Indian textile industry has a legendary heritage for ages. It is one of the leading industries; globally. Though largely unorganized earlier, the scenario changed radically during the post economic liberalization during the 90s. Opening up of the economy provided the industry with much thrust making it successful. The industry enjoys inherent advantages of resources, labor force, climatic conditions and many more. Despite all benefits appropriate infrastructure proves to be a bottleneck for its growth and enhancement.


The Indian Government, to provide world class infrastructure for textile industries has come up with the Scheme of Integrated Textile Park (SITP). Earlier approved in July 2005, the proposed plan was to create textile parks in potential growth centers. The parks would cover all segments of the textile industry such as spinning, weaving, knitting, processing and garmenting.


Scheme for Integrated Textile Parks (SITP):


The SITP is launched by merging two existing schemes namely Scheme for Apparel Parks for Exports (APE), and the Textile Center Infrastructure Development Scheme (TCIDS). The main objective is to-provide infrastructure facilities for setting up textile units in potential growth areas matching with the international social and environmental standards. A panel of professional agencies was also set up for project identification and execution. Plans were chalked for setting up the textile parks in Special Economic Zones (SEZs), provided the special provisions of SEZs are applicable. If the parks were set up outside SEZs, then the Ministry of Commerce & Industry may pursue them, and if so desired may also declare the ITP as SEZ. Under the SITP scheme, 40 textile parks were sanctioned. The scheme attracted an investment of र3500 crore generating an employment for 15,000textile workers.

The ITP scheme targets industrial clusters having high potential for growth. The proposed projects will cover infrastructure, building for production and other supporting activities. The ITP includes the following components:

  • Group A - Land

  • Group B - Infrastructure like compound wall, drainage, water, power, effluent treatment etc.

  • Group C - Building such as testing labs with equipments, training centers, cr�che, canteen, hostel, offices, recreation, marketing support such as forward and backward linkages.

  • Group D - Factory building for production Group E - Plant & Machinery

The cost of the project was funded from the Ministry of Textile, State Government, State Industrial Development Corporation, Industry, Project Management Consultant, and Loan from Banks and other Financial Institutions. The Government of India's (GOI) support for the scheme will be by way of grand or equity limited to 40% of the project costs with a ceiling of 40 crores.


Current Scenario:


The Cabinet Committee on Economic Affairs (CCEA) has finally given approval for 21 apparel parks sanctioned in the 11th Five Year Plan in October 2010. Analysis reveals that 40 ITPs were sanctioned with proposals of र4,140.44 crore of which Government assistance would be for र1,487 crore. Of these, 8 parks have been successfully completed, 13 have acquired 90% of grants, and the rest are in progress.


Scheme for Integrated Textile Parks (SITP): progress detail



Press Trust of India reports the Finance Minister P Chidambaram saying, "21 parks were sanctioned in the 11th Plan and this programme is spilled over in the 12th Plan. Therefore, the Cabinet approved implementation of 21 parks in 12th Plan."


The ITP scheme was intended to cover all segments of the textile industry from spinning, weaving to garmenting. Currently 14 parks are involved in spinning, 25 in weaving 7 in knitting, 14 in processing, 22 in garmenting, 6 in embroidery, and few others in technical textiles, and handloom.


Funds allotted by GOI, and utilized by the states


Percentage utilized out of allotted funds



Maharashtra has the maximum number of units sanctioned; 15, followed by Tamil Nadu with 10, Rajasthan with 9, and Gujarat with 8, Andhra with 7, and Punjab with 3. Karnataka and West Bengal has received sanction for 1 ITP each. Tripura, Jammu & Kashmir, Himachal Pradesh, and Uttar Pradesh have also received sanction for one ITP, which would be the first one in their state.


Both the industry and the community surrounding the parks can acquire many key advantages from the collective developmental activities. Green textile field parks are necessary to handle the increasing cost of production, and to preserve environmental compliances.


References:


1.      Aepcindia.com

2.      Textile Excellence, Nov, 2012.