Cabinet approves 21 new textile parks
The government Thursday approved the release of funds for the establishment of 21 integrated textile parks sanctioned in the 11th Five Year Plan.
The cabinet committee on economic affairs (CCEA), in a meeting held here, also committed the government to providing for liability beyond Rs.200 crore.
In October 2010, the CCEA had approved a proposal for setting up additional 21 integrated textile parks utilising the Rs.200 crore left in the 11th plan.
"The process of (fund) releases took longer than anticipated and therefore funds available in the 11th plan could not be utilised," the CCEA said in a statement.
According to the statement, the total liability will amount to Rs.819 crore which will extend into the 12th Plan period for the amendment of the financial approval granted by the CCEA in October 2010.
"CCEA further approved the adoption of amendments in guidelines of the scheme to improve implementation," the statement said.
The scheme of integrated textile parks has been successful in attracting private sector investment, employment generation and creation of need and product based infrastructure for the textile industry.
"With the increasing costs of production in the established clusters and highlighted emphasis on environmental compliances, there is growing need for establishment of such green field textile parks," the statement added.