One of the most important events for the entire Indian textile industry – the annual conference of State Textiles’ Ministers – was recently held in New Delhi, wherein the entire Government machinery related to the Ministry, like Central and States’ Ministers, and senior officers discussed their agendas and put forward their states’ demands and issues. Unlike last year the media was not allowed to attend the event, yet Apparel Online was successful in collecting information from various sources. It is disappointing to note that as usual handloom and powerloom sectors, and textile parks are the top priorities for states and thrust is all about getting funds. In the report released at the event, highlighting status of last year’s demands and list of fresh demand, it can easily be noticed that the apparel industry is out of focus in most of the states’ demands. In some cases it was observed by the Textiles Ministry that though the states demanded certain concessions, they did not thereafter submit their proposal, even after one year. Many of the fresh demands are same as they were last year without even considering development of one year.
Karnataka, having a major apparel manufacturing hub like Bangalore, and Uttar Pradesh where Noida and some other hubs are known for garmenting, did not request for even a single thing pertaining to apparel/garment industry. In its two-page letter, Karnataka has not even mentioned the word ‘apparel’ anywhere. Same is the case with some other states also. Most of the migratory labour belongs to Bihar and on various platforms discussion are on to set up factories in this state, but Bihar does not seem active in this regard as its last year demands raised only yarn bank issues and that too was not of much relevant from execution point of view.
For many states skill development seems a priority; Assam reiterated its demand for a NIFT centre, and it has already made a budgetary provision of Rs. 1 crore. About 45 bigas of land has also been identified by the State Government for this purpose. On the other hand, Uttar Pradesh also requested last year for NIFT campuses at Lucknow, Noida and Bareilly; same was with Goa. In response to these demands, the MoT says that Board of Governors (BoG) of NIFT have been discouraging opening of new NIFT campuses due to shortage of faculty and dilution of the institutes’ reputation on placements.
TP Singh, Deputy Commissioner of Industries, Government of NCT, Delhi has requested for setting up of clusters in Bharat Nagar/Rani Bagh areas through Weavers Service Centre of Bharat Nagar on the pattern of Sunder Nagari Cluster. Three other demands made by the state were also related to handloom sector. Surprisingly, the letter alleges that similar types of issues were raised in each of the last three years’ conferences, but as per the letter of Delhi Govt. actions taken by Government of India are still awaited.
Some states have also asked for sanction of more numbers of apparel and garment manufacturing centres. Tripura asked for the approval of 7 apparel manufacturing units. Nagaland requested to consider a proposal for workers’ hostel for the apparel making centre in Dimapur to improve productivity by attracting and retaining the work force. Rajasthan has asked for allocation of additional target of 6,000 persons under the Integrated Skill Development Scheme (ISDS) in this FY as Central Government has allocated targets of 5,000 while state wants to train 11,000 people. Gujarat has also asked for enhancement – the targets of training from 30,000 to 60,000, but MoT has advised these states to improve the placement percentage of already trained candidates, instead of asking for more capacities.
Textile parks still in demand, but with conditions…
Despite common perception that some textile parks are not successful or need much attention, most of the states have focus on the same like Telangana’s Minister KT Rama Rao requested the Centre to support the mega textile park policy of the state. Rajasthan, which has four such parks operational and two pending for environmental clearance, has asked for additional incentives to make the parks sustainable. Also, since only cost of CETP without ZLD is included in project cost under scheme, the state is requested to consider application of park SPVs for setting up of ZLD CTEPs under the Integrated Processing Development Scheme (IPDS). Representatives from Tamil Nadu said that new projects should be approved only in consultation with the State Government in future as stakeholders directly submit their projects to MoT, but during implementation, the GOI seeks intervention of the State Government.
Karnataka, which sent proposal one year ago for four textiles parks (Yadgir – 1000 acres, Bellary – 800 acres, Sira – 500 acres, and Chamarajanagara – 83.20 acres), has since acquired land for all four parks. This time the state has requested to amend guidelines to create synergy and said, “It is convenient to implement these projects through the State Government agencies.” Assam too asked for setting up of mini/small textile parks; Manipur has asked to modify the criteria as it is difficult to get 25 acres of land in the hilly regions. Gujarat also demanded processing park last year and MoT says that as there is huge demand for this scheme (IPDS) and given resources are limited, states should prioritize the projects while recommending them.
It is worth mentioning that even last year some of the states put forward similar suggestions and the Government is already considering some points. On 27th June 2016, the State Governments were requested by MoT to send detailed proposals regarding mega textile parks but most of the states have yet to respond.
Punjab requested last year for the sanction of 2nd proposal for CETP, but revised proposal was not submitted by Punjab Dyers Association (PDA) as they wanted to revise the proposal for conventional treatment system instead of ZLD.
Tamil Nadu has asked for an additional Rs. 200 crore for marine discharge project for ZLD of 18 CETPs in Tirupur. Similarly, another Rs. 200 crore is demanded for captive power plant (CPP) with Cogen as integral component of CETP for funding under IPDs Scheme. As this demand was also raised last year, MoT mentioned that Tirupur Dyers Association (TDA) will submit a separate proposal for capacity upgradation as there has already been several meetings with various stakeholders and even PMO on the issue.
Tamil Nadu also insisted on Rs. 1,500 crore in 3067 cases which are pending with GOI under TUFS. It has also asked to release central share of Rs.167.85 lakh under ISDS, Rajasthan had also requested to release the 3rd and 4th instalments as it already completed allocated target of 4,500 in the FY 2015-16. Himachal Pradesh demanded balance funding for integrated textile parks but ministry was very clear as it said that there are only 3 units operational out of proposed 12 units and it has not requested for releasing the last instalment, which is possible only after completion of all 11 units as projected in DPR.