The Tamil Nadu government has approved setting up of six mini textile parks in the State and eight more are awaiting approval.
Textile Commissioner, Tamil Nadu government, M. Vallalar, said “We have given life to the scheme that was dormant since 2015. It will start gaining momentum now.”
The scheme offers 50 % or Rs 2.5 crores subsidy to develop common facilities in a mini textile park. The park can come up on minimum two acres and with just three units. The stakeholders should identify land, form a special purpose vehicle, and submit a detailed project report.
Across the State, about 20 DPRs have been received for the scheme. “There are eight project from in and around Madurai. In Coimbatore, the slowdown has affected the textile industry and hence the response is gradually picking up,” he said.
Textile spinning mills will require more space and hence, the scheme will benefit those in the post-spinning operations, such as weaving, garmenting or finishing.
If the park is set up in backward blocks of the district, the units can avail of capital subsidy from the MSME Department. Some of the weaving units in Kannur area have evinced interest, they added.