In a move to promote Textile industry, the Cabinet Committee on Economic Affairs (CCEA) Thursday approved to start implementation and issuing financial sanction to the 21 integrated textile parks sanctioned in the 11th Five-Year Plan.
It also gave its approval to carry over the committed liability beyond Rs.200 crore amounting to Rs.819 crore into the 12th Five-Year 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.
--With IANS Inputs--
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