Even as the Ministry of Textiles (MoT) is encouraging the State Governments to set up integrated textile parks (ITPs), yet stipulations laid by it in forming a special purpose vehicle (SPV) for the purpose is a stumbling block for Odisha to establish such a industrial park, according officials.
As per stipulations, the SPV would require eight entrepreneurs and one-third of them should be from textile manufacturing sector. “Finding entrepreneurs and textile sector investors by the State is a herculean task before setting up an ITP,” said a senior official of the Handlooms, Textiles and Handicrafts Department.
He said entrepreneurs would automatically come to set up their plants when an ITP is ready with all infrastructure but not before that. So MoT asking to bring in eight entrepreneurs with huge investment proposals is just not possible, said the officer.
In fact, the State Government had participated in the expression of interest (EOI) floated by the MoT for setting up a textile park. It was proposed for an ITP in Bhadrakh district, where land and other infrastructure is available.
The Odisha Industrial Infrastructure Development Corporation (Idco) had applied for the proposed ITP in January 2016. However, the MoT is asking for list of investors before providing an in-principle approval for the project.
Once the MoT provides approval, many investors will take interest as Idco is the prime mover for the proposed textile park, opined officials.
Former Minister Manmohan Samal, who supports the proposed ITP, has already brought this matter to the notice of the Union Textiles Minister. But the Ministry is yet to consider the Idco’s proposal, said sources. While the State is still trying to revive the Orissa Textile Mills (OTM) and many spinning mills, the Centre should extend a supporting hand and relax stipulations to set up ITP, feel many.