Rs2,1000-crore capex on 21 new textiles parks cleared

The government has approved the setting up of 21 new textiles parks under the Integrated Textiles Parks scheme, involving total investments of Rs2,100 crore. The projects will be implemented over a period of 36 months, minister of commerce, industry and textiles Anand Sharma said today.

The project approval committee headed by Sharma accorded approval to the 21 projects on the recommendations of the inter-ministerial project scrutiny committee, which examined 55 proposals for new textiles parks.

The Integrated Textiles Parks scheme seeks green field investments in the textiles sector on a public-private partnership basis with the objective of setting up world class infrastructure for textiles industry.

"The new textiles parks would catalyse significant additional investments with industry utilising the benefits both under the scheme for Integrated Textiles Parks for development of common infrastructure; and under the Technology Upgradation Funds Scheme for installation of plant and machinery," Sharma said.

The government, meanwhile, has nearly doubled the allocation under TUFS from Rs8,000 crore to Rs15,404 crore under the 11th Plan. It has also allocated Rs400 crore under the SITP for new textiles parks in April 2011.

The new textiles parks are expected to leverage investment of over Rs9,000 crore and provide employment to 4,00,000 textiles workers. The government would also finance common infrastructure with a subsidy up to Rs40 crore per textiles park.