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Scheme for Integrated Textile Parks (SITP) to be continued in 12th Five Year Plan: CCEA

October 5th, 2013

The Cabinet Committee on Economic Affairs (CCEA) approved continuation of the Scheme for Integrated Textile Parks (SITP) in the 12^th five year plan. It also approved new projects for utilizing the balance of Rs 717 crore left in the 12^thfive year plan allocation, after meeting committed liabilities of the sanctioned 61 parks.

What are the objectives of Scheme for Integrated Textile Parks (SITP)?

The main objective SITP is to provide the industry with world classinfrastructure facilities for setting up their textile units. The product mix in these parks would include apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles including medical textiles, carpet parks and powerloom parks. SITP seeks green field investments in textiles sector on a public private partnership basis with the objective of setting up world class infrastructure for Textiles industry. Each Integrated Textile Park (ITP) would normally have 50 units. The number of entrepreneurs and the resultant investments in each ITP could vary from project to project.

The ITPs may also be set up in the Special Economic Zones (SEZs), in which case the special provisions of SEZs would be applicable for them. In case these are set up outside SEZs, proposal may be pursued with the Ministry of Commerce & Industry to declare the ITP as SEZ, if it is so desired.

The Scheme for Integrated Textile Parks (SITP) was approved in the 10^th Five Year Plan (July 2005)  to provide the industry with world-class infrastructure facilities for establishing their textile units by merging the erstwhile Apparel Parks for Exports Scheme (APES) and Textile Centre Infrastructure Development Scheme (TCIDS).

The ‘Scheme for Integrated Textile Parks (SITP)’ was launched by merging two schemes, namely, Apparel Parks for Exports Scheme (APES) and the Textiles Centre Infrastructure Development Scheme (TCIDS).

Role of State Government: 

• Providing all the requisite clearances, wherever needed, for setting up the ITP and providing the necessary assistance for Power, Water and other utilities to the ITP.
• Assist in identification and procurement of suitable land.
• The State Government agencies like Infrastructure/Industrial Development Corporations may also participate in the projects by way of subscribing to the equity of SPV or by providing grants.

Funding Pattern:

• The total project cost shall be funded through a mix of Equity/Grant – from the Ministry of Textiles, State Government, State Industrial Development Corporation, Industry, Project Management Consultant and Loan – from Banks/ Financial Institutions.
• The Government of India’s (GOI) support under the Scheme by way of Grant or Equity will be limited to 40% of the project cost subject to a ceiling of Rs. 40 crore.
• GOI support under the Scheme will be generally in the form of grant to the SPV unless specifically decided to be equity.
• The combined equity stake of GOI/State Government/State Industrial Development Corporation, if any, should not exceed 49% if the enhanced ratio of 40:60/49:51 is maintained.
• Central Government will be entitled to place a nominee on the Board of the Park as per scheme guidelines.
• GOI support will be provided @90% of the project cost subject to a ceiling of Rs. 40 crore for first two projects in the States ofArunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,Nagaland, Tripura, Sikkim and  & Kashmir.