New Delhi:(Page3 News Network)-The Cabinet Committee on Economic Affairs today approved to start implementation and issuing financial sanction to the 21 parks sanctioned in the 11th Plan and to carry over the committed liability beyond Rs.200 crore amounting to Rs.819 crore into the 12th Plan, in amendment of the approval granted by the CCEA in October, 2010. The CCEA further approved the adoption of amendments in guidelines of the scheme to improve implementation.
Background:
The scheme of Integrated Textile Parks has been successful in terms of leveraging private sector investment, employment generation and creation of need-based and product based world class state of the art infrastructure for the industry. With the increasing costs of production in the established clusters and highlighted emphasis on environmental compliances, there is a growing need for establishment of such green field textile parks.
In October 2010, the CCEA approved a proposal for “Sanction of additional Parks under SITP to utilize the balance Rs.200 crore in the 11th Plan and number of projects to be limited in such a way that committed liability of the new Parks does not exceed Rs.200 crore in the 12th Plan”. In accordance with this decision, 21 parks were sanctioned.
The process of releases took longer than anticipated and therefore funds available in the 11th Plan could not be utilized.
