Textile to invest Rs1.4 lakh cr for expansion by 2010
01 May '06
1 min read
Leading textile companies including Reliance Synthetics, Indo Rama Synthetics, Nahar Industrial Enterprises and LNJ Bhilwara Group's Rajasthan Spinning & Weaving Mills have reported excellent returns for 2005-06 with plans for further consolidation.
Textile industry plans to take advantage of new fiscal regime. It projects investments of Rs1.4 lakh crore up to 2010 for modernisation and expansion plans, with an allocation of about Rs70,000 crore for installation of machineries.
This will help sector to double its share in world textile trade from existing 4 percent to 8 by 2008, according to data from Textile Ministry.
Companies are now going in for expansion, improving of customer relations and remaining abreast of new fashion trends in other countries, according to a senior official of the Ministry.
New fiscal regime favours organised players and consolidation has already commenced, he said.
New world order will bring in stronger competition and Indian industry's decision for upgrading technology is a step in right direction, Textile Commissioner JN Singh said.
Under Technology Upgradation Fund Scheme, investments of around Rs30,000 crore were expected in the sector by end of current fiscal, Singh said.
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