Association chairman J. Thulasidharan told the SIMA signed an agreement with the Andhra Pradesh Government in 2007 to establish a textile park. The Government identified 5,000 acres for the project.It assured that the units that invested more than Rs.100 crore at the park would get uninterrupted power supply at Rs.1 a unit lesser than the existing tariff and the others would get power at 75 paisa a unit lesser. The Andhra Pradesh Government would also give Rs.5,000 per worker for training.
However, the project had not progressed as the mills were hit by the economic slowdown. Now, at least five units have expressed willingness to start operations in Andhra Pradesh. The labour and power shortage in Tamil Nadu was one of the factors that made the mills explore other destinations for investment.
They would purchase totally about 300 acres in Andhra Pradesh and set up the units individually, he said.The association would establish the park with common facilities when more units came forward to start operations.The association has also revived its proposal to establish a processing park at Cuddalore in Tamil Nadu.