30000 Cr Investement in Coimbatore textile region
Investments worth about Rs 60,000 crore are likely to happen in the textile sector in Tamil Nadu during the 11th Plan period. About 50% of this would be in the Coimbatore region. Estimates by the textile experts are based on the vision paper of the Confederation of Textile Industry (CITI). In its Vision 2012 CITI estimates that to increase production and exports of textiles to Rs 4,95,000 crore and Rs 2,70,000 crore, respectively, investments worth over Rs 1,94,000 crore, have to be made by 2012.Tamil Nadu accounts for over 30% of the textile production and export from the country (50% of this is from the Coimbatore region). To keep pace with the developments elsewhere in the country and world markets, the textile mills in Tamil Nadu are embarking on major investments, both collectively and in the individual mills level. The Centre has permitted, as part of the national programme, weaving and handloom parks in the state.
The state government has approved a fabric processing zone and is planning to set up a special economic zone (SEZ) for the cotton-based industries.Sources in the Southern India Mills Association (SIMA) told FE that more than 24 mills in the region have been planning investments ranging from Rs 200 crore to Rs 500 crore for massive expansion.Investments would be in spinning, up to Rs 1.8 lakh spindles, and in forward integration to weaving, processing and garmenting. SIMA is spearheading the setting up of a textile processing cluster in Cuddalore.This would be the first such centre in the country and would be developed into a model, SIMA officials said. The Tamil Nadu government is expected to formally announce the plan to set up a SEZ for cotton-based industries near Coimbatore. The rural industries minister Pongalur N Palanisamy recently said that the land has been identified and the chief minister would make the announcement in the assembly shortly.
