Though the Indian textile industry has its inherent advantages, infrastructure bottlenecks is one of the prime areas of concern for the weaving and processing sectors 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 create new textile parks of international standard at potential 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 development, including land building, roads, drainage, water supply, electricity, effluent treatment plant, training centre, testing, laboratory, canteen, workers hostel, recreation 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 facilities. The Tamil Nadu Government considered the proposal positively and sanctioned funds.
In a press release, Mr. S. Dinakaran, Chairman, Southern India Millsà 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 industry. 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 single 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 being promoted by SIMA is the dedicated textile processing park with marine discharge facility at Cuddalore.
Mr. Dinakaran has appealed to the Chief Minister to nominate the Director of Handlooms as the single window facilitator for getting all clearances from the various State and Central Government authorities to expedite 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 investments, thereby giving permanent solution for the perennial pollution problem in the State.