M'rashtra gets Rs 1,550cr investment proposals in textiles

The Maharashtra government has received investment proposals worth Rs 1,550 crore in the textile sector after it announced a new policy to boost development in the cotton-growing regions of the state.

The government has received expressions of interest (EoIs) from five private sector companies, who want to set up textile processing units in Marathwada, Vidarbha and North Maharashtra, textiles minister Mohammed Arif Naseem Khan told reporters here today.

The firm who have sent EoIs are Oswal Spinning and Weaving (Rs 350 crore), Itco Spinners Pvt Ltd (Rs 300 crore), Ginnie International (Rs 350 crore), Praveen Shelley (Rs 250 crore) and Aegen Industries (Rs 300 crore), he said.

"These companies are in the processing of looking for suitable land to start their projects in Vidarbha, Marathwada and north Maharashtra regions. The investors do not need any permissions from the government. They buy the land and take approval from banks to finance their projects. The banks will inform the government and interest subsidy of 12.5% and capital subsidy of 10% (announced under the new policy last month) will be released through the banks," he said.

The companies will have to set up their units in a year's time, the minister said. Khan said incentives under the policy like the 12.5% interest subsidy will also be applicable to all textile processing units elsewhere in the state.

The state will give an additional capital subsidy of 9% or Rs 9 crore, whichever is maximum, to each of the 14 textile parks approved by the Centre. The Centre has agreed to provide 40% or Rs 40 crore as capital subsidy to each of these parks, he said.