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G. Gurumurthy

COIMBATORE, Aug. 1

THE knitwear industry's proposal for exclusive apparel park for the hosiery sector in Tirupur under the Central Government sponsored apparel park programme is hanging fire for want of sanction from the Tamil Nadu Government.

The State Government clearance is mandatory before the Centre sanctions the Rs17 crore grant for the park.

In Tirupur's case, the local knitwear industry's request to locate the park in Tirupur was conceded by the Centre. Later a detailed project report was sent to the State Government two months ago, followed by a few rounds of meetings with the State Government officials.

Despite this, the knitwear industry was yet to get the Tamil Nadu Government's sanction, sources said.

The delay has come as a worry for the Tirupur knitwear industry, especially in the backdrop of several States vying for locating the apparel parks in their respective regions.

They fear Tirupur may miss the bus and the Central outlay may go to early birds on first-come-first served basis.

The Tirupur Exporters Association (TEA), the prime mover for the knitwear park project, has recently written to the Department of Handlooms and Textiles, the nodal State Government agency, to urgently deal with the proposal.

It has even expressed its readiness to bear the State Government's share of 25 per cent of the capital cost for building infrastructure for the apparel park, in order to avoid delay in securing the State's sanction.

This offer from TEA would be in addition to the industrial association's earlier offer of meeting the cost of the land for the apparel park project.

It is said the TEA officials had agreed to get the required land through private purchases, as there were no Government lands available in the area chosen for the park.

As per the guidelines fixed by the Centre for the `Apparel Park' programme, the respective State Government has to give suitable land for the park project free of cost and a 25 per cent share in the capital cost of infrastructure such as building and road to be developed in the park area.

In Tirupur's case, the share of the State Government, it is said, would work out to Rs 3.25 crore.

The Centre's policy guidelines spell the State Government's support for any such apparel park venture as a pre-requisite because the minimum land required for these parks would be anywhere above 200 acres and it is said the sale of land to be involved in the project would have to be exempt from stamp duty.

Of the outer grant-in-aid limit of Rs 17 crore allowed by the Centre for each of the apparel park project, the capital cost for infrastructure will be Rs 10 crore, while another Rs 5 crore would be needed for creating common facilities such as effluent treatment, working women's hostel, etc and Rs 2 crore for the R&D.

According to information available, already 67 hosiery industries have offered to participate in the Tirupur apparel park project.

Promoters of each unit have committed to take about 140 acres of land for putting up their factories in the park for which quite a few have even parked their funds.

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