UP’s First Integrated Private Textile Park being set up in Shamli district to boost local production and employment Spread over 27 acres in Shamli district, having small to medium scale production units, including weaving, dyeing, printing, and garmenting This initiative aims to reduce the need to buy raw material from other states or China Best of common infrastructure facilities having wide Roads, Door-step 24x7 Uninterrupted Electricity and round the clock Security Connectivity to several National Highways by wide road for seamless movement of material and manpower Park will be having a State of the Art Testing Centre for product testing and a World-class High-Level Skill Development Centre Common visitor area for industries to showcase their products to their buyers Textile Park will have the most innovative Waste water treatment plant based on Zero Liquid Discharge which will recycle 98% of water Quality of water to Textile industry would be the best of its kind which will make their dyeing and other processes world class The Park would have common Boiler for Steam Solutions The industries in the park will get various Fiscal Benefits under the UP govt Textile Policy 2022 Common Administrative Block for administrative monitoring of the entire Park Commercial and Residential area for
The Uttar Pradesh Textile and Garmenting Policy, 2022 (UPTGP-2022) places a significant focus on developing textile parks, both under the Central Government's PM MITRA scheme and through private sector participation, to establish the state as a global textile manufacturing hub. The policy's specific targets include the development of five (05) Textile and Apparel Parks through the private sector.
The textile park policy is divided into two main components: Special Incentives for PM MITRA Park Units (Section 6) and Incentives for Private Textile Parks (Section 7).
Here is a summary of the key features of the textile park policy:
1. Incentives for Private Textile Parks
The policy provides financial and regulatory support for the development of integrated textile and apparel parks by the private sector:
Eligibility Criteria: The park must be developed in a minimum area of 25 acres. It must also include "Plug and Play" facilities and a Common Effluent Treatment Plant (CETP).
Financial Assistance (Project Cost): The government offers a financial assistance of 50% of the project cost (excluding the cost of land), subject to a maximum cap of INR 50 Crore per park.
Stamp Duty Exemption:
The developer of the private textile park is eligible for 100% exemption from stamp duty (except in Gautam Budh Nagar district).
The first buyer of a plot or unit in a privately developed textile park will receive a 50% exemption on stamp duty.
Infrastructure Facilitation: The government commits to facilitating development by strengthening existing roads and providing necessary electric lines, separate feeders, and/or sub-stations.
2. Special Incentives for Units under the PM MITRA Park Scheme
The UP Government has a dedicated mega textile park under the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme (e.g., the park in Lucknow and Hardoi). Units setting up within the PM MITRA Park receive the following special benefits from the State Government:
Stamp Duty Exemption:
The developer of the PM MITRA Park is eligible for 100% exemption from stamp duty (except in Gautam Budh Nagar district).
The first buyer of a plot or unit in the PM MITRA Park is also eligible for 100% exemption from stamp duty (except in Gautam Budh Nagar district).
Power Tariff Subsidy: Units that generate employment for a minimum of 50 persons will be provided a power tariff subsidy of INR 2 per unit for a period of 5 years. The annual upper limit for this subsidy is INR 60 Lakh per unit.
These park-specific incentives are offered in addition to the general incentives available to all new textile and garmenting units under the policy, such as Capital Subsidy, Land Cost Subsidy, and 100% exemption from Electricity Duty for 10 years.
TheKarnataka Government's textile policy, particularly regarding Textile Parks, is based on the New Textile and Garment Policy 2019-2024.
This policy aims to position Karnataka as a leading destination in the textile and apparel sector, targeting an investment of INR 10,000 crore and the creation of 5 lakh new jobs during the policy period.
Key Provisions for Textile Parks (Common Infrastructure)
The policy provides substantial financial support for the development of both Greenfield (new) and Brownfield (existing) Textile Parks, offered as a one-time grant to the Individual Legal Entity or Special Purpose Vehicle (SPV) managing the park.
Park Type Maximum State Grant Provided Conditions
Greenfield Parks Up to 40% of the project cost or ₹40.00 crores per park project, whichever is less. The grant is provided irrespective of the Zone.
Brownfield Parks Up to 40% of the project cost or ₹12.00 crores per industrial estate project, whichever is less. The grant is provided irrespective of the Zone.
