Anantapur textile industry crisis looms due to lack of support from Andhra govt

With small-scale units shutting down, workers facing job losses, and existing businesses struggling to survive, industry leaders are urging the State government for immediate intervention.
Rayadurgam is home to over 600 textile units, employing around 50,000 workers.
Rayadurgam is home to over 600 textile units, employing around 50,000 workers.
Updated on
2 min read

ANANTAPUR : Textile industry in Anantapur district, a vital source of employment, is grappling with severe challenges due to inadequate infrastructure and a lack of government support.  

Rayadurgam and Pamidi, renowned for jeans and nightwear production, are struggling with stagnation, poor facilities, and policy inaction, threatening the livelihoods of countless families. Despite the State government’s policy to boost the textile industry, it remains underdeveloped without basic infrastructure like water supply, transport, and dyeing units. Business owners are hesitant to invest further, citing bureaucratic hurdles and a lack of financial incentives.

With small-scale units shutting down, workers facing job losses, and existing businesses struggling to survive, industry leaders are urging the State government for immediate intervention.

Rayadurgam is home to over 600 textile units, employing around 50,000 workers. However, the sector has struggled to recover from the impact of COVID-19, with nearly 300 small-scale units shutting down. The Udegolam Textile Park, spread across 17.24 acres, was established to support the industry. But only four out of the eight units are operational. Poor infrastructure and distance from Rayadurg have deterred workers from taking up jobs. Entrepreneurs believe that setting up a dyeing unit and effluent treatment plant (ETP) could attract new investments. Pamidi has earned the title of “Second Mumbai” in the sector. With over 200 shops and 10,000 families depending on the business, the industry holds immense potential.

To support this, a Textile Park was proposed in 2004 over 2.74 acres, with an investment of Rs 1.76 crore to build internal roads, a common facility centre, a clinic, drinking water facilities, and a canteen. However, even after two decades, the project remains incomplete.

Land disputes have prevented the registration of plots, making it impossible for entrepreneurs to secure loans and subsidies. The issue remains stuck with the government and the CCLA (Chief Commissioner of Land Administration).  

TH Hanumanthu, President of the Rayadurg Ready-made Garments Association, pointed out that the Apparel Park is occupied by ineligible individuals, including politicians and real estate investors who have no connection to the industry.  

Although the previous YSRCP government offered a 15% subsidy after three years, many businesses hesitated due to the delay. The current administration has increased the subsidy to 40%, attracting renewed interest from entrepreneurs.

However, business owners insist that timely disbursement of subsidies, infrastructure development, and better worker facilities are crucial to strengthening the textile industry.

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