Govt clears 21 new integrated textile parks in 9 states

The government has cleared 21 new textile parks under the scheme for Integrated Textiles Parks, which seeks green-field investments in the textiles sector on a public private partnership basis with the objective of setting up world-class infrastructure for textiles industry. The total project cost will be around Rs 2,100 crore, which will be implemented in a period of 36 months.

The Minister for Commerce, Industry and Textiles 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.’

As per the textile ministry statement, the government has enhanced the allocation under TUFS Rs 8,000 crore to Rs 15,404 crore in the 11th Five Year plan and in Scheme for Integrated Textiles Park (SITP) an allocation of Rs 400 crore has been made for sanction of new Textile Parks in April 2011. The new Textile Parks would attract around Rs 9,000 crore of investment and offer employment to around 4 lakh workers. The government would finance common infrastructure with a subsidy upto Rs 40 crore per textile park.

The government has cleared 6 new textile parks in Maharashtra, 4 in Rajasthan, 2 each in Tamil Nadu and Andhra Pradesh, 1 each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh, Karnataka, Jammu and Kashmir and West Bengal. The product in these parks would include apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles including medical textiles, carpet parks, and power-loom 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 Sharma. By adding further he said, 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 18,880 crore, with a government subsidy of Rs 1,420 crore.