GUNTUR: The sluggish business at Guntur Textile Park has put textile industrialists in a dire condition. The lack of government support has hindered the park’s growth and its ability to provide employment opportunities as initially envisioned.
Explaining the reasons for the slow business at the park, Guntur Textile Park managing director Samineni Koteswara told TNIE that various reasons like the soaring cotton prices, increase in bank interest rate, high transportation cost, shortage of power and labour, and the lack of proper policy and its execution in Andhra Pradesh have plunged the textile industry into the worst crisis.
“While the increased prices are similar across the country, incentives in electricity and marketing are provided in other States including Maharashtra, and Gujarat. As a result, their production cost is much lower and the buyers are favouring doing business there,” Samineni observed.
Additionally, with several promoters dropping out from the project, the pre-operative expenses which increased in the last few years became a heavy burden.
The textile industrialists are urging the State government to implement the policy and provide subsidies on electricity costs so that the textile park would function at full capacity which would boost the textile industry, and provide employment to local people.
Guntur Textile Park in Palnadu district was established in 2014 as part of the government’s initiative to boost the textile industry. The park was set up at Gopalamvaripalem near Chilakaluripet in the erstwhile Guntur district, with the support of local industrialists who invested in 61 units including five weaving processing units, 54 weaving units, and two garment units.
The central government announced a capital subsidy of 30% to encourage the growth of the park. 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.
This led to financial difficulties for the project, causing many partners and promoters to drop out. Currently, only nine units are operational, running at 50% capacity, and employing around 400 people.