AP Govt may pay power subsidy to textile units

Hyderabad: The Andhra Pradesh Government is likely to reimburse the subsidy portion of the power charges already paid by the textile units.

This follows a decision by the Chief Minister, Dr Y.S. Rajasekhara Reddy, here today after a review meeting convened to expedite some of the pending projects and assess their progress.

According to a statement from the Chief Minister's Office, Dr Reddy directed the Department of Industries and the Andhra Pradesh Industrial Infrastructure Corporation Ltd to expedite clearances and ensure that the projects go on stream as per schedule.

He felt that the textile industry, which has the capability to provide significant number of jobs, needed special attention.

During the review of textile units in the mini textile park at Nacharam, the Chief Minister and other department officials took stock of the progress made by Gokuldas Exports Ltd, Shahi Exports and Orient Craft Ltd.

TEXPORT PROJECT


Approval of building plans for Texport Syndicate (India) Ltd by APIIC has been obtained and construction of the factory premises is at an advanced stage and poised for completion next month. Commercial production is likely by August 2007.

The Chief Minister reviewed the works related to South India Mills Association (SIMA) Textile Park at Naidupeta. APIIC has taken possession of 994 acres of land in April, spread over three villages, out of which 485 acres are earmarked for the textile park.

NEW COMPANY


A special purpose vehicle, SIMA Textile Park Company Ltd (Satex), has been formed. The company has paid Rs 3 crore at Rs 2 lakh an acre for 150 acres for Thigarajar Mills and SP Apparel Ltd. Loyal Textiles and Shree Rajasthan Polycot will shortly pay up.

The State Government is making necessary arrangements for supply of water and tenders have been placed by the Roads and Buildings Department for improving the approach road from National Highway 5 for the Rs 11.62-crore project.