Apparel Online India Magazine February 1st Issue 2019 | Page 36
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‘Fight’ over the textile industry!
After Patna vs Punjab, is it now Tamil Nadu vs Andhra Pradesh?
L
ast year, after many meetings
and discussions between industry
representatives of Ludhiana (Punjab)
and Bihar Government’s officers,
the buzz that started doing the
rounds was that Ludhiana’s apparel
manufacturing industry was moving
to Bihar. The reasons for the same
although were quite common like
one state of the country offering
better incentives and overall support
compared to the other, though
some stakeholders did have their
apprehensions about the matter at
that time.
Now, a year later, the story is going
to be repeated again but the only
difference is that this time, the two
states which have become the talking
point are Tamil Nadu and Andhra
Pradesh. It is pertinent to mention
here that Tamil Nadu, an established
textile hub right from spinning to
garment manufacturing, shares its
border with Andhra Pradesh where
the textile industry, especially
related to garment manufacturing, is
comparatively very weak.
Andhra Pradesh is now luring the
textile and apparel manufacturing
industry of Tamil Nadu with several
incentives, and in fact, a group of
Tirupur (Tamil Nadu)-based textile
players are in the process to visit
Andhra Pradesh. Already a meeting
between these textile companies’
owners and Andhra’s state officers
has been held.
It is to be noted here that these
developments are taking place
36 Apparel Online India | FEBRUARY 1-15, 2019 | www.apparelresources.com
Subsidies by
Andhra Pradesh
• 25 per cent subsidy
for any capital
investment.
8 per cent interest for
bank loans availed
by companies, which
will be paid by the
Government.
• Rs. 2 in electricity
tariff per unit to
be reduced by the
Government.
in light of Andhra Government
promoting its Kakinada Special
Investment Region by offering
various schemes and subsidies.
Kakinada Industrial Park itself
possesses some natural advantages
like being spread over 8,500
acres, the park has proximity to a
commercial port and railway goods’
facilities.
It is also a well-known fact that the
garment manufacturing industry
can’t grow in silo as the industry
needs fabric, trims, trained
workforce (mid-level professionals as
well as workers) and allied services
like dyeing, washing, printing and
jobworkers. So, states are trying
to create such a system where all
stakeholders can invest. Keeping