The proposed park will come up on 150 acres to be allotted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). It will have four integrated mills that will churn out fine yarn, textiles and fabric among others to support the manufacture of diversified jute products by 90 small and medium enterprises that are expected to set up shop in the park, BV Rama Rao, vice-chairman and managing director of APJDC and managing director of Srikakulam-based Swarnandhra Jute Mills Private Limited, told mediapersons here on Tuesday.
The Vizag jute park will be one of the six to be established in the country as part of the Union Textiles Ministry's decision to promote diversified jute products. Work on the park will take off in February 2009 and will completed in two years from then.
Rao said the textiles ministry had agreed to provide a grant of Rs 40 crore for the development of infrastructure facilities at the park, while the Andhra Pradesh government will supply power at a subsidised rate of 70 paise per unit, reimbursement of stamp duty on land registration and hypothecation of deeds besides extending a three per cent rebate in interest on loans.
"The remaining Rs 60 crore will be mopped up through various state government agencies and anchor partners," Rao said, adding the park is expected to attract investments of Rs 500 crore and has the potential to create direct and indirect employment for around 20,000 people.
At present, Andhra Pradesh accounts for 200,000 acre of crop under mestha (jute used for making gunny sacks and twine) primarily in the two districts of Srikakulam and Vizianagaram. The proposed park will also encourage the cultivation of mestha on a large scale, Rao said.
