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The latest guidelines issued by the Handlooms, Handicrafts, Textiles and Khadi Department for implementation of its Mini Textile Park (MTP) Scheme are a cause for comfort for prospective entrepreneurs, according to Tiruchi District Tiny and Small Scale Industries’ Association.
The department has invited expression of interest from stakeholders for implementing the scheme in an ideal and effective manner.
When the announcement was first made in the Assembly during 2015 under Section 110, financial assistance of ₹ 2.5 crore was promised by the State Government.
During 2019, amendments were made to the terms and conditions of the scheme.
Further, based on the demands from stakeholders, amendments were made to the eligible project components to avail subsidy.
As per the new amendments, industry associations, groups of entrepreneurs and societies can be the main promoters of the Mini Textile Park scheme.
The project cost now covers common infrastructure, buildings for common facilities and factory buildings for production purposes, and plant and machinery. The facilities include testing laboratory, design centre, training centre, trade centre, warehousing facility, raw material depot, creches, canteen, workers hostel, and offices.
Common infrastructure like roads, street lights, compound walls, drainage, water supply, electric supply including captive power plant, effluent treatment plant and telecommunications have also been brought under the eligible project cost.
The proposed MTP must have a minimum of three textile manufacturing units to be set up in a minimum area of two acres.
However, the project cost must not include the cost of the land. Fifty per cent of the project cost or ₹ 2.5 crore, whichever was less, will be provided as grant by the State Government.
The latest amendments have many positives that would prompt prospective entrepreneurs to derive utility of the MTP scheme, TIDITSSIA Secretary S. Gopalakrishnan said.
The Ministry of Textiles has reportedly received 43 applications from prospective entrepreneurs in Karur district for establishing MTP. The Textile Department is in the process of creating awareness on technical textiles to enhance patronage for the scheme.
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