K'taka expects Rs 2,000 cr investment from Guj textile firms

The Karnataka government expects Gujarat-based textile firms to invest around Rs 2,000 crore for setting up units in the state to take advantage of its abundant cotton production.

"Mills in Surat (in Gujarat) source cotton from Karnataka to a large measure. We impressed upon them that they can set up units in Karnataka itself which will lower production costs," Karnataka's Textiles Minister Gulihatti D Shekhar told reporters here today. The minister recently held a road-show in Surat which was attended by about 50 investors. Memorandum of Understandings (MoUs) envisaging an investment of around Rs 2,000 crore by Gujarat-based companies, particularly in processing and spinning, are expected to be signed in the Karnataka government-driven Global Investors' Meet (GIM) slated to be held here between June 3 and June 4, he said.

Karnataka produces nine lakh bales of cotton annually. The state's textile sector expects MoUs for investment between Rs 5,000 crore and Rs 10,000 crore to be signed at the GIM, the minister said.