CAG faults Andhra government for delay in textile parks completion

Several crores spent by the State government for land acquisition, creation of infrastructure and for paper work remain unfruitful, the report implied.

VIJAYAWADA: The textile and apparel parks being developed by the State government to help weavers and several others who are dependent on them remains incomplete. No units were established in two textile parks as of date and the only unit started in Rayadurg of Anantapur district remains idle. This was disclosed in the CAG report.

The establishment of textile and apparel parks was intended to increase employment and export of textiles/apparels. However, there were delays ranging from 23 to 156 months in establishment of parks due to improper selection of site, delay in transfer of lands to Department of Handlooms and Textiles, non-completion of infrastructure facilities and amenities.

According to CAG, it resulted in significant non-achievement of objectives of the parks as envisaged. There was 24 to 100 per cent shortfall in setting up of units in these parks while the shortfall in employment generation ranged from 74 to 100 per cent. 

From 2002-03, efforts were on to develop textile and apparel parks, some export-oriented and some integrated parks with domestic market in focus. Under different schemes, 11 such parks were taken up in the State. CAG for its auditing had reviewed five parks, one developed by a private party with government support (Brandix India Apparel City Private Limited), two by APIIC Apparel Export Park (AEP), Proddatur and Vizag Apparel Export Park) and two by the Department of Handlooms and Textiles (Textile park in Mylavaram and textile park in Rayadurg). BIACPL and VAEP had received Central government assistance under Scheme for Integrated Textile Park (SITP) and Apparel Parks for Exports Scheme (APES) respectively. 

No progress yet on big ticket projects

CAG observed that site for textile park in Mylavaram was not right and the Detailed Project Report (DPR) prepared by Andhra Pradesh Industrial and Technical Consultancy Organisation Limited (APITCO) for 62.18 acres of the project was faulty. It said as per DPR, the land surface was plain and involved minimum development cost. Further it was said the State had easy accessibility to water due to proximity to Mylavaram Reservoir and availability of groundwater. The DPR stated there was potential for immediate investment and employment generation, which were favourable factors. 

However, the audit observed from the records that the Water Resources Department could not provide water form Mylavaram Reservoir and at present, the textile park was depending on a borewell to meet its requirements. Out of 118 plots of the park, only 43 were allotted to entrepreneurs and no unit has been established till date. 

In respect of Apparel Export Park in Proddatur, a DPR was prepared for the project on 50 acres of land in 2004. Proposals to Central government seeking funding under Apparel Export Park Scheme, but the proposal was returned pointing out several discrepancies in the proposal. First of all, the land identified was only 50 acres as against prescribed 150-250 acres. Further, the DPR lacked details of the proposed garment units/investments/ production/marketing. No Master Plan was indicated. The State government started development of the AEP with its own funds by acquiring 76.17 acres of land without preparing any fresh DPR. It saw the park not receiving any investor till date, CAG observed. 

It was also observed that Brandix India Apparel City Private Limited was partially completed with delay of 23 months and three parks - Mylavaram Textile Park, Rayadurg Textile Park and Apparel Export Park in Proddatur were not completed till date, even though they were proposed to be completed by February 2006, June 2003 and December 2006 respectively. It was due to non-transfer or delay in transfer of lands in the name of Department of Handlooms and Textiles. Transfer of lands was necessary for allotment of individual plots for setting up of units in those parks. Non-development of infrastructure was also a reason for delay in completion of AEP Proddatur and textile park in Rayadurg. Several crores spent by the State government for land acquisition, creation of infrastructure and for paper work remained unfruitful.

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