The Hindu : Business : New spinning units coming up

Online edition of India's National Newspaper
Thursday, Jan 20, 2005

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Business

New spinning units coming up

By M. Soundariya Preetha

COIMBATORE, JAN. 19. Driving along the Palladam-Dharapuram road what catches the eye are the windmills and the textile mills that are coming up. Apart from the ones already in operation, structures for at least four more spinning units are rising in this part of Coimbatore region.

Coimbatore has about 60 mills in operation in the organised sector and "during this financial year nearly four lakh spindles are likely to be installed in Coimbatore District," says Vijay Venkataswami, Chairman of the Southern India Mills' Association (SIMA).

According to him, after the phasing out of the quotas, more international buyers are looking at sourcing finished textile products from India and hence the yarn demand is also expected to go up.

Further, the relaxations in the Technology Upgradation Fund Scheme (TUFS) and the hi-tech weaving parks that are on the anvil have given confidence to the sector.

He added that apart from the new spindles coming up, the "old and progressive" mills in the district were also modernising and moving up the value-chain.

"This is a welcome sign and another four lakh spindles are expected to be installed in the district in the next 18 months." These would also generate a lot of employment opportunities.

Mr. Venkataswami said that the association had conducted a seminar in Hyderabad recently underscoring the need for moving up the value-chain and planned to organise more such programmes.

The SIMA had also initiated a proposal to establish a modern processing park in the State and the "State Government clearance is awaited," he added.

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