Tamil Nadu - Coimbatore   

Dyeing units: risks do not deter investors

M. Soundariya Preetha

They are confident of a solution to sanitation project

COIMBATORE: It is hard time for processing units at Tirupur. They suffered water scarcity for years. When the essential raw material is set to reach them, 600 dyeing and bleaching units have been shut down owing to environmental problems.

The Madras High Court has ordered closure of units that failed to pay in advance 25 per cent of the cost for setting up reverse osmosis plant.

What could be heartening to them is that the investors and those who have lent for the Rs. 1,023-crore Tirupur Water Supply and Sanitation Project are confident that the industry will find a solution to the problem at the earliest.

The project implemented by the New Tirupur Area Development Corporation Limited, involves a debt of Rs. 600 crores and equity of Rs. 400 crores.

Source in the corporation said 500 processing units in the region signed service agreements for a total supply of 65 million litres of water a day (mld).

It does not include the 100-odd units located in the municipal limits. Though the capacity of the pipeline laid was 250 mld, the initial off-take was expected to be 185 mld.

The investors and lenders were aware of the risks involved in such a massive infrastructure project. Initially there was apprehension over the availability of water at the intake point. It was overcome, but the units faced pollution-related problems now. "The investors and lenders are confident that the industry will find a solution to this problem too," the source said.

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