By Raman Reddy
How long can Tamil Nadu remain complacent and rest on its past glory? On the other hand, Andhra Pradesh, after creating a good base for IT industry, is now aggressively wooing investors to textile sector. One look at the ‘Doing Business With AP’ segment of the Andhra Pradesh government’s website is enough to understand the pro-activeness of the state and the rapid strides it is making in manufacturing sector.

The state has created additional power capacity of 2080 MW during the past three years, highest in the country. It produces 2.6 million bales of cotton annually, the second largest producer of cotton in the country. The contribution of manufacturing sector to total gross domestic product (GDP) in 2005-06 is 27968 crore, up from Rs 18933 crore in 2001-02.

The Apparel Export Park at Gundlapochampally in Ranga Reddy district is the flagship of the industry in India. Spread out in 176 acres, many of the units such as Chermas Pokarna have all started exporting to US and Europe. The second phase of the expansion is underway. It has uninterrupted power supply, roads, drinking water, drainage and effluent discharge-sewage systems. The units in the park are providing employment to 6,000 people in 15 units.

Another park at Gajuwka in Vishakapatnam in 146 acres is envisaged to facilitate the growth of powerlooms by accessing the funds from Technology Upgradation Fund (TUF) of the Central government and 25 per cent subsidy for construction of powerloom worksheds. Among other projects is a textile park at Karimnagar district in 60 acres of land, 130 km from Hyderabad. Handloom Apparel Park at Pochampally, textile park at Medak and Anantpur district, High Tech park at Kothur in Mahamood Nagar district are being implemented.

The jumbo project of all is the Apparel City at Vishakapatnam being set up by Barndix Ltd in 1000 acres to employ 60,000 persons. The textile industry of AP contributes 9-10 per cent of GDP. The state registered a growth of 3.3 per cent in 2005-06. Good cotton crop, availability of cheap labour, uninterrupted power supply, lower power rates, various subsidies, including training of workers, are all attracting many entrepreneurs to the state.

Even the South Indian Mills Association (SIMA) headquartered in Tamil Nadu is setting up a textile park at Naidupet. The state expects additional investment to the tune of Rs 45,000 crore in spinning in the next three years and targets exports worth $5 billion in 2012. As K S Sundararaman, executive director of Bannari Amman Spinning Mills, said: “If AP Government succeeds in giving the facilities they are promising, they would be a serious threat to TN.” Perhaps, time for Tamil Nadu government to put its act together to retain its glory in textiles.