Work at Palladam Hi-Tech Weaving Park in full swing
27 Dec '05
2 min read
Palladam Hi-Tech Weaving Park (PHWP) is promoting Rs 155-crore modern weaving cluster. The cost of the infrastructure project including the buildings is put at Rs55 crore.
Senthil Kumar, Chairman and MD of the PHWP hoped the project would turn out Rs500 crore worth of products per annum and depending on the market, the value addition in the park's output would also go up.
Construction of the factory sheds have just started and machinery orders for the weaving plants would be placed by January 2006 with commercial production expected to start around June/July, next year.
The PHWP infrastructure will include factory sheds, roads, water supply, sewage, effluent treatment, captive power plants, training centers, testing centre, crush for workers wards, workshop and raw material go down.
It will have 750 high productive air jet and projectile looms in four categories of loom sheds, owned by 105 investors.
Small-scale powerloom owners from Palladam area would contribute Rs3 crore, the center will provide Rs20 crore subsidy under the integrated textile park scheme and another Rs5 crore subsidy will be provided by the Tamil Nadu Government.
The balance Rs27 crore will be taken as long-term loan from the financial institutions.
Infrastructure Leasing and Financial Services Ltd (IL&FS) have taken the lead role for arranging long-term loan for the PHWP project through Canara Bank, Bank of India, Central Bank of India and Indian Bank.
IL&FS and SIDBI will extend Rs6 crore each towards long-term loan and the balance will come for other banks. SIDBI and IL&FS have arranged Rs10 crore as bridge loan, to keep the construction activity going, considering the small and medium enterprise character, said R C M Reddy, Chief Executive Officer of IL&FS.
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