March 26, 2002

'19'

CENTRALLY SPONSORED SCHEME FOR APPAREL PARKS APPROVED

    The Cabinet Committee on Economic Affairs (CCEA) has approved a centrally sponsored scheme titled "Apparel Park for Export Scheme" for imparting focussed thrust for setting up of apparel manufacturing units of international standards at potential growth centres and to give fillip to exports. Announcing this at a Press Conference, in New Delhi, today, Minister of Textiles, Mr. Kashiram Rana said that the central assistance under the scheme would be given to the extent of 75% of the capital expenditure incurred by the State Governments on the infrastructural facilities of the Apparel Park, while the remaining 25% will be borne by the State Government / agency subject to a maximum of Rs. 10 crores. The Central Government will also provide a sum upto Rs. 5 cores for setting up of an effluent treatment plant, creche/s, any multi purpose centre/hall for marketing / display etc. Besides, the Central Government will provide grant upto 50% of the cost of any training! facility created in the park upto a maximum of Rs. 2 crores. Mr. Rana said this scheme will generate employment besides boosting exports. Each park will at least provide employment to 20,000 persons.

    The Apparel Export Park Scheme would give the major buyers overseas a single stop market in India meeting all labour / environment international standards, boost investments in the sector and develop domestic brands which can withstand the pressure of imports. These Parks will be helpful in achieving the export target of $ 50 billion by the end of 2010.

    The Minister informed that there was a provision in Ministry’s Plan Budget for 2001-02 for giving assistance under the Apparel Park Scheme. He also informed that State Government had furnished project proposals for setting up an Apparel Parks in anticipation of the formal launch the scheme and these would be considered by the Project Approvals Committee under the Chairmanship of Shri S.B. Mohapatra, Secretary (Textiles) at the earliest with a view to kick start the scheme and for utilising the budgetary provision in the first phase. In the second phase, other States too are submitting proposals.

    Mr. Rana stated that for meeting the challenges posed by Post Multi Fibre Agreement era, starting from 31st December, 2004, these Parks will definitely make the textile industry more competitive. Due to dereservation of the textile sector, he expected that more foreign investment will take place.