Indian Govt approves 21 new Textile Parks (India)

Government has sanctioned 21 new Textiles Parks under the Scheme for Integrated Textiles Parks with a project cost of Rs. 2100 crores to be implemented over a period of 36 months. Minister for Commerce, Industry and Textiles Shri Anand Sharma as Chairman of the Project Approval Committee under the Scheme accorded approval to the recommendations of the Inter Ministerial Project Scrutiny Committee which examined 55 proposals for new Textiles Parks in the country.

The Scheme for Integrated Textiles Parks seeks green field investments in textiles sector on a public private partnership basis with the objective of setting up world class infrastructure for Textiles industry.

Commerce, Industry and Textiles Minister Shri Anand Sharma said “sanction of new Textiles parks would catalyze significant additional investments with industry utilizing the benefits both under the Scheme for Integrated Textiles Parks for development of common infrastructure; and under the Technology Upgradation Funds Scheme for installation of Plant and Machinery.”

Government has enhanced the allocation under TUFS from Rs. 8000 crores to Rs. 15404 crores under the 11th Five Year Plan and under the SITP an allocation of Rs. 400 crores has been made for sanction of new Textiles Parks in April 2011. Commerce Industry and Textiles Minister said that the new Textiles Parks would leverage an investment of over Rs. 9000 crores and provide employment to 4 lac textiles workers. Government would finance common infrastructure with a subsidy upto Rs. 40 crores per Textiles park.

Government has received a huge response to the roadshows held at Chennai, Bangalore, Hyderabad, Ahmedabad and Mumbai for seeking proposals for Textiles Parks under the Scheme for Integrated Textiles Parks. Proposals received were scrutinized by an inter ministerial Project Scrutiny Committee on the basis of project cost, land size, net worth of investors, employment generation and value chain to be developed by the industry.

Government also sought to ensure balanced regional development, promote textiles industry in North Eastern States and in States where the industry is in a nascent stage of development and promote textiles parks in cooperative & handloom sectors. 6 new Textiles Parks have been sanctioned in Maharashtra, 4 in Rajasthan, 2 each in Tamil Nadu and Andhra Pradesh, 1 each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh, Karnataka, Jammu & Kashmir and West Bengal.

The product mix in these parks would include apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles including medical textiles, carpet parks, powerloom parks. “The focus of Government has been to ensure value addition through aggregation to best utilize India’s raw material surplus in cotton and cotton yarn for enhanced labor employment and export earnings” said Textiles Minister Shri Anand Sharma.

Lead Investors heading the Special Purpose Vehicles of the above listed Textiles Parks and the Project Management Consultant firms would be invited by Government in the coming days to enter into MOUs for implementing the projects. Government seeks to ensure timely implementation of the sanctioned projects and changes to avoid cost and time overruns have been incorporated into the MOUs to be entered into by Government under the scheme.

Commerce, Industry and Textiles Minister said that given the considerable demand for Textiles Parks in the country and given the success of the Scheme in the 11th Five Year Plan, Textiles Ministry would be seeking a higher allocation under the 12th Five Year Plan. It may be highlighted that of the 40 textiles parks sanctioned under the 11th Five Year Plan, 24 Textiles Parks have started operations and have attracted investments of Rs. 18880 crores, with a Government subsidy of Rs. 1420 crores.