Scheme for Integrated Textile Parks

News:Union Minister of Textiles has informed Lok Sabha about the scheme for Integrated Textile Parks.

Facts:

About Scheme for Integrated Textile Parks:

• The Scheme for Integrated Textile Parks(SITP) has been launched in 2005.
• The objective of the SITP is to provide the industry with world class state of the art infrastructure facilities for setting up their textile units.
• The scheme is a demand driven scheme in which the prospective entrepreneurs can send their proposals to the Government.
• The scheme would facilitate textile units to meet international environmental and social standards.
• It targets industrial clusters/locations with high growth potential which require strategic interventions by way of providing world-class infrastructure support.
• The scheme was launched by merging two schemes namely the Apparel Parks for Exports Scheme(APES) and the Textiles Centre Infrastructure Development Scheme(TCIDS).

Funding of the scheme:

• The total project cost shall be funded through a mix of Equity from the Ministry of Textiles, State Government, State Industrial Development Corporation, Industry and Loan from Banks or Financial Institutions.
• The Government of India’s(GOI) support under the Scheme by way of Grant or Equity will be limited to 40% of the project cost subject to a ceiling of Rs.40 crore.
• The combined equity stake of State Governments or Corporation if any, should not exceed 49%.
• However,Government of India’s grant is up to 90% of the project cost for the first two projects (each) in the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand and Jammu & Kashmir with ceiling limit of Rs 40 crore for each textile park.