Saturday, April 17, 2010

StateRs 40-crore viagra for apparel clusters..news in bangalore mirror

StateRs 40-crore viagra for apparel clusters


The allocation could help small units survive and compete better


Posted On Friday, February 20, 2009 at 11:35:09 PM


With the government providing a budgetary boost to readymade apparel clusters in the state, the readymade sector is set to see more competition and correspondingly more choices for the end-buyer.

A total of Rs 40 crore has been sanctioned to provide basic facilities in each cluster. There are more than 1,500 garment
production centres in and around Bangalore, employing more than 5 lakh people.

According to garment industry sources, this would result in more employment and greater collective efficiency. “After agriculture, the garment industry absorbs the maximum number of people, especially women. So the funding is laudable,” said Sajjan Raj Mehta, president, Karnataka Hosiery and Garment Association.

Centre happy
The ministry of micro, small and medium enterprises (MSME) too is happy with the state government’s decision. “After the global meltdown, the cluster programme is crucial to the garment industry. I thank the government for supporting us. Apart from this, our own schemes will contribute to the growth of the industry,” said Gopinath Rao, Assistant Director, MSME, Government of India.

But all were not happy. “The government has said it will provide 20 per cent equity capital under the ‘Karnataka Suvarna Vastra Neethi’. But this is only for firms located outside Bangalore. It should be available to firms in and around Bangalore too,” said Pandu Ranga, committee member, Clothing Manufacturers Association India. BMB

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