Textile ministry plans 24 parks for Rs 1k cr

NEW DELHI: The textile ministry has mooted establishment of 24 new textile parks, increasing the total number of such parks to 50. The 24 new parks would require an estimated investment of over Rs 1,000 crore. The proposal is part of the draft plan to raise the country’s share of global textiles trade to 10% by 2015 from the current 3%. A medium term target of 8% has been set for 2010. The textile ministry has already approved 26 textile parks under the Scheme for Integrated Textile Parks (SITP). Many of the parks are at various stages of implementation.

The draft plan for raising competitiveness in the sector has been prepared in consultation with the National Manufacturing Competitiveness Council (NMCC), which has marked out textiles and garments as a priority sector for increasing competitiveness. The plan will be discussed by the Prime Minister’s high level committee on manufacturing (HLCM).

According to experts, Indian textile industry has not been able to compete with countries like China as most of its textile units are in the small sector. These textile parks are expected to make the Indian industry competitive vis-à-vis other nations. “The problems of economies of scale can be dealt with by these textile parks, which would also enhance our competitiveness,” NMCC member secretary V Govindarajan told ET.

Under SITP, the textile ministry provides infrastructure facilities such as roads, electricity supply — including captive power plants— and telecom lines to firms willing to set up textile units.


“The government has approved the construction of 26 textile parks. Four more projects will be approved shortly and we would try to raise the total number to 50,” textile minister Shankersinh Vaghela said.

Apart from making the industry cost competitive, these parks are expected to enhance manufacturing capacity of the Indian textile sector. “SITPs are being built to boost manufacturing by textile companies. These parks would also help in enhancing exports,“ said D K Nair, secretary general, Confederation of Indian Textile Industry.

The textile ministry, meanwhile, has also sought SEZ-like benefits for SITPs and a full SEZ status for four out of the 26 parks. SEZ status means textile firms will get all the tax benefits available under the SEZ Act such as tax holiday for 15 years. This demand is expected to be part of the textile ministry’s Budget recommendations.