Scheme for Integrated Textile Park (SITP)
Recently, the government has proposed to set up Mega Textile Park by Ministry of Textiles.
• Scheme for Integrated Textile Park is a demand driven scheme in which the prospective entrepreneurs can send their proposals to the Government, after completion of stipulated conditions as per guidelines.
• The scheme was launched in 2005 and it aims to provide industry with state of the art world-class infrastructure facilities for setting up their textile units.
• The infrastructure facilities under SITP for setting up of textile units are developed in a Public-Private-Partnership (PPP) model.
To boost the textile sector of India the government is implementing SITP model.
Under SITP, Government of India will provide grant ofupto 40% of project cost with ceiling limit of Rs 40 crore for each park.
Also, centre will provide grant upto 90% of the project cost for first two projects (each) in the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand and Union Territory of Jammu & Kashmir and Union Territory of Ladakh.
The Special Purpose Vehicle (SPV) will be formed by the representatives of local industry, Financial Institutions, State Industrial and Infrastructural Corporations and other agencies of State and Central Governments registered as a Corporate Body under the Companies Act.
The government is considering a plan to set up 1,000-acre mega textile parks as it revamps the Scheme for Integrated Textile Park (SITP) whose slow progress is attributed to delay in obtaining land and other statutory clearances from state governments and slow fund mobilisation by the textile parks.
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.
Other initiatives taken by Government of India are
i. Knitting and Knitwear Sector: In order to boost production in knitting and knitwear clusters, Government has launched a separate scheme for development of Knitting and Knitwear Sectorto boost production in knitting and knitwear cluster at Ludhiana, Kolkata and Tirupur.
ii. Government is implementing Amended Technology Up-gradation Fund Scheme (ATUFS) for technology up-gradation of the textile industry to incentivize production with an outlay of Rs.17, 822 crore during 2016-2022. It is expected to attract investment of Rs.1 lakh crore and generate 35.62 lakhs employment in the textile sector by 2022.
iii. Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment and exports in the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; (ii) production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
iv. Scheme for Integrated Textile Park (SITP): Government of India grant with a ceiling limit of Rs. 40 crore for setting up textiles parks for creation of world class infrastructure facilities for setting up of textile units.
v. National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes under which financial assistance is provided for raw material purchase, looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, marketing of handloom products & loans at concessional rate etc. for enhancing production and boost the textile sector.
vi. National Handicrafts Development Programme (NHDP) and Comprehensive Handicraft Cluster Development Schemes aims at holistic development of handicrafts clusters through integrated approach by providing support on design, technology up-gradation, infrastructure development, market support etc.
vii. PowerTex India: A comprehensive scheme for Powerloom sector with components relating to Powerloom up-gradation, infrastructure creation, concessional access to credit, etc.
viii. Silk Samagra – An integrated Scheme for development of silk industry with components of research & development, transfer of technology, seed organization and coordination, market development, quality certification and export.
ix. Jute ICARE for increasing the income of farmers by at least 50% through promotion of certified seeds, better agronomic practices, use of microbial reusing of Jute plant, retting to produce quality of jute, increase productivity and to reduce the cost of jute production for the jute farmers.
x. North East Region Textile Promotion Scheme (NERTPS) for promoting textiles industry in the NER by providing infrastructure, capacity building and marketing support to all segments of textile industry.
The key to restoring the glory of Indian textile industry lies in its productive workforce, safe work environment and the use of latest technology. According to the ‘Vision, Strategy and Action Plan for Indian Textile and Apparel Sector’, taking all innovative steps in partnership with industry will create additional 35 million jobs in the textile sector by 2024-25.