Textile units expansion plan on cards in Vidarbha

Vidarbha is expected to get much-needed boost with a fresh investment of Rs 3,000 crore likely in textile sector through 26 projects, says Maha Min for Textile Mohd Arif Naseem Khan

'Advantage Vidarbha', an initiative by Maharashtra government in February this year to invite and attract potential investors into this backward region of Maharashtra has started paying dividends with some big companies setting up their units there.

After public sector undertaking, Bharat Heavy Electricals Limted (BHEL), launched its equipment manufacturing unit in Sakoli in neighbouring Gondia district recently, its now the turn of textile giant Raymonds to set up a new unit in Vidarbha.      

Raymonds, which had announced its expansion plans in the region during Advantage Vidarbha, was allotted 25 acres of land early this month for the purpose in Yavatmal district where the company already has a major presence, Maharashtra Minister for Textile Mohd Arif Naseem Khan said.

The expansion plan of Raymonds may involve infusion of fresh capital in the range of Rs  300-400 crore by the company.

"Vidarbha is expected to get much-needed boost with a fresh investment of Rs  3,000 crore likely in textile sector through 26 projects. These new ventures have a potential to generate 3,500 new jobs," Khan said.

The state textile ministry had announced a new policy around two years ago in which an additional 10 per cent subsidy is given to investors coming to cotton growing regions of Vidarbha and Marathwada.      

The state-sponsored event had managed to attract a number of investors to this sector and the results are now showing.

Of the new projects, 19 are based on the new textile policy while seven materialised during Advantage Vidarbha, Khan said.

"Besides Yavatmal, prospective units are showing huge interest in Amravati followed by industrial estate at Butibori,"  the Minister said.

Khan said the new policy under the guidance of Chief Minister Prithiviraj Chavan was aimed at making most of the cotton grown in Vidarbha.

Not even one-fourth of the 90 lakh quintals of cotton grown in state was consumed within Maharashtra.

One of the reasons the cotton growing area remained impoverished was the lack of industrial units processing raw cotton up to the textile stage.

It is believed that if textile units come up here it would not only provide employment to a lot of youth but also provide better rates to the commodity.

This income boost to the economy is seen as a sure way to resolve the agrarian crisis that has manifested through high rate of suicide among cotton growers.

"The state textile ministry is also in the process of expediting delinking the Central government's Textile Up-gradation Funds Scheme (TUFs) with the new policy so as to overcome the limits on the unique identity numbers allocated by the Centre to avail of the scheme," Khan said.

Expressing his happiness, Maharashtra Minister for Social Justice and Nagpur District Guardian Minister, Shivajrao Moghe who was brain behind 'Advantage Vidarbha' conference here has welcomed the expansion plans in Yavatmal.

"We are expecting some more investments in near future," he added.