The Tamil Nadu government has issued an order on providing subsidy of Rs 2.5 crore to set up mini textile parks in Karur. The government would either bear 50 per cent of the cost for building basic infrastructure in the park such as laying of roads, setting up of sewage treatment plant and captive power plant, training centre or offer subsidy to the maximum of Rs 2.5 crore to the manufacturers.

The government aims to motivate apparel manufacturers to set up new units in the state, thereby increasing job opportunities in various process of textile making including spinning, weaving and marketing. These manufacturers will launch a Special Purpose Vehicle for these parks which will set up on 2 acre each. They will get a subsidy of maximum Rs 2.5 crore per park.

These mini textile parks would enable the garment manufacturers to set up various units at the same place. It would reduce overhead and transportation cost. Moreover, 50 per cent subsidy on building infrastructural facilities in the textile park would offer a great support to the entrepreneurs.