March 13, 2002

'19'

TEXTILE CENTRE INFRASTRUCTURE DEVELOPMENT SCHEME – T.C.I.D.S

    The Cabinet Committee on Economic Affairs has approved RS. 150 crores under Textile Centre Infrastructure Development Scheme TCIDS- for modernisation of 24 Textile Centres in the country. With the lowering of custom duties, removal of quantitative restrictions and phasing out of Multi Fibre Arrangement (MFA) textile industry is going to face fierce competition not only in exports but also in domestic market due to imports from neighbouring countries like China, Bangla Desh and Srilanka. In order to address the need for rejuvenating and plugging critical gaps at major textile production centre, a scheme titled "Textile Centre Infrastructure Development Scheme has been formulated. This scheme is one of the key elements for the strategy to equip textile industry not only to reach the export target of US$ 50 billion by 2010 but also to withstand impending threat of imports.

    The scheme aims at upgrading infrastructure facilities of textile centres such as Tirupur, Coimbatore, Karur, Bangalore, Delhi-Noida-Gurgaon, Panipat, Ludhiana, Ahmedabad, Mumbai, Bhiwandi, Ichalkaranjee, Burhanpur, Salem-Erode, Varanasi, Mau, Meerut-Pilakhua, Surat, Solapur, Calcutta (knitting), Chennai, Channannor, Amritsar, Baddi (Himachal Pradesh), Malegaon and Bhilwara. The funds under the scheme will be used for (I) common effluent treatment plant facilities, (ii) Provision of testing facilities, (iii)Strengthening of power supply and (iv) establishment of design centres etc.

    The central assistance will be limited to 50% subject to a maximum of Rs. 20 crores for each centre. The remaining 50% will be contributed by the State/Union Territory or any designated agency of the State Government. Rs. 150/- crores will be required for a period of 4 years for upgrading infrastructure facilities of 24 Textile Centres. The expenditure would be non- recurring. Year-wise requirement of funds would be as under:-

    1. Rs. 20.00 crores
    2. Rs. 40.00 crores
    3. Rs. 40.00 crores
    4. Rs. 50.00 crores

    A provision of Rs. 10 crores has been approved for Annual Plan 2001-2002 and a suitable provision would need to be made for the period 2002-05.