Textile Parks Will Attract Rs 30,000 Crore Investment In India

Industry news

Textile Parks Will Attract Rs 30,000 Crore Investment In India

Textile parks set up under the Scheme for Integrated Textile Parks (SITP) will attract investment of Rs 30,000 crore and will generate employment for nearly 1.1 million people in India, said Santosh Gangwar, Union Minister of State for Textile, at a national workshop for textiles in Surat.

A two-day workshop was organised by the Ministry of Textiles in Surat to showcase the textile parks' development. SITP aims to provide infrastructure support, which is critical for making textile manufacturing industry globally competitive. Gangwar said, "Once the park is operational, it is expected to attract investment of Rs 30,000 crore and generate employment for 1.1 million people. Government would set up 8 to 10 more parks in the 12th five year plan. These parks will be catalytic in realising 'Make in India' vision of the Prime Minister."

He announced approval of 20 new parks during the last seven months, bringing the total number of parks approved under the scheme to 70, spread across 16 states, with a total cost of Rs 7,100 crore, of which Rs 2,586 crore is grant assistance from the ministry. Out of the 70 parks, 30 parks are functional - majority of which are in Gujarat, Maharashtra and Tamil Nadu.

He informed that in the last six years, around eight textile parks have become operational, majority of which are located in and around Surat, and that the yearly production of yarn, fabrics and garments is pegged at Rs 3,364 crore. These textile parks have generated direct and indirect employment opportunities for more than 21,000 people. The Gujarat Eco Textile Park Limited at Palsana, some 20 kilometers away from the city, is on the top with the production value of fabrics, shirting, sarees, denim synthetic textile at is 33 units pegged at Rs 1,396 crore per annum.

Eight textile parks are operational in Gujarat and five new parks have been sanctioned by the Ministry of Textiles. In Surat alone, out of the nine parks sanctioned by the ministry, five textile parks are operational with annual production of fabrics, yarn, grey fabrics, knitted fabrics, garments, etc. pegged at Rs 2,768 crore. The other two textile parks located at Mundra and Kheda have annual production worth Rs 600 crore. S.K. Panda, secretary, Ministry of Textiles said, "The textile entrepreneurs in Surat have done exceedingly well by successfully setting up the textile parks under SITP. We have brought the representatives of other textile parks from across the country to witness the growth in the city's textile parks and replicate the same model in their own states".

According to Panda, the textiles ministry has sanctioned 20 more textile parks under the SITP, with focus on the North-Eastern states like Manipur, Meghalaya and Assam. The ministry provides a grant to the extent of 40% of the cost of basic infrastructure, common facilities and factory buildings subject to a ceiling of Rs 40 crore for each park. The balance project cost is to be mobilised by the Special Purpose Vehicle (SPV) through equity and debt funding.