The Government has approved 21 new Textile Parks under the Scheme for Integrated Textiles Parks (SITP), involving a total project cost of ₹2,100 crore. These projects are scheduled for implementation within a 36-month timeframe, strengthening infrastructure and investment momentum in the Indian textiles sector.
The approvals were granted by Anand Sharma, Minister for Commerce, Industry and Textiles, in his capacity as Chairman of the Project Approval Committee under SITP.
Approval Process and Policy Framework
The Project Approval Committee considered recommendations of the Inter-Ministerial Project Scrutiny Committee, which evaluated 55 proposals received from across the country. After detailed scrutiny, 21 proposals were sanctioned based on objective parameters, including:
- Project cost and financial viability
- Availability and size of land
- Net worth and capacity of promoters
- Employment generation potential
- Strength of the proposed value chain
The SITP framework focuses on greenfield investments in the textiles sector through a public-private partnership (PPP) model, with the objective of creating world-class common infrastructure for textile manufacturing and processing.
Investment Leverage and Employment Impact
According to the Minister, the sanctioned textile parks are expected to:
- Leverage additional private investment exceeding ₹9,000 crore
- Generate employment for around 4 lakh textile workers
- Enhance value addition and competitiveness across textile value chains
Under the scheme, the Government will support common infrastructure development with a subsidy of up to ₹40 crore per textile park.
Linkage With Technology Upgradation Funds Scheme (TUFS)
The Government has emphasised the complementary role of the Technology Upgradation Funds Scheme (TUFS) in enabling industry investments. Key policy support includes:
- Enhancement of TUFS allocation from ₹8,000 crore to ₹15,404 crore under the 11th Five Year Plan
- Separate allocation of ₹400 crore under SITP in April 2011 for sanctioning new textile parks
While SITP supports shared infrastructure, TUFS facilitates modernisation and installation of plant and machinery, improving productivity and global competitiveness.
State-Wise Distribution of Approved Textile Parks
To promote balanced regional development, the Government ensured geographic spread across developed, emerging, and special-category regions.
Textile Parks sanctioned by State:
- Maharashtra – 6
- Rajasthan – 4
- Tamil Nadu – 2
- Andhra Pradesh – 2
- Uttar Pradesh – 1
- Gujarat – 1
- Tripura – 1
- Himachal Pradesh – 1
- Karnataka – 1
- Jammu & Kashmir – 1
- West Bengal – 1
Special emphasis was placed on the North-Eastern States, regions where the textiles industry is at a nascent stage, and on cooperative and handloom sectors.
Product Segments Covered
The approved textile parks will support a diverse product mix, including:
- Apparel and garment manufacturing parks
- Hosiery parks
- Silk parks
- Textile processing parks
- Technical textiles, including medical textiles
- Carpet parks
- Power loom parks
The policy focus is on value addition through aggregation, enabling optimal utilisation of India’s surplus in cotton and cotton yarn, while expanding exports and labour-intensive manufacturing.
Implementation and Monitoring Mechanism
Lead Investors heading the Special Purpose Vehicles (SPVs) for each park, along with Project Management Consultant (PMC) firms, will be invited to enter into Memoranda of Understanding (MoUs) with the Government.
The MoUs incorporate provisions to:
- Ensure timely project execution
- Minimise cost overruns and implementation delays
- Strengthen accountability of project stakeholders
Performance of SITP Under the 11th Five Year Plan
The SITP has shown strong outcomes during the 11th Five Year Plan:
- 40 textile parks sanctioned
- 24 parks already operational
- ₹18,880 crore private investment attracted
- Government subsidy of ₹1,420 crore deployed
Encouraged by this performance and continued industry demand, the Textiles Ministry has indicated that it will seek a higher budgetary allocation under the 12th Five Year Plan.
Conclusion
The approval of 21 new Textile Parks under SITP marks a significant policy push toward infrastructure-led growth in the textiles sector. By combining public support for common facilities with private investment and technology upgradation, the initiative aims to enhance employment, exports, and regional industrial development across India. (Source: PIB PR 76869)