After taking cognizance of the problems the dyeing industry in Tirupur was facing and on recommendation of the Ministry of Textiles, the Finance Ministry has sanctioned Rs 200 crores to Tamil Nadu for the 18 CETPs (Common Effluent Treatment Plants) as an interest free loan to be converted into grant based on the performance of the concerned CETPs. The particular industry was on the verge of closure due to severe financial crisis.
The industry was facing problems due to their huge investments in the first ever Zero Liquid Discharge (ZLD) projects in the country. The move will help ailing CETPs and 450 dyeing units to recover from the financial crisis and help them to complete the project to achieve 100 per cent capacity utilisation, it added.
More than 450 dyeing units in Tirupur had collectively set up 18 ZLD enabled CETPs with a total cost of Rs 1,013 crore. The project has become a global standard and appreciated by the environmentalist and processing industry world over. However, being the first project of its kind it had several technical challenges and cost overrun which put them into financial crisis due to outstanding Bank loans and incomplete projects, the statement said. Tirupur is a hub of textile processing and knitting industry providing employment to over 5 lakh persons and contributes 22 per cent of the total garment export of the country.