Madura Fashion & Lifestyle (MFL) has proposed to set up a garment manufacturing unit in Orissa. The company has sought 6-8 acres land in Mancheswar industrial area in the city along with other incentives. The total investment, in three phases, is estimated to be Rs. 75 crore and total production capacity of 4.2 million pieces per annum. Expected to generate a total employment of 4,600 across all three phases, the company will create 11 ancillary units (three washing units, three goods packaging units and five embroidery units). Madura has sought allotment of land at concessional rates, capital subsidy of 25 per cent on total investments made on the plant and an interest subsidy of five per cent on the overall investment.
Other incentives sought by the company include full waiver on VAT (value added tax) and central sales tax (CST) for eight years from the date of commencement of operation and full reimbursement on entry tax on plant and machinery and capital goods and raw material inputs for production of finished goods. The first phase of the investment will see MFL pumping Rs. 40 crore for a production capacity of 2 million pieces. The company expects to generate sales of Rs. 250 crore in the first phase.
