AP to set up SPVs for textile parks

The Andhra Pradesh government will soon set up separate special purpose vehicles (SPVs) for the creation of three new apparel and textile parks proposed with a cost of Rs 55.58 crore.

The newly sanctioned apparel manufacturing and export facilities include the Warangal integrated apparel export park, textile park in Pasamailaram, Medak district, Garment City in Maheshwaram in Ranga Reddy district.

The Central government had recently cleared these projects besides asking the AP government to resubmit the proposal regarding Kuppam textile export park with some changes.

Additionally, the state would be appointing private agencies to market space in these parks along with overseas tie-ups.

The need for appointing private agencies for marketing purposes stems from a clause that the central government has inserted which makes it obligatory that 25 per cent of the plots in each park be sold within three months from the date of clearance.

According to G Nageshwar Rao, the commissioner of AP handlooms and textiles, the union textile ministry officials cleared the above projects on Wednesday.

This is for the first time that the constitution of SPVs for apparel and textiles parks have been taken up in the state.

In earlier cases, a managing committee headed by the government secretary has been managing the affairs of these facilities.

Now the central government has issued new guidelines in which SPVs are to be constituted to set up new apparel and textile parks, according to the officials in state handloom and textiles department.

The state government has prepared a long-term plan to achieve a target of Rs 25,000 crore worth of garment exports by 2010, by taking advantage of the removal of the quantitative restrictions from this year.

The estimated cost of about Rs 208 crore for the proposed five apparel export parks and 12 textile parks is to be jointly shared by the state and the central governments.

"Keeping in view the urgency of grounding of these parks and also the Government of India's rider, we are going to appoint private marketing agencies to give wide publicity all over the country to attract manufacturers and traders to come and set up their units at these export parks," Rao informed.

The Warangal export park is proposed to be constructed at a cost of Rs 12.8 crore, of which the centre would provide Rs 3.67 crore as grant. The expected value of the annual exports from this park is estimated to be at Rs 20 crore.

The Pasamilaram textile park is proposed to be set up at a cost of Rs13.36 crore, of which the central government would contribute Rs 11.42 crore.

The park will house about 100 units with an estimated value of Rs 250 crore exports. The Garment City project in Maheshwaram is proposed with a cost of Rs 29.42 out of which Government of India has agreed to provide Rs17 crore grant.