the garmenting sector in the region, the government on Wednesday sanctioned Rs 200 crore to dyeing units. The units are on the verge of closure due to severe financial crisis on account of huge investments in the “first ever” zero liquid discharge (ZLD) projects in the country.
Tirupur, a hub of the textile processing and knitting industry in Tamil Nadu, provides employment to over five lakh persons and contributes 22 per cent to the country’s total garment exports.
Taking cognizance of the problem of the dyeing industry in Tirupur and on recommendation of the Ministry of Textiles, the Finance Ministry of Finance has sanctioned Rs 200 crore to the Tamil Nadu government for the 18 common effluent treatment plants (CETPs) as an interest-free loan to be converted into grant, based on their performance, an official release said
“The move will help ailing CETPs and 450 dyeing units to recover from the financial crisis and help them to a complete the project to achieve 100 per cent capacity utilisation,” the release.
More than 450 units in Tirupur dyeing industry had collectively set up 18 ZLD-enabled CETPs with a total cost of Rs 1,013 crore. However, the project faced several technical challenges and cost overruns leading to outstanding bank loans and incomplete projects.
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