The centre has decided to launch investment regions for the textile sector to consolidate the phenomenon of agglomeration, visible in textiles to further reduce transaction costs and enhance competitiveness.
In a written reply to a question minister of state for textiles E V K S Elangovan today said in the Lok Sabha that concentrated, contiguous investment and production regions with high quality infrastructure and covering the entire value chain can help obviate, to an extent, the burden imposed by multiple levies, high power costs, bottlenecks in shipment and delays in legal clearances.
Such regions had the potential to become textile hubs with billions of dollars of investment - both domestic and foreign. The investment region is proposed to be developed in a public-private partnership mode to enable leveraging government investments in these regions.
Accordingly, a concept paper, Policy Resolution for Textile Infrastructure Development Fund and Textile Territorial Investment and Production Complex has been drawn up.
No further details have been worked out.