Nitin Gadkari approves khadi, zari clusters, 2 flatted units in UP

(This story originally appeared in on Apr 03, 2021)

LUCKNOW: Union minister Nitin Gadkari has given in-principle nod to set up three clusters in Uttar Pradesh: one for fusion khadi work, another for zari zardosi work, and two flatted factories.

Gadkari and defence minister Rajnath Singh, who were in Lucknow on Friday, met state MSME minister Sidharth Nath Singh and discussed the possibility of setting up clusters under a central scheme. Among the various ideas floated, the UP minister proposed three ideas to which Gadkari has given an in-principal nod.

Under the cluster policy, in which the maximum limit for a single cluster is Rs 15 crore, the Centre contributes 60% while the state government’s share is 40%. “The three of us met on Friday to discuss the possibility of having clusters in UP and I am very happy that Gadkariji has agreed to these three proposals. These projects will not just generate employment but also give a boost to exports from UP. We will formulate proposals for the three schemes very soon and send them for formal clearance to the Centre,” Sidharth Nath Singh said.

In the fusion cluster for khadi, zari zardosi work and chikankari embroidery will be done on fabric. Singh said the cluster would also host facilities for training workers, provide help with machinery and assistance in branding the final product.

The other cluster will be for zari zardosi work. Lucknow sees a lot of manufacturing of burqas and abayas for export to Saudi Arabia, the minister said, adding that if these can be embellished with traditional embroidery, then the market for these will improve tremendously.

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The third cluster pertains to two flatted factories. These will support non-polluting manufacturing work like tailoring, handmade or machine-made leather goods, pickle units, etc. The state already has flatted factories or plans to set up such units in Agra, Kanpur and Gorakhpur.

In June 2020, UP State Industrial Development Authority had adopted a policy to allow flatted factories in the state. These are multi-storeyed buildings in which multiple non-polluting industrial units can operate. The concept allows more activity in a limited space and considerably less investment by a unit which only has to pay rentals. Minimum land requirement of 5 acres has been set for development of such a factory which cannot be developed in a residential area or mixed land use area.


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