The Cabinet Committee
on Economic Affairs today approved to start implementation and issuing
financial sanction to the 21 parks sanctioned in the 11th Plan and to
carry over the committed liability beyond Rs.200 crore amounting to
Rs.819 crore into the 12th Plan, in amendment of the approval granted by
the CCEA in October, 2010.
The CCEA further approved the adoption of amendments in guidelines of
the scheme to improve implementation.
The scheme of Integrated Textile Parks has been successful in terms of
leveraging private sector investment, employment generation and creation
of need-based and product based world class state of the art
infrastructure for the industry. With the increasing costs of production
in the established clusters and highlighted emphasis on environmental
compliances, there is a growing need for establishment of such green
field textile parks.
In October 2010, the CCEA approved a proposal for “Sanction of
additional Parks under SITP to utilize the balance Rs.200 crore in the
11th Plan and number of projects to be limited in such a way that
committed liability of the new Parks does not exceed Rs.200 crore in the
12th Plan”. In accordance with this decision, 21 parks were sanctioned.
The process of releases took longer than anticipated and therefore funds
available in the 11th Plan could not be utilized.