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
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