Odisha is embarking on an ambitious journey to transform its textiles sector, eyeing an investment of ₹10,000 crore over the next five years. This initiative seeks not only to invigorate the state’s economy but also to generate over 100,000 employment opportunities. Bhupendra Singh Poonia, Managing Director of the Industrial Promotion & Investment Corporation of Odisha (IPICOL), revealed to Mint the state’s proactive approach in luring investors to the textiles domain.
Under the revised Industrial Policy Regulation (IPR), investors in the textiles sector stand to benefit from a 30% reimbursement facility approved by the state government. This incentive will be disbursed in five annual installments, amounting to 6% reimbursement per year following the commencement of commercial production.
This strategic move aligns with Odisha’s broader agenda outlined in the technology-focused IPR, unveiled in December 2022, which aims to attract investments across various textiles segments, encompassing apparel and technical textiles crafted from synthetic and natural fibers.
Poonia highlighted Odisha’s nascent presence in textiles exports, emphasizing the untapped potential, particularly in technical textiles and apparel. Currently, 26 proposals in this sector are in various stages of development, indicating a significant surge in investor interest.
Several prominent players, including Shahi, Aditya Birla, local entity White Lotus, and Welspun Living, have committed investments ranging from ₹50 crore to ₹4,000 crore. While some companies declined to comment, their investment pledges underscore the growing confidence in Odisha’s textiles landscape.
In addition to the financial incentives, the state government is extending support by offering a ₹2 per unit electricity cost reimbursement for ten years, specifically targeting textile firms. Furthermore, Odia workers will benefit from the government’s coverage of ESIC and EPFO contributions, promoting local employment.
To enhance the workforce’s accessibility to manufacturing units, plans are underway to construct hostels for women workers, providing accommodation for up to 35,000 individuals at nominal rents, thus improving connectivity and transportation access.
India’s technical textiles market is on a trajectory of rapid expansion, projected to reach ₹1.81 trillion in FY24. Despite a slight dip in textiles exports, India’s position as a global leader in cotton, jute, and silk production, coupled with its dominance in hand-woven fabric, signifies immense potential for growth and innovation in the sector. Odisha’s bold investment initiative is poised to propel the state into a prominent hub within India’s burgeoning textiles landscape.
Prasanta Patnaik 
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