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New Delhi : The Government is implementing Scheme for Integrated Textile Park (SITP), which is demand driven, and provides support for creation of world-class infrastructure facilities for setting up of textile units with a Government of India grant up to 40% of the project cost.
The Government of India grant are up to 90% of the project cost for first two projects (each) in the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand, and Union Territory of Jammu & Kashmir and Union Territory of Ladakh; with ceiling limit of Rs 40 crore for each textile park.
The Special Purpose Vehicle (SPV) formed by the representatives of local industry, Financial Institutions, State Industrial and Infrastructural Corporations and other agencies of State and Central Governments registered as a Corporate Body under Companies Act would submit their proposal directly to the Ministry for consideration. SITP is thus a demand driven scheme. No representation is pending from Textile ‘Industry’ Federation from any State for development of textile industry and textile parks in their State. Further, the proposal to set up Mega Textile Parks by the Ministry of Textiles is at the stage of discussion.
The programmes initiated by Government to boost the textile industry and the incentives given for textile workers include :-
(i) Knitting and Knitwear Sector: In order to boost production in knitting and knitwear clusters, the Government has launched a separate scheme for development of Knitting and Knitwear Sector to boost production in knitting and knitwear cluster at Ludhiana, Kolkata, and Tirupur.
(ii) Government is implementing Amended Technology Up-gradation Fund Scheme (ATUFS) for technology up-gradation of the textile industry to incentivise production with an outlay of Rs 17,822 crore during 2016-2022. It is expected to attract investment of Rs.1 lakh crore and generate 35.62 lakh employment in the textile sector by 2022.
(iii) The Government had launched a special package of Rs 6,000 crore in 2016 to boost investment, employment and exports in the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; (ii) production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
(iv) Scheme for Integrated Textile Park (SITP): Government of India grant with a ceiling limit of Rs 40 crore for setting up textiles parks for creation of world class infrastructure facilities for setting up of textile units.
(vi) National Handicrafts Development Programme (NHDP) and Comprehensive Handicraft Cluster Development Schemes aims at holistic development of handicrafts clusters through integrated approach by providing support on design, technology up-gradation, infrastructure development, market support etc.
This information was given in a written reply by Union Textiles Minister Smriti Zubin Irani in Rajya Sabha on September 17, 2020, according to a PIB release.