The Rajasthan government has signed an investment proposal for 23 textile projects amounting to a little over Rs 7,000 cores. As of now, 18 of them have got off the ground, said a top official in the industry department. The textile industry that was pilloried for inflicting large-scale damage to environment appears to have emerged as the dark horse to become the top sector for clinching the highest conversion rate of investment proposals into projects.

As most investors have land already in their possession, they have started construction of the units. In fact, companies like Nitin Spinners, RSWM, and Sudiva Spinners have actually started production, said L C Jain, additional director, industries. The states textiles sector, which provides direct and indirect jobs to nearly 7 lakh people and contributes 17 per cent to its exports, has been accorded priority status. It is one of the very few sectors to enjoy interest subsidy of 5-7 per cent given by the state government.

Other sweeteners like VAT exemption of 50 per cent on purchase of raw material and 50 per cent exemption of entry tax on capital goods are extended to the investors.

Rajasthan is today counted as one of the leading states for cotton production with an annual output of about 20 lakh bales. Similarly, 85 per cent of the wool produced in the country is from Rajasthan.