Q-and-A

The Min­istry of Textiles has an­nounced that it is re­view­ing the Scheme for In­te­grated Tex­tile Parks (SITP) af­ter a re­port found that the scheme failed to achieve its ob­jec­tives and spe­cial pur­pose ve­hi­cles of the parks vi­o­lated norms. What is your view on

Apparel Online - - Mind Tree - R K Dalmia,

Ex-Chair­man TEXPROCIL/ Se­nior Pres­i­dent and

CFO, Cen­tury Textiles and In­dus­tries Lim­ited, Mum­bai

In­dian tex­tile in­dus­try needs tex­tile parks and it is in­deed com­mend­able that re­cently the Ma­ha­rash­tra Govern­ment plans to set up 9 such tex­tile parks. But I must say that our Govern­ments should pro­vide com­plete fa­cil­i­ties in these tex­tile parks. To make such parks suc­cess­ful, they have to fo­cus on it. Even cen­tre’s tex­tile min­istry and state tex­tile min­istries have to make sure that all the req­ui­site pro­vi­sions spe­cially re­lated to in­fra­struc­ture are avail­able in these parks fail­ing which the in­dus­try will not move there. How­ever, poli­cies re­lated to SITP need to be re­viewed with proper con­sul­ta­tion of the tex­tile in­dus­try.

Aloke Bhat­na­gar, Direc­tor, Next Gen Tex­tile Park, Pali

The prob­lem lies at three lev­els: the big­gest is­sue is the miss­ing co­ordina­tion be­tween the State and the Cen­tral Govern­ment as the Cen­tral Govern­ment ap­proves the pro­ject but all clear­ance has to be given by the State Govern­ment and im­ple­men­ta­tion also has to be as­sured by the State Govern­ment. The sec­ond is­sue is re­lated to in­te­gra­tion as the idea is to bring the en­tire sup­ply chain to one place but due to ge­o­graph­i­cal as­pects, In­dia has pock­ets for spe­cific seg­ments and prefers the same sys­tem rather than hav­ing in­te­grated fa­cil­ity at one place. Sim­i­larly, to bring the labour­ers for dif­fer­ent kinds of ac­tiv­i­ties to one place, is also an ar­du­ous task. So, rather than in­te­grated parks, sec­tor-spe­cific parks will per­form well.

Vi­jay Ku­mar Agar­wal, MD, Kis­hangarh Hi Tech Tex­tile Park Lim­ited, Kis­hangarh, (Ajmer)

Some poli­cies in this re­gard need to change on an ur­gent ba­sis. As of now, tex­tile parks can’t lease or sub­lease build­ings to the ac­tual fac­tory owner (in­di­vid­ual unit) as it re­mains the park’s prop­erty. So ac­tual fac­tory owner can’t take loan on it, can’t show it as a prop­erty in his books. Se­condly, as per the pol­icy, to get 40 per cent sub­sidy of Cen­tral Govern­ment, it is manda­tory to get the build­ing con­structed by a Govern­ment­nom­i­nated con­trac­tor (PMC) which is al­most 30 per cent costly as com­pared to nom­i­nated con­trac­tors. In our park, 6 units are not uti­lized in this sub­sidy as they pre­fer to con­struct their build­ing in their own way and through their own con­trac­tor. We have high­lighted these and al­lied is­sues to the Min­istry of Tex­tile re­cently and hope­fully will get some so­lu­tion too. I must say that the Ra­jasthan Govern­ment’s sup­port for these parks is less than that given by Ma­ha­rash­tra and few other states who are ac­tively sup­port­ing tex­tile parks’ de­vel­op­ment.

Arvind Arora, CEO, Taurus Tex, Delhi

The en­tire sup­port in­dus­try needs to be formed in clus­ter to sup­port each other. For ex­am­ple, Govern­ment does a good job in set­ting up an in­te­grated park but aware­ness of it is lim­ited to only a hand­ful of peo­ple and not the en­tire in­dus­try.

The al­ready es­tab­lished in­dus­tri­al­ists and new in­vestors seek land space to set up in­dus­try. How­ever, we have ob­served empty plots of land re­main­ing va­cant for years. If busi­ness en­vi­ron­ment is there and aware­ness ex­ists and the Govern­ment also sup­ports the cause to set up an in­dus­try, we are sure peo­ple will pre­fer to set up small fac­to­ries there. We have yet to see com­mon SMEs oc­cu­py­ing space in such in­dus­trial parks and prac­ti­cally, these SMEs de­fine the suc­cess of the gar­ment in­dus­try as they pro­vide valu­able ser­vices to the gar­ment sec­tor such as gar­ment print­ing, em­broi­dery, hand­i­work, se­quin work, em­boss­ing. Ac­ces­sories sup­pli­ers,

C&A agents, lo­gis­tics, and pack­ag­ing peo­ple are also in­cluded amongst these SMEs. As it is, the en­trepreneurs seek­ing 10 ma­chines to 500 ma­chines for set­ting up a stitch­ing unit, should be able to set up their units in these parks cre­ated by Govern­ment. This can be seen in the suc­cess sto­ries of Tirupur, Delhi-NCR, Lud­hi­ana (smaller scale), Mum­bai & out­skirts, Su­rat, etc. Hence, the in­dus­try can lift it­self if all these sup­port in­dus­tries are given an op­por­tu­nity to es­tab­lish their fa­cil­i­ties in the tex­tile parks at com­pet­i­tive land rates, al­low­ing them to even buy/hire/lease small plots of land to en­cour­age putting up their unit there. Multi-sto­ried build­ings can house sev­eral in­dus­tries in one go.

I sug­gest the ex­ist­ing poli­cies need to be re­viewed for the rea­son be­hind their fail­ures by a group of peo­ple which should com­prise of the SMEs in ma­jor­ity. The ex­ist­ing poli­cies are nowhere to be seen by a com­mon tex­tile per­son, ei­ther work­ing in a com­pany or run­ning a busi­ness. Their vis­i­bil­ity needs to be en­hanced. Ac­cess to peo­ple mak­ing these poli­cies need to be there, so that the

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