To implement the ambitious textile park scheme converting 25 exisiting apparel parks into special economic zones (SEZ), the Government has signed a memorandum of agreement (MOA) with Infrastructure Leasing and Financial Services Limited (IL&FS) as the project management consultant (PMC).
The conversion will call for respective state governments to relax their labour laws and encourage private developers interested in developing SEZs.
Union Textiles Minister Shankersinh Vaghela remained present at the signing ceremony, last week.
Vaghela said, “These apparel parks may be converted into SEZs if the state governments relax labour laws in their respective states and if the developers want it."
Said scheme will attract fresh investment to the tune of Rs 7,500 crore and boost textiles output by added about Rs 20,000 crore per year.
“Assistance from the ministry would be available to the tune of 40 percent of the cost of the project, not exceeding Rs 40 crore and the Special Purpose Vehical (SPV) will have to mobilise the remaining funds including land. The ministry has earmarked an amount of Rs 625 crore for this purpose for the financial year 2005-06 and 2006-07,” the Minister added.
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