DELHI: To address the environmental issues faced by textile processing units, the government will come out with a new Integrated Processing Development Scheme, Parliament was informed today.
Under the scheme, four to six brownfield projects and three to five greenfield projects will be set up entailing a total cost of Rs 500 crore.
The scheme will provide government support to establish common infrastructure in order to catalyse private sector investments in the major processing clusters. The scheme envisages government support up to 50 per cent of the project cost with a ceiling of Rs 75 crore.
The information was given by the Minister of State for Textiles Panabaaka Lakshmi in a written reply in the Rajya Sabha.
The scheme would cover water treatment and effluent treatment plant and technology (Group A); common infrastructure such as captive power generation plants on preferably green technology (Group B); and common facilities such as testing laboratories and R&D centres (Group C).
The government grant will be mandatory for Group A only.
Besides, government grant shall not be used for procurement of land. The land will be purchased and arranged by a Special Purpose Vehicle (SPV). The cost of land will not be part of the total project cost, it was informed.
The scheme would also be applicable for technology up-gradation and capacity enhancement of the above mentioned facilities in existing textile clusters.
The SPV shall fund the project through a mix of equity from members of industry, grant support from Ministry of Textile, and loan from banks and financial institutions.
The project cost shall be borne by the Centre, state, beneficiary and bank loan in the ratio of 50:25:15:10 respectively.