Telangana seeks financial help to textile sector in 2021-22 Budget

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The Telangana government asked the Centre to allocate funds in the Budget for 2021-22 for various textile projects in the State. It seeks immediate sanction of ₹300 crore for the Kakatiya Mega Textile Park (KMTP) in Warangal to take up infrastructure works.

“The KMTP is being developed at a total estimated project cost of ₹1,552 crore. Of this, ₹1,094 crore will be spent on infrastructure works. The Mega Textile project is eligible for a capital support of ₹500 crore from the Centre. We request you to release ₹300 crore immediately,” Telangana Minister for IT and Industries KT Rama Rao has said.

In a letter to Union Minister for Women Child Development and Textiles Smriti Irani on Thursday, he requested the Centre to consider sanction of funds for the power loom cluster at Sircilla under the Comprehensive Powerloom Cluster Development Scheme (CPCDS).

The scheme was aimed at promoting clusters that have a concentration of about 5,000 decentralised power looms or more by providing financial assistance to develop infrastructure and technology upgradation.

“Out of the 35,588 power looms in Telangana, about 25,500 are located in Sircilla district. We request you to sanction ₹50 crore under the Central scheme,” he said.

In the letter, the Minister also requested for sanctioning of the Indian Institute of Handloom Technology (IIHT) in Telangana. “Students in Telangana are being forced to go to the neighbouring States of Andhra Pradesh, Odisha, Tamil Nadu and Karnataka, seeking admissions to IIHTs,” he said.

Stating that large textile players are looking at de-risking their supply chains and reducing dependence on major suppliers like China, he said the country stood a great chance in tapping the new demand.

In order to cash-in on the situation and tap opportunities in exports, the country should protect the livelihoods, create new jobs and provide financial help to the textile sector units.

“We can consider providing a support of up to 5 per cent of wages for up to six months. This can be offered in the form of long-term loans,” he said.

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