To give a boost to the textile sector an integrated textiles park (ITP) is proposed in Mayurbhanj district under the Scheme for Integrated Textiles Park (SITP) of Union ministry of Textiles.
“We have proposed the Centre for setting up of a textile park spreading over 50 acres of land at Baripada spinning mill compound with a total project cost of Rs 120 crore”, Amit Behera, convenor of the industry body North Odisha Chamber of Commerce and Industry(NOCCi) told Business Standard.
The project cost include Rs 18 crore for land (available in spinning mill campus), Rs 65.5 crore for common infrastructure, Rs 25 crore for common business centre, Rs five crore each for common maintenance facility and common service equipment, among others.
The move from the industry body came after the Central government in a letter to the state government sought proposals from industry associations, group of entrepreneurs, and special purpose vehicles for setting up of integrated textile parks.
A SPV in the name and style of Sri Jagadish Spinning park private Ltd is being promoted, taking all stakeholders on board, for project implementation and management.
The private promoters, NOCCi, Odisha Industrial Infrastructure Development Corporation and Baripada spinning mill will be in the SPV.
The activities to be undertaken at the proposed park are ginning, spinning ,weaving, sizing and stitching.
The proposed sector specific park after completion will have generate employment for 20000 people with a total business potential of Rs 200 crore per annum, annual exports worth Rs 50 crore and Rs 10 crore annual revenue contribution to the exchequer.
According to the scheme, the Centre’s support under the scheme by way of grant or equity will be limited to 40 per cent of the project cost subject to a ceiling of Rs 40 crore for parks. However the Centre will support 90 per cent of the project cost subject to a ceiling of Rs. 40 crore for first two projects in the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Jammu & Kashmir.
About 50 textile industrial units are likely to come up at the park, Behera added.