Under the improved Scheme for Integrated Textile Park, Indian government is planning to set up 1,000 acre mega textile parks to attract foreign investment in the textile sector.
According to a senior government official, the scheme was launched in 2005 with an aim to provide industry with state of the art, world-class infrastructure facilities for setting up their textile units. “A total of 59 textile parks have been sanctioned under SITP by the textiles ministry out of which 22 textile parks have been completed and rest are under various stages of construction,” added the official.
Under the SITP, infrastructure facilities for setting up textile units are developed in a Public-Private-Partnership (PPP) model in which the government grants upto 40 per cent of project cost with ceiling limit of Rs 40 crore for each park.
In 2015, an expert committee on textiles suggested the ministry to partner with states to set up these mega textile parks so as to be able to absorb about $5 billion per year of fresh investment. They recommended that the textile parks should be developed especially in the planned Industrial Corridors and be provided cheaper and reliable power supply.
Textile manufacturers and exporters have concurred that the existing textile park scheme is not successful. According to a Delhi based manufacturer of textiles and apparel, the government is not happy with the existing scheme and the size of the parks now which can be anything above 20 acres. “These are smaller parks and they also have not taken off very well. There is empty space in the parks and a lack of investment climate had hindered the scheme’s progress,” added the manufacturer.
Experts also mentioned that the government may also revamp the Technology Upgradation Fund Scheme (ATUFS) which is used to promote technical textiles and generate employment in the apparel and garment sectors.