GUNTUR: The State government’s approval of the new Textile, Apparel, and Garments Policy 2024-29 has raised hopes for textile industrialists struggling with losses at the Guntur Textile Park.
Established in 2014 as part of a Central government’s initiative to boost the textile sector, the park at Gopalamvaripalem near Chilakaluripet was initially planned with 61 units, including five weaving processing units, 54 weaving units, and two garment units. However, the abrupt withdrawal of the Central policy discouraged several industrialists, leaving only nine units operational at 50% capacity, with just 400 employees.
The newly approved policy aims to rejuvenate the sector by offering a 30% subsidy on investment, Rs 2 per unit electricity tariff, a 50% subsidy on electricity bills, and sales tax waivers for six years. Additional benefits include a 45% subsidy for SC, ST, and BC women entrepreneurs and an extra 18% subsidy for units starting production within 18 months of registration. Guidelines for the 2018-23 Textile Policy were also released, granting existing units a 20% investment subsidy, reduced electricity costs, and tax relief for a decade.
Speaking to TNIE, Guntur Textile Park managing director Samineni Koteswara Rao welcomed the policy but stressed the need for the government to clear pending incentives worth Rs 1,100 crore from the last decade. He highlighted that the vision behind the policy could only materialise if backlog payments were addressed promptly. Rao also urged the government to set a fixed timeline for subsidy disbursement to enhance the policy’s impact.
Industrialists are optimistic that the incentives, if implemented as promised, will restore the park’s full capacity, attract fresh investments, and provide much-needed employment opportunities for the local population.
