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The Textile Magazine
jANUARY 2012
SIMA
thanks CM for sanctioning
Rs. 9-crore grant for textile parks
policy initiatives
Though the Indian textile industry has its inherent ad-
vantages, infrastructure bottlenecks is one of the prime
areas of concern for the weaving and processing sec-
tors which are the weakest link in the entire textile value
chain. Therefore, the Government launched the Scheme
for Integrated Textile Parks (SITP) in July 2005 to cre-
ate new textile parks of international standard at poten-
tial growth centres.
The scheme had overwhelming response and attracted
investments in 30 parks in the 10th Five-Year Plan and
10 parks in the 11th. For the 12th Five-Year Plan, 21
parks have already been sanctioned.
The scheme provides 40 per cent grant, subject to a
maximum of Rs. 40 crores, for infrastructure develop-
ment, including land building, roads, drainage, water
supply, electricity, effluent treatment plant, training
centre, testing, laboratory, canteen, workers hostel, rec-
reation facilities, and marketing support system.
The Centre also encourages the State Governments to
give another 9 per cent, subject to a maximum of Rs. 9
crores, under the scheme to further strengthen the facili-
ties. The Tamil Nadu Government considered the pro-
posal positively and sanctioned funds.
In a press release, Mr. S. Dinakaran, Chairman,
Southern India Mills’ Association (SIMA), has thanked
the Tamil Nadu Chief Minister for sanctioning the State
subsidy from SITP in spite of the severe financial crunch
prevailing in the State, considering the urgent need for
sustenance of the competitiveness of the State textile in-
dustry. Though the State accounts for one-third of the
textile business and 47 per cent spinning capacity, it has
suffered a severe setback in the weaving and processing
sectors due to obsolete technology and pollution issues.
Mr. Dinakaran has stated that the State Government
subsidy would encourage consolidation and small &
medium powerlooms and processing units in the State
and go in for state-of-the-art technology with world
class infrastructure facilities. He has also welcomed
the nomination of the Director of Handlooms as the sin-
gle window facilitator for availing and monitoring the
scheme.
Out of 40 textile parks coming up in the country eight
are in Tamil Nadu, of which only one park which is be-
ing promoted by SIMA is the dedicated textile process-
ing park with marine discharge facility at Cuddalore.
Mr. Dinakaran has appealed to the Chief Minister to
nominate the Director of Handlooms as the single win-
dow facilitator for getting all clearances from the vari-
ous State and Central Government authorities to expe-
dite the process of implementing the park. It has taken
more than six years for SIMA to get all the clearances
to kick-start the park. The SIMA park would commence
commercial production in 18 months and provide direct
and indirect employment to 30,000 people in the State.
The SIMA chief has also pointed out that of the 21
parks recently sanctioned, only two are in Tamil Nadu.
He has appealed to the State Government to earmark
sufficient land along the coastal line and declare it as
dedicated zone for textile processing and attract invest-
ments, thereby giving permanent solution for the peren-
nial pollution problem in the State.
w
Mr. S. Dinakaran,
SIMA Chairman