In Andhra Pradesh’s Guntur, the Guntur Textile Park is now losing its charm as the overall industry scenario is not in the favour of textile players and the State Governments’ policies are not as per industry expectations. There are reports that the sluggish business at Guntur Textile Park has put textile industrialists in a dire condition.
This park was setup up in 2014 in Palnadu district as part of the Government’s initiative to boost the textile industry and once it had almost 61 units, including five weaving processing units, 54 weaving units, and two apparel manufacturing facilities. The park was initially started with six partners and over 80 members as promoters. However, the park faced setbacks when the Government withdrew its policy shortly after its establishment.
The Central Government announced a capital subsidy of 30 percent to encourage the growth of the park.
Currently, there are only nine units operational and they are also running at 50 percent capacity. Higher cost of production is also among the main reasons that the park is not running successfully.
Samineni Koteswara, MD of the park said that while the increased prices are similar across the country, Andhra Pradesh is not offering incentives in electricity and marketing as they are provided in other states including Maharashtra and Gujarat.
As several promoters dropped out from the project, the pre-operative expenses which increased in the last few years became a heavy burden.
In Andhra Pradesh’s Guntur, the Guntur Textile Park is now losing its charm as the overall industry scenario is not in the favour of textile players and the State Governments’ policies are not as per industry expectations. There are reports that the sluggish business at Guntur Textile Park has put textile industrialists in a dire condition.
