Gadwal Handloom Park to end decade-long wait

Gadwal: Thanks to the Centre’s push to the handloom sector, investment made by the State and handloom entrepreneurs here, Gadwal Handloom Park will become a reality soon.

Proposals for the establishment of the handloom park date back to the time when UPA was in power at the Centre and YS Rajashekar Reddy was the Chief Minister of the erstwhile Andhra Pradesh.

Gadwal MLA DK Aruna had then sent proposals to the Centre almost a decade ago and permissions were granted by the Centre then. YSR also allotted 47 acres of land in Pudoor of Gadwal mandal. However, no funds were given by the State government and the project failed to gain a concrete form.

The government had then failed to even decide on a self-sustaining business model to run the park. Hence, the project failed to take-off for almost a decade.

With the Centre’s push to the sector and the State government’s efforts to revive the industry in Telangana, a feasible model to run the handloom park became a possibility.

Special Purpose Vehicle (a conglomeration of handloom entrepreneurs) has been given the task of running the park, including procurement, manufacturing and marketing of Gadwal handloom sarees which would be manufactured in the park. Some 24 entrepreneurs have come forward and invested Rs 4.65 crore as equity for setting up the park. A committee, which will be headed by the District Collector, will oversee the park’s operations.

The committee will also be comprised officials of Handloom and Textiles Department and entrepreneurs

The State government contributed Rs 6.15 crore and the Centre Rs 4.17 Crore as of now for setting up the park. Initially, 200 modernised looms will be installed in the park, providing employment to 300 people in Gadwal district. Yarn and dyes for production will be procured from Bangalore and mainly dyeing, designing and weaving will be done in this park. There will also be a residential facility for entrepreneurs in this park.

“The main objective of the park is to encourage well-performing handloom units to take a corporate form and become self-sustaining. As handloom weaving skills are waning away rapidly, this park will help in protecting these skills. Through this project, entrepreneurs are also being introduced to the corporate sector and outside weavers can also avail services such as dyeing and designing at the facility. Above all, it will take the fame of Gadwal to another level nationally and internationally,” said Govind Rao Ganapa, a master weaver, who is also an entrepreneur part of the special purpose vehicle, speaking with Telangana Today on the occasion of the foundation-laying ceremony of the handloom park on Wednesday.

However, there is a problem with working capital which has become a bottleneck for the SPV.
“At least Rs 5-6 crore working capital will be needed and banks will not give loans unless some land is mortgaged. Therefore, we are requesting the State government to register the land in the name of the SPV on certain conditions so that we can avail the loans. We are also giving a representation to KTR regarding that today (Wednesday). It would also be great if we can get a grant from the State government,” Govind Rao said.

Though business would be slow initially, he predicts that annual revenue could reach Rs 30 crore once the industry gets fully established. Though sarees would be woven here initially, the park was open to diversify its products and to install more looms if demand increases or if more entrepreneurs come forward to become part of the SPV, he added.

Govind Rao said there was good demand for Gadwal sarees not only here but also nationally. He was hopeful that the products made here would be exported in the near future.

“It is a private limited company and anybody interested to participate in our efforts are welcome,” he said.