Data collated from the Handlooms, Handicrafts, Textiles and Khadi sector in the State show that only 11.68% of the investments pledged during the Global Investors Meet (GIM) in 2015 have materialised till date.
As on September 19, 2018, the department concerned had managed to bring in investments worth ₹228.39 crore, creating over 1500 jobs. Industry sources said that procuring land for some projects was a tedious task, and that obtaining clearances from certain departments was a ‘nightmare’.
During the first edition of GIM, the Handlooms Department had signed 10 MoUs, entailing investments worth ₹1,954.83 crore with a potential to provide job opportunities to over 65,000 people.
No record of deal
Enquiries revealed that of the 10 MoUs signed, one firm, called Fashion Knits (a garment manufacturer), which had pledged to invest ₹100 crore, was now unwilling to pursue the project. Also, the department did not have any information on its records for a MoU signed by Estee Exports, entailing investments worth ₹192 crore.
On the other hand, two companies – Poppy’s Knitwear Private Limited and SRG Apparels Private Limited (expansion of existing plant) — had completed construction work. Poppy’s Knitwear had even started manufacturing operations.
Southern District Textile Processing Cluster (P) Ltd., which had agreed to invest ₹151 crore in Kariyapatti Taluk (Virudhunagar), had procured 102 acres of land, but construction work was yet to begin.
The firm was yet to get approvals from the Directorate of Town and Country Planning and the Tamil Nadu Pollution Control Board. In the case of SIMA Textile Processing Centre Ltd., the construction work was yet to begin as the firm’s request for water supply was pending with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The firm had been allotted 247 acres by SIPCOT.
Projects still under way
Perarignar Anna Handloom Silk Park had commenced construction work on the 75-acre land it had procured in Kilkathirpur village (Kancheepuram). In the case of Arni Handloom Silk Park, which inked a deal for ₹94 crore, procurement of land was under way.
Two other firms – Sri Mahasakthi Pvt. Ltd. and SIPCOT SIMA — were yet to obtain land for their projects. In the case of the former, land was yet to be allotted, while for the latter, land had not been procured and, as per the EIA notification of 2006, environmental clearance had to be obtained from The Ministry of Environment & Forests (MoEF), New Delhi.
Last week, The Hindu looked at the investments pledged in the IT sector during GIM 2015 and found that only 29.30% of the promised investments had materialised three years on.