The Centre has sanctioned Rs200 crores for Tirupur’s dyeing industry that was on the verge of closure due to severe financial crisis after making huge investments in the country’s first Zero Liquid Discharge projects for effluents.

Tirupur is a hub of the textile processing and knitting industry providing employment to over five lakh persons and contributes 22 per cent of India’s total garment exports.

On the Textiles Ministry’s recommendation, the Finance Ministry has sanctioned the funds for Tamil Nadu for 18 common effluent treatment plants set up at a cost of Rs1,013 crore. The Rs200 crore assistance is in the form of an interest free loan to be converted into grant, based on the performance of these plants.

“This 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 per cent capacity utilization,” the Textile Ministry said in a statement.

“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,” according to the Ministry.

Source: The Hindu