The Hindu Business Line : Merger of 2 textile infrastructure schemes on cards

THE Ministry of Textiles is keen to merge two existing infrastructure development schemes viz., Textile Centres Infrastructure Development Scheme (TCIDS) and Apparel Parks for Export (APE) Scheme to infuse a sense of synergy for the overall development of production amenities in the textile industry.

Highly placed sources in the Government told Business Line here that the Union Textile Minister, Mr Shankersinh Vaghela, is "very keen on pushing the new scheme" particularly in the wake of the post-quota regime in global trade in textiles and clothing, which demands increased volume of output from the domestic industry.

The sources said that the Ministry of Textiles has approached Infrastructure Leasing and Financial Services (IL&FS) to act as a nodal agency to arrange development of 20 to 25 identified clusters across the country where it could organise textile units — weaving, processing and garmenting— to produce world-class material at optimal production level. Already, the Tirupur cluster is known for its knitwear exports. Clusters such as Ludhiana, Surat and other important textile-centric cities are cropping up to provide a one-shop service to trade and industry not only for domestic consumption but also for exports.

Sources said that the Ministry of Textiles would extend Rs 600 crore, in the next three years, to identified clusters by way of seed capital for development of infrastructure facilities. These 25 clusters would each have a seed capital ranging from Rs 25 crore to a maximum of Rs 40 crore and on completion would be capable of generating employment opportunities for about 10,000 people. Sources said that the scheme would be purely "need-based" and it would not be put up in places where the chances for associated amenities are absent or extremely difficult to procure.

The need for a merger of the two extant schemes was felt after a mid-course review found them making tardy progress. Moreover, the distinction between the two schemes appears to be redundant especially when the primary objective is to strengthen the export capability by offering a salutary infrastructural base to the industry, the sources said.

The funds to be provided for the merged scheme would cover creation of infrastructure facilities such as common effluent treatment facilities, provision of testing facilities, strengthening of power supply, establishment of design centres and improvement of roads, drainage facilities. The clusters would also give the major buyers abroad a single stop market in the country for meeting all labour/environment standards, boost investments in the sector and develop domestic brand.

Meanwhile, the Apparel Export Promotion Council (AEPC) under its Apparel Training and Design Centres (ATDS) scheme held a meeting here with the principals/in-charges of the ATDCs of northern India, wherein the Secretary-General of AEPC, Mr K.K. Jalan, underscored the need in the apparel industry for trained sewing machine operators. There is also a serious shortage of skilled tailors, particularly in the garment-manufacturing sector.

The ATDCs, set up in a dozen places in the country, accord trained manpower in the field of pattern making/cutting techniques, practical supervision and quality control techniques with a view to enabling the readymade garment industry attain maximum productivity in the global arena.

Three more ATDCs at Surat, Kanpur and Orissa would be functional from January-July 2006, AEPC officials said here.

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