Business

India: Comprehensive Powerloom Cluster Development Scheme will continue

The Cabinet Committee on Economic Affairs (CCEA) has given its approval for continuation of the Comprehensive Powerloom Cluster Development Scheme (CPCDS), a Central Sector Plan Scheme, during the 12th Plan. The CCEA also approved modification of the guidelines of the scheme for development of Powerloom Mega Clusters at Ichalkaranji, Bhiwandi and future projects.

The modified scheme with an outlay of Rs 1.10 billion for 12th Plan will be implemented through a Public Private Partnership (PPP) model. CPCDS assistance under the modified scheme would supplement the development of existing brownfield facilities and infrastructure and enhance their productivity through provision of common infrastructure facilities, modern technology, designing, testing, skill development, etc. A gap filling exercise for each cluster would identify the need based infrastructure that is to be funded.

The important changes approved in the modified guidelines in the current Plan with reference to the existing projects include changes in the investment ratio. The funding will be in the ratio of 60 percent government and 40 percent private from the earlier 40 percent government and 60 percent private. The overall limit of CPCDS grant has been reduced to Rs. 500 million from Rs 700 million (each cluster) in the 11th Plan and the investment would be in the brownfield projects which was earlier allowed in greenfield and brownfield.

Land cost will be excluded from the project cost and dovetailing from Technology Upgradation Fund Scheme for technology upgradation and Integrated Skill Development Scheme for skill development in addition to CPCDS grant has been sanctioned. The textiles ministry has been running this scheme with an aim to strengthen, modernize and expand the market base of the powerloom sector.