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By Our Special Correspondent
NEW DELHI, MARCH 26. Five apparel parks are soon to be set up at Bangalore, Visakhapatnam, Thiruvananthapuram, Surat, and Tronica city near Ghaziabad under the `apparel park for exports' scheme cleared by the Cabinet Committee on Economic Affairs at its meeting here on Saturday. The Union Textile Minister, Kashiram Rana, said today that a large number of proposals have been received by the Ministry from several States in anticipation of the clearance for the scheme. But, of them, only five have been found to be complete in all aspects. They would now be considered by the Project Approval Committee to be set up under the scheme and they would be approved soon. The other proposals, he said, would also be considered in due course as and when the States submit details that were required to make them complete. The centres for which proposals have been submitted, but where the details were incomplete are: Chennai, Tirupur, Bellary, Ahmedabad, Ludhiana, Indore, Jabalpur, Kolkatta, Howrah, Kuppam and Agnampudi in Andhra Pradesh, and Gannaure in Haryana. Though, to begin with, Rs. 80 crores has been allocated for the scheme, the Finance Minister, Yashwant Sinha, has promised that more funds would be made available, if needed, Mr. Rana said. Under the scheme, the Centre would provide up to 75 per cent of the capital expenditure on the setting up of the parks, subject to a maximum of Rs. 10 crores, plus a sum of Rs. 5 crores for establishment of effluent treatment plants, creches, multipurpose halls and other such facilities. In addition, the Centre would bear up to 50 per cent of the cost of any training facility created in the parks, up to a maximum of Rs. 2 crores. The aim of the scheme, Mr. Rana said, was to provide a single stop international class market for overseas buyers and thus boost investments in the textile sector and also help in developing domestic brands that could withstand the pressures of import. One of the conditions stipulated under the scheme was that each park should have more than 100 units and that each unit should have not less than 200 machines. Earlier, the Planning Commission had suggested that each unit should have at least 400 machines. This norm was later diluted to ensure that more entrepreneurs could benefit from the scheme. Mr. Rana said while promotion of exports was the primary objective of the scheme, apparel units in the parks would be allowed to sell in the domestic market too. Private parties could also be involved in the setting up of the parks if the States wanted, he added. Asked about the impact of the recent riots in Gujarat on the textile industry in the State, Mr. Rana said there had been some adverse effects but not much as Surat where most of the powerlooms were situated. He declined to comment on the extent of damage, saying that it would be difficult to make an estimate. The situation in the State was returning to normalcy and everything would be fine soon, he added.
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