Mon, Feb 27, 2017 | updated 09:57 AM IST

Central Govt. sanctions Rs. 200 crores for Tirupur Dyeing Industry

Updated: Dec 28, 2016 21:21 IST

New Delhi [India], Dec. 28 (ANI): The Centre has sanctioned Rs. 200 crores to the Tirupur Dyeing industry which was on the verge of closure due to severe financial crisis on account of their huge investments in the first ever Zero Liquid Discharge (ZLD) projects in the country.

The Government of India took cognizance of this problem of the dyeing industry in Tirupur and on recommendation of the Ministry of Textiles, Ministry of Finance sanctioned Rs 200 crores to the state government of Tamil Nadu for the 18 Common Effluent Treatment Plant (CETPs) as an interest free loan to be converted into grant based on the performance of the CETPs.

The move will help ailing CETPs and 450 dyeing units to recover from the financial crisis and help them to a complete the project to achieve 100 percent capacity utilization.

More than 450 dyeing units in Tirupur Dyeing Industry had collectively set up 18 ZLD enabled Common Effluent plants with a total cost of Rs 1013.00 cr. The project has become a global standard and appreciated by the environmentalist and processing industry world over.

However being the first project of its kind the project had several technical challenges and cost overrun which put them into financial crisis due to outstanding Bank loans and incomplete projects.

Tirupur is a hub of the textile processing and knitting industry providing employment to over 5 lakh persons and contributes 22 percent of the total garment export of the country.

Closure of processing industry could have hit the entire garmenting sector in the region. (ANI)

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