A report by the Comptroller and Auditor General (CAG) of India has found that out of the 98 integrated textile parks sanctioned by the government since 2005, only 26 have been completed as of February 2022.
30 parks are still under construction while 42 have been cancelled. The report pointed out that the parks — envisaged to be attractive destinations for investment and job creation — have fallen well short of all of their targets.
The report tabled in Parliament says that the government released grants totalling Rs 1,593 crore for these 98 parks.
Of the Rs 1,593 crore released, Rs 688.03 crore were released for parks that still haven’t been completed or that were outright cancelled.
The major reasons for the delay in the completion of parks were delays in obtaining statutory clearances, issues related to land allotment for the parks and the weak financial strength of the Special Purpose Vehicles (SPV) created for the parks.
As a result of the delays and the cancellations of projects, the various targets set for the projects in terms of employment generation, investments and the setting up of textile units all remained unmet by a substantial degree.
