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Scheme for Integrated Textile Park

  May 06, 2020

Scheme for Integrated Textile Park


The Scheme for Integrated Textile Park (SITP) was approved during the 10th Five Year Plan in 2005 to encourage private investments and employment generation in textile sector by facilitating world class infrastructure for common facilities, such as roads, water supply treatment and distribution network, power generation and distribution network, effluent collection treatment and disposal system, design centre, warehouse, first aid centre, etc.

Under the SITP, infrastructure facilities for setting up of textile units are developed in a Public-Private-Partnership (PPP) model, with the government granting up-to 40% of project cost with ceiling limit of ₹40 crore for each park. 

What is the current Position?

The scheme has failed to attract investors and till now only 59 SITP has been sanctioned under the scheme.

The problems have been attributed to delay in obtaining land and other statutory clearances from state governments and slow fund mobilisation by the textile parks.

The delay is hindering with the aim of National textile policy, “The idea to make mega textile parks is to attract FDI”.

So what is government stand Now?

As textile and clothing sector contributes around 10% of industrial production, about 12.5% to the export earnings and 3 percent in GDP, we cannot neglect the sector.

The government is not satisfied with above scheme and existing size of units which is around 20 acres. So the government is planning to set up 1,000-acre mega textile parks where there will be  world-class infrastructure facilities for setting up textile units.