Integrated Processing Development Scheme (IPDS) | UPSC IAS IPS IFS

The availability of water, as well as the safe treatment and disposal of generated effluents and solid wastes, have recently been an issue for the textile processing industry. The dyeing and bleaching operations' waste water seriously harmed the ecosystem. There are strict laws and hazardous activity notifications for textile processing in many states, but there are no national requirements for pollution management in the textile industry as a whole because different standards apply in different states.

In addition, several courts in the country have come down heavily on pollution and emphasized the necessity to ensure that discharge standards meet the local norms. For eg., Madras High Court has directed that all Textile Industries in Tirupur would need to achieve Zero Liquid Discharge (ZLD) for them to be given approval by the Tamil Nadu Pollution Control Board.

Furthermore, it is not economically possible for individual Processing units to install specialized pollution control equipment because the processing industry in India has developed under the small and medium firm category. For these units, the ideas of a common wastewater treatment plant and a common water supply system are therefore acceptable.


Integrated Processing Development Scheme (IPDS) | UPSC IAS IPS IFS

Integrated Processing Development Scheme (IPDS) | UPSC IAS IPS IFS

Also Read: Sahakar Pragya Initiative: Objectives, Initiatives, Aim and Significance

The Ministry had introduced a plan for Integrated Textile Parks in the 11th Five-Year Plan. The Ministry had decided to create a new programme dubbed the Scheme for Integrated Textile Processing Development based on the lessons learned from the aforementioned scheme as well as the unique issues faced by the industry of textile processing.


Scope of the Scheme

For a total investment of Rs. 500 crores, the government has approved the creation of a new IPDS to create four to six Brown Field projects and three to five Green Field projects in order to address the environmental problems that the textile processing facilities are now facing. The programme will offer financial assistance from the government to build shared infrastructure to spur private sector investment in the main processing clusters. The scheme's specifications call for a maximum government contribution of Rs. 75 crores, or 50% of the project cost. The projects under the scheme would cover the following:-

  • Group A: Plants and technology for treating wastewater and treating water (including marine, Riverine and ZLD).
  • Group B: Common infrastructure, such as captive power-producing facilities using, preferably, green or renewable technologies.
  • Group C: consists of typical buildings including testing labs and R&D facilities.

The grant from the Government of India will only be mandatory for Group A. The grant from the Indian government cannot be used to purchase land. The SPV will arrange for or purchase the land. The price of the land won't be included in the overall project cost.


Few Important facts

Particulars Facts
Full name of the scheme:


Integrated Processing Development Scheme
Aim: To address the environmental challenges in the textile processing units sector.


Nodal Ministry:


Ministry of Textiles


Special purpose vehicle (SVP)
Type of scheme: Centrally sponsored


Budget allocated:


Rs 500 crores



The major objectives of the Integrated Processing Development Scheme are:-

  • To advance the textile industry and make it competitive on a global scale.
  • To make it easier to use environmentally friendly technology while processing textiles.
  • To assist textile processing facilities in meeting environmental criteria established by several government bodies.
  • To promote research and development (R&D) initiatives focused on cutting-edge, eco-friendly technology.
  • To develop new processing parks and upgrade current ones for better productivity.

IPDS has these focus areas:-

  • Adequate and timely supply of water
  • Wastewater management
  • Safe treatment of effluents before disposal



Agencies Involved and Implementation Strategy:-

a) Special Purpose Vehicles: A separate Special Purpose Vehicle (SPV) that is a corporate body established under the Companies Act will be formed to carry out the project. The members (Industrial Units) of the processing park, financial institutions, state and federal governments, as well as local governments, shall own the SPV.

Within the bounds of the regulations established by the Government of India, the SPV should have operational autonomy to carry out the programme. Other than the SPV, numerous other organisations are involved in implementing and monitoring the effectiveness of the Integrated Processing Development Scheme.

b) Project Management Consultant (PMC): The Ministry of Textiles appointed this advisory panel to help with the evaluation of proposals, the use of funding, and project progress monitoring.

c) Project Scrutiny Committee (PSC): Joint Secretary for the Ministry of Textiles will serve as the agency's leader. The PMC will evaluate the proposals for viability after submission.

d) Project Approval Committee (PAC): The leader of this group will be the Secretary of the Ministry of Textiles. It is intended to provide IPDS with administrative support.

e) Project Management Agency (PMA): The SPV will appoint a PMA for the creation of the project plan and other implementation support following PAC approval.

f) Operation & Maintenance (O&M) agency: It is in charge of performing expert maintenance on SPV's assets for at least 15 years.


