Govt reviewing scheme for integrated textile parks

The Indian government is reviewing the Scheme for Integrated Textile Parks (SITP) after a recent report commissioned by the Ministry of textiles found that the scheme has failed to achieve its objectives. The primary objective of the SITP is to provide the industry with worldclass state-of-the-art infrastructure facilities for setting up new textile units.

The report by Wazir Advisors to the Ministry has cited various reasons for the scheme failing to attain its objectives. The reasons include 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.

“We are reviewing the SITP as many special purpose vehicles (SPVs) were found violating its norms as non-textiles units were operating from inside the parks,” a senior textiles Ministry official told a news agency.

The report on review of the SITP has suggested a new scheme – Mega Textile Parks – to 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 new scheme should be implemented by entrepreneurs-led SPV, industry associations or state government either through their institutions or in PPP mode, the report said.

Source: Fibre2Fashion