Textile industry welcomes Budget announcement to set up textile parks; shares mixed

NEW DELHI: Shares of textile companies traded on a mixed note after Finance Minister Nirmala Sitharaman proposed to set up textile parks and a Production-Linked Incentive (PLI) Scheme for them on Monday.

“A scheme of Mega Investments Textile Park will be launched in addition to PLI Scheme which will create world-class infrastructure with plug and play facilities to enable global champions in exports,” said Sitharaman in Parliament.

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“Seven textile parks will be developed in the country. Emphasis will be laid on asset monetisation. More economic corridors will be built across the country to further augment road Infrastructure,” she added.

Dhanalaxmi Roto Spinners (up 0.69 per cent), Suryalata Spinning Mills (up 5.01 per cent), Shri Dinesh Mills (up 5.00 per cent), Sunil Inds. (up 5.00 per cent) , Sintex Industries (up 4.99 per cent), H P Cotton Textile Mills (up 4.98 per cent), ELAND (up 4.94 per cent) , Suryalakshmi Cotton Mills (up 0.34 per cent) and AYM Syntex (up 4.94 per cent) were among the top gainers.

Meanwhile, Mohota Inds (down 5.00 per cent) , Sumeet Industries (down 5.00 per cent) , Morarjee Textiles (down 4.90 per cent), Garware Marine Industries (down 4.95 per cent), Winsome Textile Industries (down 3.06 per cent) , HITECHWIND (down 3.80 per cent), Shekhawati Poly-Yarn (down 4.88 per cent), Flora Textiles (down 4.87 per cent) and Gagan Polycot India (down 4.86 per cent) were among the top losers.

The NSE Nifty50 index ended 646.60 points or 4.74 per cent higher at 14,281.20, while the 30-share BSE Sensex settled at 48,600.61, up 2,314.84 points or 5.00 per cent.

The industry welcomed these announcements with both hands.

“With focus on Aatmanirbhar Bharat, announcement of establishment of 7 textile parks by the Modi government in Budget 2021 should be welcomed with open arms. It’s a big boost for the local textile industry. And, this will help India become a world leader in the textile sector,” said Anuj Mundra, Chairman and MD, Nandani Creation. “Sitharaman in her Union Budget 2021 has clearly conveyed a message that this government believes in giving a big shot in the arm of textiles and local manufacturing with special focus on Vocal for Local.”