The Hindu : Two apparel parks for TN

Online edition of India's National Newspaper
Friday, Nov 15, 2002

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Business

Two apparel parks for TN

By Our Special Correspondent

NEW DELHI NOV. 14. The Centre has given its clearance for the setting of two more apparel parks in the country. Both the new parks would be located in Tamil Nadu — Tirupur and Irrugontakottai-Kancheepuram.

This is the first time such parks are being sanctioned for Tamil Nadu since the apparel park scheme was formally launched in March this year. The earlier approvals were for parks in Vishakapatnam, Thiruvananthapuram, Bangalore, Kanpur, Ludhiana, Surat and Tronica city in Ghaziabad.

Announcing the new approvals, the Minister of State for Textiles, Basangouda R. Patil, said the Centre was also considering modifications in the features of the Textile Infrastructure Scheme to make it more attractive.

The changes are expected to be primarily with regards to the funding pattern for the scheme. Under the present arrangement, the Centre and the States are required to share the expenditures equally. Citing their poor financial situation, the States have been urging that Centre should bear the entire costs, and consequently their response to the scheme had been lukewarm so far.

According to highly placed sources, the Union Textiles Ministry was working on a new formula that would go at least some way in meeting the States' demands, if not fully. They also indicated that another apparel park might be sanctioned for Kolkatta soon.

Addressing a meeting of the Parliamentary Consultative Committee attached to his Ministry in the absence of his senior colleague, Kashiram Rana, who is away in Gujarat in connection with the preparations for the December 12 State Assembly elections, Mr. Patil informed that textile exports were gradually picking up, while the imports were dropping.

Citing latest available data from the Directorate General of Commercial Intelligence and Statistics, he said exports during April to July this year had amounted to $3,846 million, a 6.7 per cent growth compared to the figures for the period last year.

Admitting that this performance by itself may not be adequate to meet the target of $15,005 set for the whole year, he said the situation was expected to improve further in the coming months. Trade representatives percieve a brighter outlook and have expressed confidence of not only fulfilling, but even surpassing the target.

As regards imports, according to the data, there had been a 9 per cent decline for the period, with the decrease more pronounced in the higher value added products. While readymade garment imports registered a drop of 48.5 per cent, made-ups recorded a decline of 17.9 per cent.

There was some increase in some segments, but they were concentrated in the raw material sector and represent not even one percent of the domestic production of textiles in the country.

"Our Ministry is keeping a constant watch on the import situation and would strive to ensure that the imports do not cause any material or serious injury to the domestic industry,'' he added.

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