Chinese textile company Zhejiang Daoqin will invest Rs 600 crores in a textile plant in Uttarakhand. This is likely to help the state’s textile industry take major steps towards growth. This venture will also provide employment to around 8,000 people. Uttarakhand is a suitable business destination for industrialists due to benefits like rebate in per unit electricity bill, exemption from electricity tax, and a 50 per cent rebate in land for setting up a textile industry. The state is expecting more Chinese firms to make investments.
Surplus ground water and proximity to neighboring countries like Nepal and China have attracted industrialists to the textile park. Another advantage is its border with Uttar Pradesh and good transportation facility to other parts of the country.
Zhejiang Daoqin will be the first Chinese company to make 100 per cent foreign direct investment in India. Uttarakhand has launched a mega textile policy under which new projects having an investment above Rs 75 crores will be christened as a mega textile park project. Companies setting up a new unit will be given a 50 per cent rebate on the land price.
The allottee has to pay 20 per cent of the land premium at the time of allotment and the balance payment is to be deposited within seven years in equal installments at the prevailing rate of interest.