The Centre would extend Rs 40 crore assistance for the park, he told reporters here, adding that the state has also recommended to the Union Government to start another one in Bellary.
In addition, the government proposed to set up textile parks in Belgaum, Chikkaballapura, Tumkur, Chitradurga and Kolar, Prakash said.
According to state government officials, Karnataka accounts for Rs 7,000 crore of the country's total textiles production value and 32 per cent of the total garments output.
Karnataka was a partner state in the recent Technotex 2011, an international seminar on technical textiles held in Mumbai where Prakash invited industrialists to invest in the sector in the state and received good response. About Rs 500 crore investment flow is expected in the state, Prakash said.
The Minister said those setting up industries in textile parks of the State, which has about 2,500 garment units, would be given a power subsidy of Rs one per unit.
There are a total of 55,000 weaver families in the State, where there are an estimated 55,000 handlooms and 10.07 lakh powerlooms, and all of them would be covered by group insurance scheme, Prakash said.
On Karnataka's 2008-2013 textile policy, he said investment of Rs 5,000 crore has flown into the state from 2008. The policy would be modified keeping in view the requirements of the sector and to give special thrust to technical textiles field and attract investment in that area.
The government also is mulling extending power subsidy to spinning mills, he added.