MAS Holdings to invest $700 m in textile SEZ

ARUN S
DATELINE

NEW DELHI, APR 6 : Sri Lanka-based MAS Holdings would invest $700
million to set up a textile SEZ in the remote Chintavaram village in
Andhra Pradesh.
Sources said the company has already procured 700 acres in the area and
would be applying for the Board of Approval's nod soon. MAS Holdings has
also assured that in the next 18 months they would provide direct
employment to 31,000 people.

Pointing out that India currently uses only 21 out of the 101 tariff
lines in global textile trade, government sources said the entry of
foreign companies like MAS Holdings and Brandix in the apparel segment
is being encouraged to help India get into trading in the other 80
tariff lines.

"The spin-off effect from these textile multinationals setting up shop
here is that more Indians will learn to compete internationally. Many of
them would become entrepreneurs and enter into trading in the 80 tariff
lines where India does not have any presence," an official said.

Another Sri Lankan firm Brandix on Thursday got the clearance from the
empowered Group of Ministers for notification of their 404-hectare
apparel SEZ in Vishakhapatnam.

Brandix has already pumped in $100 million and employed 1,000 people.

However, DK Nair, secretary-general of the Confederation of Indian
Textile Industries, said the government should also help domestic
industries by eliminating or drastically cutting the import duty and
excise duty on man-made fibres and also by putting in place flexible
labour laws besides increasing the availability of power and reducing
its cost.

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