Rs. 3000 crore plan to develop textile infrastructure

by T.Ramakrishnan
23 October 2006

Formulated in October 2005, SITP is a combination of two old schemes

# Improvement of facilities in Kancheepuram, Radhapuram
# Apparel park being developed at Irungattukottai

CHENNAI: An ambitious programme to develop infrastructure for the textiles sector, aimed at attracting investment of Rs. 3,000 crore, is under way in the State.

The Scheme of Integrated Textile Parks (SITP) envisages setting up of two apparel parks for exports, three hi-tech weaving parks, five hi-tech parks for infrastructure development and two processing parks.

Improvement of infrastructure in the traditional textile centres of Kancheepuram and Radhapuram is also part of the programme.

It is estimated that the parks will provide direct employment to about 35,000 people, and when fully operational, they are likely to generate a turnover of Rs. 7,000 crore per annum. A senior official of the Textiles department says that the proposed parks will be fully functional in a couple of years.

Formulated in October 2005, the SITP is a combination of two old schemes — Apparel Parks for Export Scheme (APES) and Textile Centre Infrastructure Development Scheme.

One major difference between the previous schemes and the SITP is that in the case of the latter, it is the Centre that provides the grant, 40 per cent of the project cost or Rs. 40 crore, with the States not required to contribute anything. The balance will come from entrepreneurs.

One apparel park has been established at Tirupur with 60 units, and another is being developed at Irungattukottai, about 40 km from Chennai. A few units have already started functioning here. Some 30 more units are planned.

The Irungattukottai park is coming up at the industrial complex of the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), which has leased land to nearly 30 companies, as well providing facilities such as street lights, water supply and sewerage. An official of the SIPCOT said that thanks to the Centre’s assistance, the land value works out to be, on an average, 25 per cent less than what it would have otherwise.

He was hopeful that the park will be commissioned in a year. The proposals for the Tirupur and Irungattukottai parks were originally sanctioned under the APES.

Hi-tech parks

In addition to the above, three hi-tech parks for infrastructure development at Erode, Kumarapalayam and Chengapalli (in Erode district) have been sanctioned under the SITP, at a total cost of Rs. 230 crore.

Two more parks

The State Government has proposed two more Madurai and Karur to be included in the SITP during the 10th Five Year Plan period.

The processing parks are proposed to be set up in Cuddalore and Perunthurai at an investment of Rs. 300 crore each. The Perunthurai park will also come up at the SIPCOT industrial complex.

The hi-tech weaving parks will come up in Kumarapalayam, Andipatti and Palladam, and the total estimated cost is about Rs 328 crore.

While work is progressing on schedule in Kumarapalayam and Palladam, issues concerning the composition of management of the special purpose vehicle for Andipatti have not been sorted out, according to official sources.

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Rs. 3000 crore plan to develop textile infrastructure
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