Punjab to establish four textile parks on PPP basis

The textile industry of Punjab, which caters for more than 80 per cent of total demand of hosiery material of the country, is set to get a big boost as the state government has decided to establish four textile parks in the state on a public-private partnership (PPP) basis.

Punjab has immense potential to grow in the textile industry and keeping in mind the lifting of the textile quota system, if appropriate infrastructure was provided to the industry, it could flourish several times, Punjab Industry Minister Monoranjan Kalia said.

Unveiling the details of the proposed textile parks, the state industry minister revealed that work on Punjab Apparel Park Ltd has already been initiated at Doraha near the textile city of Ludhiana and 30 acres of land had already been earmarked for another project Punjab Integrated Textile Park and work on the project would begin soon.

Two more textile parks, including one by Abhishekh Industry at Barnala with an estimated cost of Rs 110 crore, has already been cleared and work on another textile park at Lodhowal near Phillaur would begin soon for which the state industry department has already put a requisition for transfer of 250 acres from agriculture department, Kalia said.

The minister said that for successful operation of such parks, special purpose vehicles (SPVs) would be establishment and the Centre would extend a grant of 40 per cent of the total cost of the project.

About the cost of proposed textile parks, he said each textile park would be of more than Rs 100 crore and after establishment of such park, Punjab would emerge as a global textile hub.

Kalia further said the state government had also written to the Centre to establish one more textile park on the pattern of already existing ones, as the city's textile industry had the potential to grow and earn foreign exchange through exports.

The state industry minister said the state government had decided to enact Industrial Infrastructure Maintenance Act under which special purpose vehicles (SPVs) would be establishment for the overall maintenance and upgrade of existing focal points.

Initially when focal points were established in different cities of the state, it was decided that for the first five years Punjab State Industrial Corporation would construct infrastructure and after that their maintenance would be handed to municipal corporations but due of various reasons, maintenance work could not be done on expected lines, he said, adding that under the new Act arrangements would be made for maintenance of industrial towns.

He said the proposal for constructing a new focal point on 294 acres was finalised and the jail department had transferred land for the purpose. The state had recommended 12 SEZs to the Centre for approval, of which eight had been given formal approval, and four in-principle approval.

"We have recently recommended another proposal by Malhotra Land Developers and Colonisers for construction of an SEZ and hope that same will be cleared soon", the minister said.