HomeIn The FrameAP woos investments of Rs 10k crs in Textiles

AP woos investments of Rs 10k crs in Textiles

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New textiles policy to focus on value addition

The state government of Andhra Pradesh recently approved the new Textile, Apparel and Garments Policy (4.0) 2024-29 which aims to attract new investment into the state to the tune of INR 10,000 Crores in the sector.

In addition, it looks to generate more than 2 Lakh direct and indirect employments, increase textiles export from the state to USD 1 Bn while make AP an End-to-end textile processing & manufacturing state.

The Chandrababu Naidu led government also envisions to attract investments focused on weaving, knitting, processing, garmenting, apparel making, integrated units, and technical textiles etc., with special emphasis on value addition, employment generation and environment protection.

“The main focus of the textile policy is to promote value-added activities in textiles such as weaving, processing, garmenting, and technical textiles to complete the value chain in Andhra Pradesh” said Ms K Sunitha, IAS, principal secretary, Handlooms & Textiles, GoAP speaking to Vizag Industrial Scan.

Andhra Pradesh is blessed with abundant raw material and is the 6th largest cotton-producing state in India, with a production of 15.41 lakh bales in 2022-23, offering substantial opportunities for value addition within the state.

As per latest estimates, there are around 106 spinning mills with approximately 3 lakh spindles and 12,635 power loom units in operation.

Currently the Government of Andhra Pradesh has established 7 dedicated textile parks and there are about 5 private textile parks. “At the outset AP’s new textile policy is encouraging and aims to put AP on the global textile manufacturing map.

It does a great job in offering a slew of benefits to new players & investors. Simultaneously, the emphasis given on technical textiles is also well appreciated” said Mr Suchira Surendranath Director- Strategy & Investments, Adhistan (earlier known as Brandix India apparel city) one of the biggest success stories in the textile sectors in the country.

Additionally, the Government of Andhra Pradesh is keen on further developing the Venkatagiri Textile Park and Chirala Handloom & Textile Park and supporting upcoming private industrial parks as well.

Sectoral Challenges

In spite of the above advantages the weaving, processing, and garmenting segments are underdeveloped in the state. This as per the government has resulted in significant exports of yarn and grey fabric, causing value migration from the state to other regions.

“Despite state’s strong base in cotton production and spinning mills has not translated into robust value addition, leading to significant value migration out of the state. With this new policy we look to address this” said Ms Sunitha.

Furthermore, the apparel and garmenting units in Andhra Pradesh are compelled to import processed and finished fabric, leading to higher raw material costs due to logistical expenses, productivity losses from delays, and other associated challenges.

“To ensure the conversion of the entire yarn produced in the state into fabric and prevent value migration, a focused approach is needed.

The state also aims to create large-scale employment, with the least amount of ecological and carbon footprint” said the principal secretary.

Experts have also urged the state to focus more on skill training and developing manpower i.e. job ready.

AP’s new textile policy is a welcome step towards boosting this sector. However, it is time that we move away from the typical sops and focus on creating infrastructure & training the workforce.

There needs to be a cluster-based approach wherein manpower is mobilised and made available for companies. Training of workers should be taken up on a war footing basis.

This will be a big differentiator for companies” opined Mr Prashant Agrawal, Joint managing director at Wazir advisors.

Financial Incentives

The policy however does offer a slew of financial incentives and upgradation subsidies for both big and small companies to come set up units in the state.

“Strategic, high-value projects with investments greater than Rs. 200 crores will receive customized support, ensuring flexibility and maximizing their potential impact on the state’s textile sector” said Ms Sunitha.

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