Central Govt sanctions Rs 200 crores for Tirupur Dyeing Industry

New Delhi, Dec 29 (KNN) The Government of India has sanctioned  Rs 200.00 Crores  to the Tirupur Dyeing industry  which was on the verge of closure due to severe financial crisis on account of their huge investments in  the first ever Zero Liquid Discharge (ZLD) projects in the country, according to an official release.

The Government of India has taken cognizance of this problem of the dyeing industry in Tirupur and on recommendation of the Ministry of Textiles; Ministry of Finance has sanctioned Rs 200.00 Crores to the State Government of Tamil Nadu for the 18 CETPs as an interest free loan to be converted into grant based on the performance of the CETPs.

The move will  help ailing CETPs and 450 dyeing units  to  recover  from the  financial crisis  and  help them to a complete the  project  to achieve 100%  capacity utilization.

More than 450 dyeing units in Tirupur Dyeing Industry had collectively set up 18 ZLD enabled Common Effluent plants (CETPs) with a total cost of Rs 1013.00 cr. The project has become a global standard and appreciated by the environmentalist and processing industry world over. However being the first project of its kind the project had several technical challenges and cost overrun which put them into financial crisis due to outstanding Bank loans and incomplete projects.

Tirupur is a hub of the textile processing and knitting industry providing employment to over 5 lakh persons and contributes 22% of the total garment export of the country. Closure of processing industry could have hit the entire garmenting sector in the region. (PIB Inputs)