By Sapna Dogra Singh
New Delhi December 07, 2008
Lack of an apex body, along with the absence of time-bound
deadlines, are being cited as reasons behind the poor implementation
of the scheme for integrated textile parks (SITPs), which
is the textile ministry's flagship scheme, according to industry
The objective of this scheme launched in 2005 was to create
jobs and world-class infrastructure. However, so far, out
of the 40 sanctioned parks, just four have become operational.
"It is a grand plan but actual execution is very slow,"
said Devangshu Dutta, chief executive officer of Third Eyesight,
a consultancy firm which has worked with some of India's leading
textile companies. There are multiple stakeholders, including
the central government, state governments, district authorities
and several companies. "Bringing them together is a difficult
job," said Dutta.
Under the SITPs, the government provides up to 40 per cent
of the cost of setting up a textile park with a ceiling of
Rs 40 crore. Till now the ministry has contributed Rs 450
crore. The industry has pitched in with nearly double this
amount. The combined investment is expected to touch Rs 2,000
crore by 2009-end.
The Parliamentary Standing Committee on labour has also made
similar observations in September. While ruing the slow pace
in the progress of SITPs, it has recommended that a time-bound
action plan should be drawn up to ensure that the sanctioned
textile parks become fully operational as any delay in this
regard may not only involve the cost overrun but could also
result in weaning the entrepreneurs away from scheme.
According to a senior textile ministry official, the reasons
for delays are local issues which involve land deals, pollution
and environment clearances in case of processing parks and
sometimes there's conflict amongst the entrepreneurs, which
could result in the cancellation of the park.
The four parks, which have become operational are —
Palladam HiTech Weaving Park at Palladam in Tamil Nadu, Brandix
India Apparel City at Vishakhapatnam in Andhra Pradesh, Pochampally
Handloom Park at Pochampally in Andhra Pradesh and Gujarat
Eco Textile Park, Surat, Gujarat.
Most of the parks are progressing smoothly and by year end
about five to seven more parks would become operational, informed
the ministry official and added that the progress has also
slowed down now because of the financial constraints that
people are facing in view of the current economic slowdown,
added the official.
Incidentally, an inter-ministerial Project Approval Committee
(PAC) for SITPs is meeting in the third week of December to
review the progress of the textile parks and also to take
a call on cancellation of some of the parks. At least three
projects are likely to be cancelled and be given to other
interested parties, said the official.
The committee meets on a quarterly basis.