Research/ Review Paper | Textile Articles

Reweaving the fabric of Vidarbha’s textile industry

Published: June 24, 2018
Author: TEXTILE VALUE CHAIN

The two textile parks in Amravati and Hinganghat have heralded prosperity to those involved and the growth is here to stay.

The twelfth five-year plan by the Government of India brought much joy to the textile industry by introducing the Scheme for Integrated Textile Parks. This translates into triggered textile growth across the country, especially in cotton growing region like ours.

The Scheme for Integrated Textile Parks (SITP) was launched in 2005 to provide the industry with state of the art world-class infrastructure facilities for setting up their textile units. The scheme would facilitate textile units to meet international environmental and social standards.

The park scheme is being promoted by Ministry of Textiles in line with Prime Minister Mr Narendra Modi’s scheme for integrated and cluster approach modeled on lines with China. Around 20 parks have been approved under the new scheme, with around four in the state of Maharashtra. This scheme has recently been modified to ensure strict compliance to project execution and to promote new investments into textiles by first time entrepreneurs. The benefit of this model being short lead time in setting up units, with common buildings and utilities being set up by the SPV, for efficient use.

SITP would create new parks of international standards at potential growth centres. This scheme envisages engaging a panel of professional agencies for project identification and execution. Each Integrated Textile Park (ITP) under the scheme would normally have 50 units. The number of entrepreneurs and the resultant investments in each ITP could vary from project to project. However, aggregate investment in land, factory buildings and Plant & Machinery by the entrepreneurs in a Park shall be at-least twice the cost of common infrastructure proposed for the Park.

Units and processes functional at Hinganghat ITP

GinningYarn, twisting and doubling, Spinning, Knitting, Technical Textile, Weaving (48 looms),

Processing, Garmenting, Fibre and Yarn Dyeing

Project Rationale:

Maharashtra is the growing textile region in the country with prime focus in skill development in textile sector. The State has prominent presence in spinning, technical textile and garmenting segment.

The Park envisages an integrated facility for about 11 units along with warping and sizing.

It has had a long history in textiles and Mumbai was the original home of India’s textile mills. Sholapur, Ichalkaranji, Malegaon and Bhiwandi are some of the cities known for the textile industry today.

Hinganghat was historically a centre of the Indian cotton trade.

The Entrepreneurs in this region have aggressive intention to upgrade the technology of spinning, ginning, technical textile and garmenting with support technologies. By using skilled force to integrate the forward link in the textile value chain, a group of entrepreneurs, having long standing experience in the textile sector, have come forward to implement an integrated textile manufacturing complex with support facilities and infrastructure with international standards.

Project Objectives:

To establish an integrated textile park at Hinganghat, Wardha District in Maharashtra State with state-of-the-art manufacturing facilities for Spinning, Ginning, Technical Textile, Yarn twisting and doubling, Knitting, Garmenting and Fibre, and Yarn Dyeing for domestic and export markets.

Nature of Entrepreneurs:

All the promoters of the Park belong to families who have been engaged in spinning and weaving for decades. They have established fragmented small factories for spinning of yarn and weaving of fabrics and have business links all over the country for marketing. The entrepreneurs have to set up modern spinning and weaving units with the required backward linkages and forward integration into garmenting units. Except traditional textile business families, entrepreneurs interested in foraying into the textile business are welcome to setup their units at the equipped and convenient textile parks.

Operational and Financial Assessment of the Entrepreneurs:

A detailed operational and financial assessment of the entrepreneurs has been carried out with a view to ascertaining their textile/other business experience as well as their financial strength.

The promoters are aggressive entrepreneurs and existing players in the textile industry and have sufficient experience of running large scale businesses. All the promoters/entrepreneurs have the financial rescources to invest in the project.

Why operate from ITP?

Get access to reasonable value of land, common infrastructure and common utilities

Plug and play model for investment with minimum starting time for new units

Common infrastructure/utilities for roads, drainage, water supply, electricity, ETP, STP, workers and staff colony, warehousing facility etc.

Reduced capital requirement ranging from 50% to 75% owing to availability of required common facilities and infrastructure

45-70% capital subsidy on the investment depending upon the project

Power cost to be approximately INR 4.5 or less

All government compliance and liasoning like pollution, boiler, labour, factory inspector, electrical etc available in-house

SGST refund in the range of 60%-80%

Advantage of FSI= 1.00 for all buildings

Assistance for banking facilities, recruitment, training and development, quality assurance, marketing etc.

Reimbursement on training for workers up to INR 10,000 per worker along with dedicated training facility.

Access to common infrastructure like effluent treatment plant, telecom and IT Infra, sewage treatment, research labs, staff quarters, storage godowns and administration

Going the Cluster Way

The current government is advocating the cluster approach to industrial development and regional growth. On this backdrop, the textile park will prove to be instrumental in bringing all of textile industries together and create an influential establishment.

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