West Bengal to soon have a 'Jute Park'

Joy Roy Choudhury, Kolkata

The Union textiles ministry and the state government are planning to set up a 'jute park' in West Bengal, with a special economic zone (SEZ) status. The proposed jute park will be set up on the lines of the existing industrial parks.

The proposed jute park, to be spread over 100 acres of land is expected to entail an investment of about Rs 60 crore. Sources said the textiles ministry has already initiated a dialogue with the West Bengal government in this regard. The Union textiles ministry decided to zero in on West Bengal as majority of the jute mills are concentrated in this region. Such a move, feels the industry, will help in the revival of the ailing jute industry.

It has been suggested that the project could be implemented through a public-private partnership (PPP), and a special purpose vehicle (SPV) will be formed to implement it. The SPV will have participation from Jute Manufacturers' Development Council (JMDC), West Bengal Industrial Development Corporation (WBIDC), West Bengal Industrial Infrastructure Development Corporation (WBIIDC) and the jute industry, at large.

The project will be financed by all stakeholders besides securing loans from banks and financial institutions. The proposed jute park will have the capacity to accommodate 45 large, medium and small jute units. Industry sources said once completed the park will fetch an investment of about Rs 250 crore and generate employment opportunities for about 10,000 people.

The park would churn out an annual turnover of Rs 100 crore during the initial years of operation and subsequently about Rs 400-500 crore during the 5th-6th year. Exports from the park have been estimated between Rs 25 crore and Rs 75 crore at various stages of operation.