Funds delay slows apparel park work

Work on Ludhiana's apparel park is moving at a snail's pace. The reason? Delay in the release of funds promised by the central government.

This apparel park, a joint collaboration between Punjab Small Industry & Exports Corporation and Apparel Exporters Association of Ludhiana (APPEAL), is the country's second such apparel park "" the other one is at Tirpur

It is worth mentioning here that the entire project spread over 100 acres of land is worth Rs 400 crore and this amount includes a contribution of Rs 20 crore from the central government for infrastructure development.

This project includes a commercial centre, training center and a shopping complex besides it is all set to have 115 textile units which include big players like Aryan Oswal, Shreyans, Oster, Duke, Counsel and Pee Jay etc and would also generate employment for almost 25,000 people from the state.

The project can also prove helpful in achieving the Rs 50-billion export target set by the Ministry of Textile by the year 2010 against Rs 6 billion last year.

Speaking to Business Standard, Sanjeev Gupta, managing director of the apparel park said the funds for the project are being released on reimbursement basis, which in itself is a very slow process.

"It leaves a lot of space for red tapism whereas under its new scheme of integrated textile park it is just the opposite. If our project is also transferred under the same scheme it would help in speeding up the process and solving our problem whereby we will be able to finish our project in time.''

Further, Gupta said that till now, against bills of Rs 1 crore 7 lakh, the Center had released a meagre amount of Rs 5 lakh only.

"The project, after its sanction in March 2003 was supposed to be completed by December 2007, but the lack of quick disbursal of funds is delaying the project.''

Gupta says if the project is made successful by the government it will not only help exporters to take an advantage of the opportunity created by the phasing out of the multifiber agreement with Europe, America and Canada, but would also motivate enterprising people to come together for such initiatives.

Many of the government plans have lapsed due to the lack of initiative by the people.

On one hand government says that it needs enterprising people on the other hand it does not support the people who take such initiatives."