7 textiles parks to be set up under sitp in gujarat these parks to attract an investment of rs. 3,035 crore and generate employment for 98, 000 workers.

Shri Shankersinh Vaghela, Union Minister of Textiles said that the biggest achievement of the UPA Government was to turnaround the Indian Textiles from Sunset to Sunrise sector. He said this while addressing a press conference at Ahmedabad.

He said that the rationalization of fiscal duties undertaken during the last three years has also provided a level playing field in all segments of the industry, resulting in the holistic growth of the industry.The Minister said that the textiles sector has witnessed a spurt in investment during the last four years and the investments between 2004-08 were Rs. 1,04,506 crore and they are expected to touch Rs. 1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs by 2012.

The Minister said that the cotton is the main stay of our textiles industry. With the launching of Technology Mission on Cotton in 2000 and introduction Bt Cotton seed in 2002 and due to the focused support provided by the Government in recent past, the cotton situation has radically improved.

Our production has reach a level of 31.15 million bales in the cottons season 2007-08, and it is estimated that it will reach a record level of 32.20 million bales. The quality of Indian cotton has improved significantly and our yield will reach 591 kg. per hectare this cotton season.

We are the second largest producer, exporter and consumer of cotton. The competitiveness of our cotton is also reflected in the share of cotton in fibre consumption, which is 60% of total fibre consumption. The share of cotton in the textiles and clothing exports is more than 75%, he added.

Shri Vaghela said that the Government is operating the Minimum Support Price (MSP) Scheme through the Cotton Corporation of India Ltd. (CCI) to ensure a minimum return to the farmer. To stabilize the long term cotton production in the country and to help the farmers, while balancing the interests of textiles industry, the MSP for cotton season of 2008-09 has been substantial raised, said Vaghela.

The MSP of medium staple cotton of length group 24.5 mm to 25.5 mm, has been raised by 39% to Rs. 2,500 per quintal, compared Rs. 1,750 to 1,800 per quintal in 2007-08. The MSP for long staple variety of length group 29.5 mm to 30.5 mm has been raised to Rs. 3,000 per quintal in the cotton season of 2008-09 from Rs. 2,250 per quintal in the cotton season of 2007-08.

Shri Vaghela informed that the higher export of raw cotton had an impact on the cotton prices which shot up to historic highs in the current cotton season. Since October-end 2007 till July 2008, the cotton prices had been higher by around 20% to 40% compared to last year.

The opening cotton prices during the fiscal 2007-08 had been higher by around 4% to 17% as compared to previous year. This was affecting the viability of textiles mills, and on the persistent demand of the Industry the Government abolished import duty of 14.7%, and drawback benefits on raw cotton w.e.f. July 8, 2008. This has helped to stabilize the prices.

Minister said that Indian textiles and clothing exports were US$ 21.46 billion in 2007-08, registering a growth of 12.10% in dollar terms, he added. It is expected that in 2008-09 the textiles and clothing exports will be at least 15% more than what were achieved in 2007-08.

The textiles and clothing exports have diversified into new markets like GCC, Africa, Latin America, Russia and Oceania, and the buoyancy is reflected in the growth of 22.97% and 24.14% in dollar and rupee terms by textiles and clothing export in April-May 2008 {US $ 3.17 billion (Rs. 15,296 crore)}, compared to April-May 2007.

Shri Shankersinh Vaghela said that garmenting is an important segment of Indian Textiles Industry which employs around 5 million workers and has a great employment potential. The Apparel Training and Designs Centre (ATDC) is being opened at Godhra to provide training to both male and female apprentices to make them employable in the Apparel Industry. This measure will help in boosting the employability of local youth, said Vaghela

Shri Vaghela informed that the UPA Government gave a renewed impetus to the implementation of the Technology Upgradation Fund Scheme (TUFS) and on the persistant demand of the Industry, it has been extended upto March 31, 2012.

During its initial years, the progress of the scheme was moderate and it gained momentum from 2004-05 onwards. From its inception till March 31, 2008, 18,773 applications have been sanctioned at an estimated project cost of Rs. 1,22,087 crore. During 2007-08, Rs. 43,700 crore was disbursed, registering a growth of 16.46% on year to year basis.

Shri Vaghela said 40 parks are being set up under the Scheme for Integrated Textile Parks (SITP) which will attract an investment of Rs. 21,502 crore, create employment both direct and indirect for 9.08 lakh workers and produce goods worth Rs. 38,115 crore annually.

Seven parks are being set up in Gujarat at Surat (5), Kutch (1) and Kheda (1). These parks will attract an investment of Rs. 3,035 crore, generate employment both direct and indirect for 98 thousand workers and produce goods worth Rs. 6,597 crore annually.

The Minister informed that as a part of a social welfare measure, UPA Government restructured and initiated Schemes to provide insurance coverage, including cashless OPD facilities, to handloom weavers, handicraft artisans and their families.

Source: Press Information Bureau