Scheme for Integrated Textile Parks (SITP)

The Scheme for Integrated Textile Parks was launched in 2005 and is designed to create world-class infrastructure for setting up textile manufacturing units by clustering them into parks. The purpose of the scheme is to support textile units by providing common infrastructure, production facilities, support services and plug-in facilities so that they can operate more efficiently, reduce costs, meet environmental/social standards, and become globally competitive. Your business, as an MSME in textile manufacturing or part of a cluster, can benefit if you join or form a park under this scheme, because you’ll gain access to ready-infrastructure, lower set-up cost and a common facility model.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Cluster-based textile parks with multiple units under a Special Purpose Vehicle : Each park is promoted by an industry association / group of entrepreneurs / state industrial body, and a separate SPV is formed for execution and operation. This structure ensures collective planning, pooled infrastructure and shared benefits.
Support for common infrastructure and support facilities: The scheme covers components such as compound wall, roads, drainage, water supply, captive power, effluent treatment, testing lab, design centre, training centre, warehousing, raw-material depot etc. These enable textile units to plug into a ready park-infrastructure instead of building everything individually.
Government of India grant component and co-investment: The GoI support is up to 40 % of approved project cost for most areas; in the North-Eastern/Special category states it may go up to 90%. The rest of the cost is to be invested by the SPV/units and the State.
Land requirement and major investment by the participating units: For eligibility, each park is expected to house around 50 units and the aggregate investment in land, factory buildings and plant & machinery by the units should be at least twice the cost of the common infrastructure approved. This ensures strong entrepreneur commitment and viability of the park.
Targeting high growth locations & full value-chain presence: The scheme is designed for locations with growth potential in the textile value-chain . The park may be set up in SEZs or outside, depending on the offer.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
GoI Grant to SPV	Up to ~ 40% of approved project cost	Example: If a park’s approved infrastructure cost is ₹ 50 crore, GoI may provide up to ₹ 20 crore grant.
Higher support in Special States	Up to ~ 90% of cost for first one/two parks in North-East/HP/J&K etc.	Example: A park in a Special Category State may get up to 90% of infrastructure cost as grant so lower entrepreneur investment required.
Project cost components	Cost of common infrastructure, support buildings, factory buildings counted in project cost under scheme.	Example: Roads, drainage, ETP, power supply, testing lab form the project cost. Units’ factory buildings and machinery investments by individual entrepreneurs are separate but linked for eligibility.

Eligibility Criteria

Who can apply:

A project promoter forms a Special Purpose Vehicle registered under the Companies Act.
The SPV must propose a new ITP typically covering around 50 units and have aggregate investment such that the entrepreneurs’ investment in land, factory buildings and plant & machinery is at least twice the cost of common infrastructure proposed.
The proposed park should cover suitable land , or be in a location with textile potential, and should meet the components defined under the scheme

Who cannot apply:

SPVs that do not meet minimum promoter criteria, net-worth of promoters, or fail to commit equity may be ineligible.
Projects that do not secure land or statutory clearances before sanction, or do not adhere to scheme guidelines on infrastructure/components may face rejection or withdrawal.
Projects under SITP are time-bound; proposals submitted after the scheme closure or outside the scheme implementation period may not be considered .

Documents Required

SPV incorporation certificate under Companies Act and Memorandum/Articles of Association.
List of promoters/shareholders, their net-worth certificates and equity commitment.
Land title or agreement for land or allotment letter from State Govt.
Project Report covering common infrastructure components, factory buildings/unit space plan, investment plan for units, timeline, environmental/social compliance, details of supporting facilities.
Statutory clearances or status of obtaining them .
State Government support letter/allotment letter for the park and commitment for enabling infrastructure .
Financial model showing entrepreneurs’ investment, cost of infrastructure, phasing, proposed units, etc.
Bank guarantee or commitment .

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: entrepreneurs/promoters aiming to develop a textile park under the SITP.

Option 2: Government Process via Ministry of Textiles

Download the latest SITP guidelines from the Ministry of Textiles website.
Promote/constitute the SPV, prepare project report detailing land, infrastructure, units, investment, environmental/social plan, and apply via the designated portal or submission to the Department of Textiles.
The proposal will be appraised by a Project Approval Committee ; upon sanction, the Central Government grant is released in instalments tied to milestones (typically 30:40:30).
Implementation of infrastructure, allocation of land/plots to units, monitoring of progress, verification of investment, release of subsequent grant instalments.
After units are set up, the park becomes operational and units may avail other benefits under textile policy.

Option 3: Via State/Industry-Promoter Collaboration
In many cases, State Industrial Development Corporations or similar agencies partner with SPV/promoters. Promoters can approach state agencies for land/allotment, link up with PMCs empanelled under the scheme for application and execution.