The State Government’s endorsement of the new Textile, Apparel, and Garments Policy 2024-29 has instilled optimism among textile companies facing losses at the Guntur Textile Park.
The textile park at Gopalamvaripalem, near Chilakaluripet, was established in 2014 as part of a Central government initiative to boost the sector. Initially planned with 61 units, including weaving, processing, and garment units, the sudden withdrawal of the Central policy led to reduced interest from industrialists. As a result, only nine units are operational, running at 50 per cent capacity with just 400 employees.
The newly approved policy aims to revitalise the textile sector with several incentives, including a 30 per cent investment subsidy, Rs. 2 per unit electricity tariff, a 50 per cent electricity bill subsidy, and six years of sales tax waivers. SC, ST, and BC women entrepreneurs will receive an additional 45 per cent subsidy, while units starting production within 18 months can access an extra 18 per cent subsidy. The guidelines for the 2018-23 Textile Policy also include a 20 per cent investment subsidy, reduced electricity rates, and 10 years of tax relief for existing units.
Guntur Textile Park Managing Director Samineni Koteswara Rao welcomed the new policy but emphasized the urgency of the government clearing pending incentives worth Rs 1,100 crore from the past decade.
Industrialists are hopeful that, if implemented as promised, the incentives will restore the park’s full capacity, attract new investments, and create much-needed employment opportunities for the local community.
