Andhra Pradesh Jute Development Centre Ltd (APJDC), a special purpose vehicle (SPV) lauched by jute mill owners in Andhra Pradesh for setting up a jute park spread over 150-acre land in Sabbavaram Mandal in Visakhapatnam, with an investment of Rs 100 crore, plans to give up to a total of 5 per cent equity to jute farmers in the region.

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The minimum investment required by a farmer would be Rs 10,000, and the SPV aimed to garner Rs 5 crore through farmers participation, said B V Rama Rao, chairman and managing director, APJDC.

The Union ministry of textiles would provide Rs 40 crore grant for the jute park, and the remaining Rs 60 crore will be garnered through various state government agencies, anchor partners and farmers, he said.

The state government would supply power at a subsidised rate of 70 paise per unit for the jute park, he said. Meanwhile, major part of raw jute for the four composite mills to be set up in the facility, will be sourced from Bangladesh, and not from West Bengal, said Rao.

APJDC is also planning to organise awareness camps to promote jute cultivation and establishment of jute industrial units in the park.

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