Apparel Online India Magazine May 1-15, 2019 | Page 20

LEAD STORY
Organised units operational in Odisha
• Shahi Exports
• Madura Fashion & Lifestyle
• Monk & Mei
Units planned, but no major breakthrough*
• Kitex Garments (announced investment of Rs. 177 crore a year ago)
• Page Industries (got approval for a unit with an investment of
Rs. 135.50 crore in 2017)
• Texport Industries (announced investment of Rs. 75 crore in 2017)
[*Information based on market sources and media reports]
• One of the incubation centres for apparel industry was announced in
Odisha and even tenders were invited, but even after many months
there is nothing concrete on ground level.
• In October 2015, Delhi had an annual conference of State Textiles
Ministers where Apparel Online asked Snehangini Chhuria, Textile
Minister, Odisha about upcoming garmenting set-ups in the state apart
from giants like Shahi Exports and Aditya Birla Group to which she had
no concrete answer… Still after four years, things have not improved…!
Some of the major facilities offered in Odisha
Employment and investment-based incentives: Rs. 1,500 per worker
per month for 36 months to apparel units with minimum 200 workers.
Additional incentives available in the case of more than Rs. 50 to Rs. 100
crore investments in backward/other districts
Incentives to apparel parks:
Capital grant – 20% of project cost of the park up to Rs. 20 crore, interest-
free loan up to 10%, and maximum limit of Rs. l0 crore
Anchor tenant subsidy:
25% subsidy on cost of land, VAT reimbursement for up to 9 years
Additional fiscal incentives:
5% interest subsidy per annum on term loan for a period of 5 years
100% reimbursement of ESI and EPF:
3 years for displaced workers and 5 years for persons with disabilities
100% exemption on Stamp Duty
Electricity Duty exemption up to a contract demand of 5 MVA for a
period of 5 years
VAT reimbursement of 100% for 7 years to new industrial units
100% Entry Tax reimbursement on acquisition of plant & machinery and
purchase of raw materials for 5 years
20 Apparel Online India | MAY 1-15, 2019 | www.apparelresources.com
massive hike, though done after three
years. Another allied and more serious
problem is that of high absenteeism
which has adversely affected the apparel
industry of the state. Monk & Mei, just
a year old SME unit in the Mancheswar
Industrial Area, Bhubaneswar where
the giants have their units, is facing very
high absenteeism rate which is totally
against the planning or imagination of the
company’s management. Raj Kumar, COO
of the company who has over four decades’
experience, having worked with various
giant companies, shared, “We are facing
at least 15 per cent monthly absenteeism
which is quite high and totally unjustified.
And this is without any pre-planning or
information by the workers. SMEs like us
can’t afford to have extra workforce to
overcome this absenteeism.” The company
initially hoped that these workers are
now close to their hometown and will
work more ‘happily’ and ‘comfortably’
compared to their working as ‘migratory
workers’ in Tirupur or any other such
hubs. But while working near to their
home, workers take leave even for petty
reasons. Despite the best efforts, like
counselling and motivational schemes, the
issue of absenteeism has not solved much.
“More or less, the situation here is similar
for most factories, but while big factories
can manage, for us it is a bit hard,” added
Raj Kumar.
Combination of wage hike with high
absenteeism is like spoiling the game,
because factories were expecting
benefits due to lucrative policies of the
state (see box – Some of the major
facilities offered in Odisha).
No ancillary support
Apart from the above mentioned reasons,
one of the main reasons that is still
a hurdle for many medium or good
size companies is not availability of
ancillary support yet even after four
years. “In case of requirement of any raw
material – be it fabric or trim/accessory –
we are not able to get that in Odisha as we
can get the same in any developed hub. We
have to pay much more; quality product is
not available or it is not available on time,”
shared Raj Kumar, adding further that
industry needs concentrated efforts so that
all facilities can be available here.
As per the official information, Odisha
Polyfibre Ltd. (Odisha Synthetics) has a
project of Rs.14.17 crore at Dhenkanal;