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A rejuvenated textile industry is
geared to meet the global challenge.
26 parks have been approved so far
out of 30 sanctioned under the
Scheme for Integrated Textiles Parks
(SITP). The provision of these parks
has been increased from Rs. 189
Crore in 2006-07 to Rs. 425 Crore in
2007-08
Government of India has launched
“Integrated Textile Parks ” scheme.
SITP would create new textile parks
of international standards at
potential growth centers by 2007-08.
GUIDELINES OF THE SCHEME FOR
INTEGRATED TEXTILE PARKS : |
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1. OBJECTIVES OF THE SCHEME: |
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The “Scheme for Integrated Textile
Parks (SITP)” is launched by merging
the existing two schemes namely, the
Scheme for Apparel Parks for Exports
(APE) and the Textile Center
Infrastructure Development Scheme (TCIDS)..
One of the main purposes of
introducing the SITP is to provide
the industry with world-class
infrastructure facilities for
setting up their textile units. The
scheme would facilitate textile
units to meet international
environmental and social standards.
SITP would create new textile parks
of international standards at
potential growth centers by 2007-08.
This scheme is based on
Public-Private Partnership (PPP) and
envisages engaging of a professional
agency for project execution.
Each Integrated Textile Park (ITP)
would normally have at least 50
units with a total estimated
investment of Rs. 750 crore; and on
average, provide employment to
20,000 persons. The scheme would
therefore facilitate creation of 5
lakh new jobs. An amount of Rs. 625
crores would be provided by the
Government of India (GOI) for the
development of these 25 ITPs in a
two-year period between 2005-06 and
2006-07.
The ITPs may also be set up in the
Special Economic Zones (SEZs), in
which case the special provisions of
SEZs would be applicable for them.
In case these are set up outside
SEZs, proposal may be pursued with
the Ministry of Commerce & Industry
to declare the ITP as SEZ, if it is
so desired.
The Scheme is co-terminus with the
10 th Plan period. Its continuation
into 11 th Plan would be dependent
upon the success in completion of 25
projects in next two years |
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SCOPE OF THE SCHEME: |
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The scheme targets industrial
clusters/locations with high growth
potential, which require strategic
interventions by way of providing
world-class infrastructure support.
The project cost will cover common
infrastructure and buildings for
production/support activities,
depending on the needs of the ITP.
There will be flexibility in setting
up ITPs to suit the local
requirements |
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An ITP will have the following
components:
Group A - Land.
Group B – Common Infrastructure like
compound wall, roads, drainage,
water supply, electricity supply
including captive power plant,
effluent treatment,
telecommunication lines etc.
Group C – Buildings for common
facilities like testing laboratory,
design center, training center,
trade center/display center, ware
housing facility/ raw material
depot, crèche, canteen, workers
hostel, offices of service
providers, labour rest and
recreation facilities etc.
Group D – Factory buildings for
production purposes
Group E- Plant & machinery. |
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SCOPE OF THE SCHEME: |
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The items covered under each of the
above Groups are illustrative only,
and every ITP may be developed to
suit the specific production and
business requirements of members of
ITP.
The total Project Cost for the
purpose of this Scheme includes the
cost on account of components of ITP,
as listed under Groups A, B, C and D
above, provided the ownership of the
factory buildings vests with the SPV.
The SPV will, however, have the
option of seeking financial support
from Government of India for
components under Groups B and C
only, if factory buildings are
individually owned |
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IMPLEMENTATION STRUCTURE : |
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The Ministry of Textiles (MOT) would
implement the Scheme through Special
Purpose Vehicles (SPVs). Industry
Associations/Groups would be the
main promoters of the ITPs. The SPVs
shall have operational autonomy so
that they do not become surrogate
Public Sector Enterprises or be
controlled by Central/State
Governments.
MOT shall sign a Memorandum of
Understanding (MOU) with
Infrastructure Leasing & Financial
Services (ILF&S) or a similar
professional agency, which has
considerable experience and
expertise in the area of
infrastructure development, as
Project Management Consultant (PMC)
for implementing the Scheme
The PMC will be responsible for the
speedy implementation of the
Projects in a transparent and
professional manner so as to achieve
high degree of quality at a low cost
acceptable to the members of the SPV,
for which fee will be paid to the
PMC
PMC will report to MOT, which shall
directly supervise the
implementation of projects under the
superintendence and control of
Secretary (Textiles).
PMC will discharge the following
functions:
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Identifying the locations
for setting up the ITPs
based on a scientific
assessment of the |
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demand and potential of the
area |
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Facilitating formation of
SPV at each project level
with the participation of
local industry |
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Preparation of Project Plan
including the setting of
standards for
infrastructure. |
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Structure and appraise the
projects and submit the same
for consideration of Project
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Approval Committee (PAC).
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Assist the SPVs in selection
of agencies for preparation
of bid documents,
construction, |
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operation and maintenance of
the facilities in the
Project. |
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Assist the SPV in achieving
financial closure. |
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Monitor the implementation
and submit periodical
progress reports to the MOT. |
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To liaise with the State
Governments to resolve
state-related problems. |
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Ensure timely completion of
project(s) as fixed by the
PAC. |
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At each ITP, there would be a
separate SPV formed with the
representatives of local Industry,
Financial Institutions, State and
Central Government. SPV shall
invariably be a Corporate Body
registered under the Companies Act.
Any different structure for the SPV
requires the approval of the Project
Approval Committee.
These SPVs would be the focal points
for implementation of the Scheme,
playing the following role: |
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The SPV would conceptualize,
formulate, achieve financial
closure, implement and manage the |
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infrastructure. |
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The SPV would procure land, cost of
which could be built into the
project cost.After developing the |
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infrastructure, SPV would allocate
sites to Industry for setting up
units. |
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SPV would also facilitate securing
bank finance required for setting up
units in ITP. |
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SPV would be responsible for
maintaining the utilities and
infrastructure created for ITP by |
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collecting service and user charges. |
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The SPV has to be so structured as
to be self-sustaining with a
positive revenue stream. |
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SPV would appoint
contractors/consultants in a fair
and transparent manner. In order to
ensure |
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timely completion of the project,
SPV will obtain appropriate
performance guarantee from |
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consultants/contractors |
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The ongoing projects sanctioned
under the TCID/APE Schemes would be
given an option to switchover to the
proposed Scheme. All projects
sanctioned but not started before
31st July 2005 would be cancelled. |
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