SITP Post Violation of Norms Being Reviewed

SITP Post Violation of Norms Being Reviewed

The textile ministry is reviewing the Scheme for Integrated Textile Parks (SITP) after a report found that it failed to achieve its objectives and special purpose vehicles of the parks violated norms as non-textiles units were operating from inside the parks. Also there are many loopholes in the scheme which needs to be rectified, according to a senior textiles ministry official.

The report by Wazir Advisors to the ministry has cited various reasons, including high rentals in some parks, changes in other government schemes or regulations, lack of marketing efforts, no special benefits available for investors in parks, poor accessibility and challenges for units in SEZ Parks, for the scheme failing to attain its objectives.

The report has recommended that a new scheme — Mega Textile Parks — be launched with parks having minimum land size of 1,000 acres, and infrastructure support in the form of readymade factory sheds, warehouse, incubation centres and testing labs, with express connectivity to seaports and airports.

The implementing agencies for the new scheme should be entrepreneurs-led SPV (special purpose vehicle), industry associations or state government either through their institutions or in PPP mode, the report on review of the SITP scheme said.

Textiles minister Smriti Irani last month had informed Parliament that the ministry was examining complaints against certain SPVs of textile parks sanctioned under the SITP for violation of guidelines.

She had said that show-cause notices to at least four SPVs had been issued for violation of norms. The ministry has also cancelled several projects after the SPVs were found flouting the SITP’s guidelines.

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