Additional Support for Infrastructure:
Projects under Central Schemes: Projects already approved and funded under any Central Government scheme may receive an additional 10% of the project cost as a supplementary State Government incentive.
Common Effluent Treatment Plants (CETP): A one-time grant of up to 50% of the project cost is provided for CETP and Hazardous Waste Disposal facilities.
Other Key Policy Incentives
The policy offers various incentives that are typically tied to the investment location, categorized into four zones, with Zone 1 (Kalyana Karnataka Region) receiving the highest benefits and Zone 4 (Bangalore Urban District) receiving none of the major capital incentives.
Thrust Sectors: Special focus is given to Spinning, Weaving, Integrated Units, Processing, and Technical Textiles.
Capital Subsidy: Varies by sector and zone, ranging up to 30% of the value of Fixed Assets for MSME units in Thrust Sectors in Zone 1.
Interest Subsidy:5% per annum Interest Subsidy on Term Loans for the first 5 years in Zones 1, 2, and 3 for Large Enterprises.
Power Subsidy: Subsidies on power consumption (e.g., ₹2 per unit) are provided for specific segments in Zones 1, 2, and 3
Employment-Linked Subsidies:
Wage Subsidy: Garmenting units in Zones 1, 2, and 3 are eligible for a per-employee monthly wage subsidy (e.g., ₹3,000 per employee in Zone 1).
EPF and ESI Reimbursement: 75% reimbursement of the employer's contribution for new units for a period of 5 years in all zones except Zone 4.
Stamp Duty: Exemption from Stamp Duty and concessional registration charges are provided in all zones except Zone 4.
Tamil Nadu Textile Park Policy
Key Aspects of Tamil Nadu's Textile Park Policy:
Objective and Background
Amendments: Amendments to terms, conditions, and eligible project components were made in 2019 and 2022 based on stakeholder demands.
Eligibility and Structure
Promoters: Industry Associations, Groups of Entrepreneurs, and Societies.
Special Purpose Vehicle (SPV): A Corporate Body registered under the Companies Act must be formed by the member units at each Mini Textile Park (MTP).
Minimum Requirements
Minimum of 3 textile manufacturing units.
Minimum 2 acres of land.
Effective Date: The scheme comes into effect from the date of the latest amended Government Order (G.O. (Ms) No. 97) dated 24.06.2022.
Project Components and Cost
The Eligible Project Cost for determining the grant covers the following components of the MTP:
Common Infrastructure: Roads, street lights, compound walls, drainage, water supply, electricity supply (including captive power plant), Effluent Treatment Plant, and telecommunication lines.
Common Facilities: Testing laboratory, Design Centre, Training centre, Trade Centre, warehousing facility, Raw material depot, Crèches, Canteen, Workers hostel, and Offices.
Factory Buildings for production purposes.
Note: The cost of the land, plant & machinery, and any other items chosen by the SPV are not included in the eligible project cost.
Funding Pattern
State Grant:50% of the eligible project cost or ₹2.50 crore, whichever is less, shall be provided as a grant by the State Government.
Example Funding Table:
| Sl.No | Total Eligible Project Cost | Eligible Grant |
| 01 | Rs. 1.00 crore | Rs. 50.00 lakh |
| 02 | Rs. 3.00 crore | Rs. 1.50 crore |
| 03 | Rs. 5.00 crore | Rs. 2.50 crore |
| 04 | Above Rs. 5.00 crore | Restricted to Rs. 2.50 crore |
Disbursement: Government subsidy will be released in 3 instalments in the ratio of 30:30:40.
Implementation Timeframe
The timeframe for implementation is 24 months, commencing from the date of approval of the Project by the Project Scrutiny and Approval Committee (PSAC).
Prior permission from the Department of Textiles is required for any extension.
Evaluation and Approval Process
Project proposals are subject to a two-tier evaluation and approval process:
Project Evaluation and Recommendation Committee (PERC): Reviews the Detailed Project Report (DPR) to check for basic eligibility, adherence to terms, technical feasibility, financial viability, and socio-economic viability.
Project Scrutiny and Approval Committee (PSAC): Peruses and approves the proposals recommended by the PERC. The PSAC also prescribes the grant disbursement schedule.
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