Funding Pattern

The Special Purpose Vehicle will finance the project using a combination of equity from business owners, grants from the state and ministry of textiles, and loans from banks and financial institutions. With a cap of Rs. 75 crores for projects with Zero Liquid Discharge Systems and Rs. 10 crores for projects with conventional treatment systems, the Government of India's contribution under the plan would be limited to 50% of the project cost.

With a maximum cap of Rs. 75 crores, support for marine discharge projects would be evaluated on a case-by-case basis. The project cost shall be shared by the Center, State, Beneficiary, Bank loan in the ratio of 50:25:15:10 accordingly. The release will be made as per the following:-

  • Beneficiary contribution through equity of 15 percent of project cost shall be brought upfront;
  • 10 percent funding to be arranged through Bank Loans
  • 25 percent contribution of the State Government at the time of the release of the 2nd instalment of the GOI Grant released.
  • The GOI grant (50% of the total Project cost) shall be released in 3 instalments.
  • 50 percent of the GOI grant is to be released initially after beneficiary contribution (1st instalment)
  • 30 percent of the GOI grant once the plant is operational (2nd instalment)
  • 20 percent GOI grant once the plant has been run for 3 years (3rd instalment)

The financial assistance for the scheme shall also be subject to the following conditions:-

  • The Central Assistance will only be given to cover capital expenses.  It is forbidden to utilize the money to buy land for the project.
  • No support will be given to cover ongoing or ongoing maintenance expenditures.
  • Time and expense overruns are not the responsibility of the central government.
  • No provision is made for retroactive funding.
  • The land will not be included in the project's overall cost.


Technology Selection

Depending on the region and the regulations set forth by the relevant State Pollution Control Boards, different regulatory standards must be followed by processing parks.

In order to comply with local regulations, it is understood that the needs for water supply and wastewater treatment will differ from one place to the next. The SPV / PMC must keep the following in mind when formulating projects.

  • Best Available Technology (BAT) should be the foundation of any proposed technology, and it should also have a track record of success.
  • The Pollution Control Board itself or an independent organisation it has designated (such as IITs, etc.) shall accept the proposed technology.
  • Reasonable project costs that fall under the general categories of three types of effluent treatment systems (conventional, marine discharge, and ZLD). All proposals should include a mechanism for managing the waste sludge/salt created from the system.


Role of Special Purpose Vehicle (SPV)

As the focus points for the Scheme's implementation, SPVs would take on the following responsibilities:-

  • The SPV would develop, formulate, get financial closure, implement and maintain the infrastructure.
  • The SPV would purchase land, whose cost would not be included in the project's budget.
  • SPV would make it easier to get the bank financing needed to build up units in ITP.
  • SPV would be in charge of maintaining the infrastructure and utilities built for the processing park by obtaining service and user fees.
  • The SPV needs to be set up in such a way that it can generate a positive revenue stream and support itself.
  • SPV would choose contractors, PMAs, and O&M Agencies fairly and openly. The SPV will ask PMA/contractors for the proper performance guarantee in order to guarantee the project's timely completion.
  • The SPV will be in charge of acquiring and keeping up-to-date copies of any legal licenses and permits necessary for the various facilities.


Role of State Government

The role of the State Government is envisaged in the following areas:-

  • Providing the necessary clearances, as required, for establishing the Park and providing the Park with the necessary power, water, and other amenities.
  • Assist in finding and acquiring suitable land.
  • Organizations affiliated with the State Government, such as Infrastructure/Industry Development Corporations, may also take part in the projects by subscribing to the stock of the SPV or by making grants worth up to 25% of the total project cost.
  • Creating a flexible and welcoming work environment and taking particular measures, including exempting units inside the ITP from paying stamp duty, into consideration.
  • Integrating other related plans for the project's overall effectiveness and efficiency.

For these purposes, the State Government shall designate a nodal agency. The State Pollution Control Board's or PMC's recommendation, as well as permission to set up and permission to run the CETP, must all be included in the project proposal/Detailed Project Report (DPR).

Outlet norms for the industry shall be specified by SPCB in Consent as an essential prerequisite. Additionally, SPCBs must guarantee that the inlet parameters for CETP and the outlet specifications for each industry work together harmoniously.


Way Forward

India's textile industry has great potential, which should be exploited by utilising creativity, cutting-edge technology, and enhanced infrastructure at all levels. By building processing parks and shared textile infrastructure, India can promote the expansion of the textile sector. The goal should be to update outdated equipment and technologies.

A thorough textile strategy is required for the nation. After it is established, the nation must enter mission mode to carry it out. Also, one of the parameters to measure the success of this scheme shall be judged by the amount of reduction in pollution due to textile industries along with the growth of various involved stakeholders in this industry.

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