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Odisha Targets Rs 10,000 Crore Investment In Textile Sector

Updated: Mar 19, 2024 04:39:01pm

Odisha Targets ?10,000 Crore Investment In Textile Sector

Bhubaneshwar, Mar 19 (KNN) Odisha is setting its sights high, with plans to attract Rs 10,000 crore in investment for its textiles sector over the next five years. 

This ambitious move is poised to not only boost the state's economy but also create over 100,000 job opportunities, signaling a significant leap in its industrial landscape.

Bhupendra Singh Poonia, managing director of Industrial Promotion & Investment Corporation of Odisha (IPICOL), highlighted the state government's commitment to this endeavor, reported mint. 

Under the revised Industrial Policy Regulation (IPR), investors in the textiles sector can benefit from a 30 per cent reimbursement facility, disbursed in five annual installments, amounting to 6 per cent reimbursement annually post-commencement of commercial production.

This strategic initiative, embedded within the technology-focused IPR introduced in December 2022, aims to diversify investments across various textiles categories, encompassing both synthetic and natural fibres, including apparel and technical textiles.

Poonia emphasised Odisha's transition from a modest presence in textiles exports to a hub attracting substantial investment from both national and international players. 

Notable companies like Shahi, Aditya Birla, White Lotus, and Welspun Living have pledged investments ranging from Rs 50 crore to Rs 4,000 crore, showcasing confidence in the state's potential.

Incentives such as a Rs 2 per unit electricity cost reimbursement for a decade, covering Employees' State Insurance Corporation (ESIC) and EPFO (Employees Provident Fund Organisation) contributions for Odia workers, and constructing hostels for women workers further bolster Odisha's attractiveness for investors.

The timing couldn't be better, considering the booming Indian market for technical textiles, projected to reach Rs 1.81 trillion in FY24. 

Despite a slight dip in textiles exports, India remains a global leader in cotton and jute production, poised to capitalise on its 4 per cent share of the global textiles and apparel trade.

(KNN Bureau)


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