The apparel unit, with a capacity of three lakh dresses per month, will provide direct employment for about 2,500 people.
The construction work of the proposed unit would be completed within one year and is being set up at an industrial estate in Mancheswar here.
"The state government has been giving stress on textile industries as it generates more employment. The state has been contemplating to set up two integrated textile parks at Choudwar and Bhadrak," said Chief Minister Naveen Patnaik after laying the foundation stone of the unit.
Patnaik also said that the new industrial policy would have provisions to encourage investments in the textiles and handlooms sectors.