Ministry to study impact of textile park scheme

Govt wants to gauge the scheme’s effectiveness for further funding.

The textiles ministry has appointed a consultant to evaluate if the textile parks set up under its flagship scheme have achieved their objectives of creating jobs and world-class infrastructure.

Under the scheme for integrated textile parks (SITP), 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 government is keen to evaluate the effectiveness of the scheme before sanctioning more funds.

“We have been receiving requests for more projects. However, we want to see if the scheme needs more inputs as it is over three years since it was launched,” said a senior ministry official.

The consultant would submit the report by the end of December, said the official. He declined to give the name of the consultant.

The study will assess if the main aim of the scheme, to provide world-class infrastructure, has been met. It will also look at the techno-commercial impact in terms of jobs generated, export earnings, investments, induction of new technology, attracting foreign direct investment and enabling vertical integration. The official added it would also include recommendations for changes to make the scheme more attractive. There are 40 textile parks in various stages of development.

The projects identified for the study are: Palladam HiTech Weaving Park, Palladam, Tamil Nadu, Brandix India Apparel City, Vishakhapatnam, Andhra Pradesh, Pochampally Handloom Park, Pochampally, Andhra Pradesh, and Gujarat Eco Textile Park, Surat, Gujarat.