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                            Textile Ministry report indicates a failure in The Scheme for Integrated Textile Parks

Textile Ministry report indicates a failure in The Scheme for Integrated Textile Parks

The Scheme for Integrated Textile Parks (SITP) was launched in 2005 to provide the industry with state of the art world-class infrastructure facilities for setting up their textile units. It was approved in the 10th Five Year Plan (July 2005) by merging the erstwhile Apparel Parks for Exports Scheme (APES) and Textile Centre Infrastructure Development Scheme (TCIDS). But as per a report issued by the textile ministry the Scheme for Integrated Textile Parks (SITP) failed to achieve its objectives due to factors like small size of the parks and lack of marketing support from the government.

Textile ministry specified that a new scheme -- Mega Textile Parks -- be launched with parks having minimum land size of 1,000 acres, and infrastructure support in the form of readymade factory sheds, warehouse, incubation centres and testing labs, with express connectivity to seaports and airports. The implementing agencies for the new scheme should be entrepreneurs led SPV (special purpose vehicle), industry associations or state government either through their institutions or in PPP mode, says the report on review of the SITP scheme. 

The report cited high rentals in some parks, changes in other government schemes or regulations, lack of marketing efforts, no special benefits available for investors in parks, poor accessibility and challenges for units in SEZ Parks as some of the factors responsible for the scheme failing to attain its objectives. Due to lower occupancy rates, parks have not yet attained their planned investment levels. The current investment in 30 functional parks is around Rs 7,628 crore against their planned investment of Rs 16,628 crore. As most of the parks are of the size from 25 to 75 acres hence the Scheme has had limited impact in bringing scale to the textile industry, pointed out the report.  It suggested that the mega textile parks should be established in Industrial Corridors and/or areas with proximity to seaports, and the financial support must be linked with extent of area developed, without any ceiling on financial assistance. The cost of manufacturing inside the park was found to be only marginally higher than an industrial zone in vicinity due to higher cost of land and maintenance inside the park. 
The report also brought out the exact statistics by pointing out that the current employment level in 30 functional parks is around 68,000 people, 57 per cent of their planned employment. There are 74 parks sanctioned till date. Out of these 30 parks are functional, while eight have applied for cancellation and others are at various stages of implementation. The functional parks are involved in production of spun yarn, fabric weaving and knitting, fabric processing, garmenting, made-up manufacturing, and technical textiles. 





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