The Hindu : Business : Powerloom Parks seek seed capital

Online edition of India's National Newspaper
Friday, May 20, 2005

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Powerloom Parks seek seed capital

M. Soundariya Preetha

Works delayed for want of funds Subsidy amount should be released upfront.

COIMBATORE: The Hi-Tech Weaving Park promoters in the State have sought advance financial aid to commence infrastructure works of these projects.

Banks and financial institutions have evinced interest in the project. Though the promoters are holding talks with them, the participants of the parks have sought seed capital from the State and Central governments to start building the basic infrastructure.

In the Palladam Hi-Tech Weaving Park, for instance, of the total project cost of Rs. 39 crores (for land, worksheds, basic infrastructure and commercial facilities), the Centre's subsidy is Rs. 21.68 crores and the State government's Rs. 5.50 crores.

The beneficiaries will contribute Rs. 3.50 crores and Rs. 8.50 crores will be obtained as loan from banks and financial institutions, says its Chairman and Managing Director, M. Senthil Kumar.

The subsidy for the components under the Group Workshed Scheme and the Textile Centre Infrastructure Development

Scheme is back-ended. Funds are needed to start the building works at the earliest. Hence, the subsidy amount should be released upfront or the State and Central governments should provide seed capital for the projects, he said.

"If we obtain it we can start the work."

At a meeting held here on Wednesday by the Powerloom Development and Export Promotion Council and the Regional Office of the Textile Commissioner, to discuss the progress of the projects, the participants also sought a `comfort letter' from the Union Ministry of Textiles to be submitted to the banks for loan.

Mr. Senthil Kumar said that though other works with regard to the park had already commenced need for initial fund was the main hitch now.

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