The government has approved the launching of a new Integrated Processing Development Scheme (IPDS) to establish four to six Brown Field projects and three to five Green Field projects with a total cost of Rs. 500 crore to address the environmental issues faced by the textile processing units. The scheme will provide government support for establishing common infrastructure to catalyse private sector investments in the major processing clusters. The scheme parameters envisage Government support limited to 50% of the project cost with ceiling limit of Rs.75 crore.

The projects under the scheme would cover the following:

Group A - Water treatment & effluent treatment plant and technology (including marine, Riverine and ZLD).

Group B – Common infrastructure such as captive power generation plants on technology preferably renewable/green technology,

Group C – Common facilities such as Testing Laboratories and R&D centers.

Government of India grant will be mandatory for Group A only. The Government of India grant shall not be used for procurement of Land. The land will be purchased/arranged by the SPV. The cost of land will not be part of the total project cost.

The scheme would also be applicable for Technology up-gradation and capacity enhancement of the above mentioned facilities in existing Textile Clusters.

The details of the facilities and incentives being offered to the projects considered under this scheme are as under:

The Special Purpose Vehicle shall fund the project through a mix of equity from members of industry, grant support from Ministry of Textile / State Government, and the loan from Banks and Financial Institutions. The Government of India support under the scheme by the way of grant would be limited to 50% of the project cost, with a ceiling of Rs.75 crore for projects with Zero Liquid Discharge Systems and Rs.10 crore for projects with conventional treatment systems. Support for marine discharge projects would be analyzed on a case to case basis with a maximum ceiling of Rs.75 crore.

The project cost shall be borne by the Center, State, Beneficiary, Bank loan in the ratio of 50:25:15:10 respectively.

The information was given by the Minister of State in the Ministry of Textiles Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha today.