SV Pittie Sohar Textiles, backed by India’s ShriVallabh Pittie Group (SVP), has commenced construction work on a major cotton yarn manufacturing project at Oman's Sohar Port and Freezone, said a report.

The investment in the project is expected to stimulate the growth of a textile hub in Oman in the future, added the Oman Daily Observer report.

SVP is a global leader in the manufacturing of cotton yarn and other raw materials for textiles.

Inexco Group, a 35-year-old UAE-based company specialising in textile mill construction, has been awarded the contract to execute the first-of-its-kind project on an engineering, procurement, construction (EPC) basis.

Bank Sohar is the finance partner for the project, which involves an investment of $150 million in the first phase.

SV Pittie Sohar Textiles is targeting completion of Phase 1 by March 2019 with a capacity of 150,000 spindles and 3,500 rotors.

The total investment in the project is estimated at $300 million — an investment that has the potential to ignite the growth of a wider textile cluster over the long-term, added the report.