Textile ministry to approve 25 SITP projects in Gujarat by March 2011

The union ministry of textiles (MoT) will approve 25 more projects under the Scheme of Integrated Textile Parks (SITP) by the end of this fiscal, a top official said.

“Out of the 40 projects approved under the SITP, 25 are operational across the country. All the seven textile parks in Gujarat are functioning successfully,” joint secretary V Shrinivas said during a road show organised by the MoT to promote the extension of the SITP.

“We have received 32 more proposals, including two from Gujarat, for setting up textile parks under SITP. We have a provision for approval of 25 projects by the end of March 2011,” he said adding the first installment of the grant for the new approved projects would also be released before March 2011.

The MoT has till date approved 40 projects costing Rs4133.09 crore and sanctioned grant for it under SITP of Rs1419.69, Shrinivas said. He said that for seven textile parks on Gujarat Rs801 crore was sanctioned as grant by the Ministry, out of which Rs232 crore have been utilised.

“Textile parks under SITP in Gujarat have been the most successful and have shown tremendous potential for growth,” Shrinivas added. Under the SITP the central government provides one-time financial assistance of 40% of project cost with upper limit of Rs 40 crore to each park.

All sub-sectors of textile industries such as ginning, spinning, texturizing, weaving, knitting, processing, garmenting and related ancillaries are eligible to avail benefits under SITP.

Minister of state for textile Panabaaka Laxmi who was chief guest during the road show here said that out of the 40 projects approved, those which are incomplete would become operational next year.

“On full completion of the SITP an investment of over Rs 15,000 crore was expected in the textile parks which is estimated to provide employment to over five lakh people,” Laxmi told members of the textile industry.

She also asked the front runners of the textile industry to come forward and take advantage of the SITP, which is aimed at establishing world class infrastructure for the textile industry, give access to newer markets and create new jobs.

The minister when asked about the subsidy under the TUF (technology upgradation Fund) to textile industry, which has been stopped, said that the facility would begin soon as the matter is pending for approval with the finance ministry.