Scheme for Integrated Textile Parks: Background and Key Features

Scheme for Integrated Textile Parks: Background and Key Features

Question - The Scheme for Integrated Textile Parks has been extended to the 12th Plan. Discuss the background and key features of this scheme.

Background

• The Scheme for Integrated Textile Parks was formulated in the 10th 5 Year plan to provide excellent infrastructure facilities for the textile industry

• The scheme was formed through a merger of the Apparel Parks for Exports Scheme and the Textile Centre Infrastructure Development Scheme

Features

• The SITP scheme targets industrial clusters and locations which have high growth potential and require strategic interventions through provision of excellent infrastructure.

• The project cost encapsulated common infrastructure and buildings for production/support activities based on the needs of the Integrated Textile Parks

• Scheme is implemented through SPVs or Special Purpose Vehicles wherein Industry Associations/Groups of Entrepreneurs are the key promoters of the ITPs

• Within each ITP, there are separate SPVs formed in conjunction with local industry representatives , central and sate government as well as financial institutions

• The SPV will be Corporate Body under the Companies Act always unless permitted otherwise by the Project Approval Committee

• SPVs have operational autonomy to ensure they do not come under governmental control

• Estimated project cost for the sanctioned projects under this scheme is INR 4121 crore approximately wherein Central government will provide assistance of 1427 crore.Amount of 1058 crore approximately has already been released under the scheme.
• The scheme focuses on industrial clusters/locations with tremendous growth potential needing strategic intervention through excellent infrastructure

Each ITP has the following components:

- Group A: Land

- Group B: Common Infrastructure: includes compound wall, drainage water supply, electricity supply including captive power plant, telecom lines, effluent treatment, utilities etc.

- Group C: Buildings for common facilities scubas testing lab (including equipments), design centre, training centre, trade centre, creche, canteen, worker’s hostel, offices of service providers, recreation and rest facilities , marketing support systems and so on.

- Group D: Factory buildings constructed for production purposes

- Group E: Plant and machinery

• ITPs may have other features to suit specific business requirements

• The scheme will be implemented through main promoters of the ITPs which will be industry associations and groups of entrepreneurs

• Professional agencies will be appointed as Project Management Consultants for the implementation of the scheme

• PMCs will also ensure rapid implementation of projects in a transparent manner

• SPVs are focal points of implementation of the scheme

• The state government will be providing the clearances for setting up ITP, procurement of land and so on besides providing a conducive work environment and special facilities as well as dovetailing other schemes for effectiveness of the projects

Stats and Facts

• The total project cost of this scheme will be funded through a mix of equity and grant from Ministry of Textiles as well as State Industrial Development Corporation, state governments, industry, PMVs, Loans from banking and financial institutions

• GoI will support the scheme through grants or quit limited to 40% of project cost to a ceiling of INR 40 crore

• GoI will support the scheme through a grant through SPV and combined equity stake of GoI/ State governments/ State Industrial Development Corporations should not be more than 49 percent

• GoI support will be provided up to 90 percent of project cost subject to ceiling of INR 40 crore for the two starting projects in NE states and J&K

• Scheme aims at creating textile parks of international standards which can meet global, environmental and social standards

• Each ITP will have 50 units and the number of entrepreneurs and resulting investment in the parks could vary from one project to another

• ITPs may be established in SEZs

• They may also be declared as SEZ following approval by the Ministry of Commerce & Industry