Textile Ministry plans 5-year extension for funding scheme for clean tech

Amiti Sen | | Updated on: Aug 21, 2021

In India, the textile sector is one of the mainstays of the economy accounting for 11.8 per cent of total goods exports in 2019-20. | Photo Credit: NAGARA GOPAL

With the textiles sector identified as one of the most water-intensive sectors globally, there is pressure on industry to adopt environment-friendly practices

To help the textile industry gain greater global competitiveness by following environment-friendly processes and standards, the Centre has plans of extending by another five years an ambitious scheme for funding waste water management projects and R&D for cleaner technologies.

“A draft memorandum for the Expenditure Finance Committee for continuation of the Integrated Processing Development Scheme (IPDS) for next five years has been circulated recently to all Ministries and Departments seeking their comments,” a person close to the development told BusinessLine .

The IPDS was launched during the 12th Five Year Plan (2012) with a total cost of ₹500 crore to address environmental issues faced by the textile processing units such as pollution caused by the discharge of untreated effluents. It has already been extended once for three years in December 2017.

“The government wants to help as many textile processing units as possible in meeting environmental standards by adopting suitable technology such as marine, riverine and Zero Liquid Discharge (ZLD),” the source said.

Eight proposals

Eight proposals have already been given an in-principle approval by the Ministry under the scheme and ₹88.82 crore has been released to the sanctioned projects, according to the Textiles Ministry Annual Report 2020-21. These include up-gradation of existing CETP to ZLD in four projects in Rajasthan and setting up of four new ZLD plants, one each in Rajasthan and Gujarat and two in Tamil Nadu. “The sanctioned projects will be continued during the five-year period of extension, between 2021 and 2026, and some new projects may also be approved,” the source said.

It is important for the IPDS to continue as the textile industry is one of the most water-intensive sectors in the world, and, therefore, under growing pressure globally to adopt environment-friendly practices to lower pollution and water wastage.

Processing clusters

In India, the textile sector is one of the mainstays of the economy accounting for 11.8 per cent of total goods exports in 2019-20. The country has a share of 5 per cent of the global trade in textiles and apparel. The sector provides direct employment of over 45 million people and is a source of livelihood for over 100 million people indirectly, according to the Textiles Ministry.

The scheme seeks to support new CETPs in existing processing clusters and new processing parks specifically in the area of water and waste water management as also to promote research and development for cleaner technologies in the processing sector.

Once comments on the draft EFC note are received, the suggested changes may be incorporated and then the final note sent for EFC approval. On receipt of all requisite approvals, the extended scheme will be notified in the Gazette of India.

Per the funding pattern existing at present, the Centre bears 50 per cent of the project cost, the State bears 25 per cent, the beneficiary bears 15 per cent while the remaining 10 per cent is provided as bank loans. The government grant (50 per cent of the total project cost) is to be released in four instalments of 15:35:30:20.

Published on August 21, 2021
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