Service Centre Scheme for Knitting and Knitwear Clusters

The knitting and knitwear sector are the major segments of the entire textile value chain. It contributes about 27 percent of the total fabric production and about 15 percent of the knitted fabric exported. This paved the way for the Confederation of Indian Textile Industry (CITI) to launch the Comprehensive Scheme for the Development of Knitting & Knitwear Sector with various components under PowerTex India. The Ministry has approved the combined SFC (Standing Finance Component) of PowerTex India Scheme and Knitwear Scheme with an amount of Rs.487.07 crore. Out of this, a sum of Rs.439.35 crore is considered by the PowerTex for three years from April 1, 2017 to March 31, 2020. An additional grant of ₹47.72 crore is reserved for the remaining years of 2018-2020. The comprehensive scheme covers several components to establish more service centres and strengthen the support for knitting and knitwear sector in India. This article explores the creation of new service centres on public, private partnership (PPP) model by industry and association in the knitting and knitwear clusters.

Objectives of the Scheme

The scheme is launched with the following key objectives:

To deliver advanced facilities for testing, training, sample development, consultancy and troubleshooting
To establish new service centres through Public-Private Partnership (PPP) mode in the knitting and knitwear clusters

Establishing Knitting Service Sectors (KSCs)

The Knitting and the Knitting sector forms predominant role in the development of Micro, Small and Medium Entrepreneurs (MSME) and bring in enormous growth for the Nation’s Textile Industry. Hence, the Ministry of Textile together with the Government of India encourages larger investment and employment in the textile industry to deliver a stronger base for export of knitted apparels in the country. The establishment of new KSCs foster the structure of the knitwear industry in the following regions:

Tiruppur
Kolkata
Ludhiana
Kanpur and
Other NCR clusters

General Guidance

In order to establish new Knitting Service Centers, the following guidelines are to be followed:

The approved KSCs must be established under the Public-Private Partnership (PPP)
The Knitting and Knitwear Service Centre Association should be formed with the association of Knitting and Knitwear industry entrepreneurs and stakeholders, to undertake the functions of the service centres.
The Knitting and Knitwear Service Centre Association should be responsible for providing and maintaining the land and building for the setting-up of the KSCs.
The Knitting and Knitwear Service Centre Association should aid in the testing that is in line with the technology trends.
The association should strictly follow the works of testing samples as laid by First-in-First-out (FIFO) format.
In case of emergency issues such as testing the samples for export clearance, a special ‘express charges’ are taxed.
The regular expenditure for maintaining the KSCs are covered by the associations, the stakeholders and the industries involved.
The respective KSCs are free to decide on the user charges for availing various facilities in the service centres. However, approval is subjected from the Textile Commissioner or Ministry of Textiles, Govt. of India on any changes in the user charges decided by the association.
The Ministry intervenes and monitors the KSCs and the associations

Financial Assistance

The total assistance of Rs.200 Lakhs is allotted under the scheme to purchase the testing equipment and machinery which are necessary for training the KSCs.

Fund of1,30,75,000 is allotted for purchasing the list of machinery involved in the Physical Testing Laboratories
Automatic Wrap reel, Electronic Analytical Balance
Electronic Lea Strength Tester, Electronic Twist Tester
Single Yarn Strength Tester (Electronic Type)
Launder o meter with Grey Scales, Crock meter with Grey Scale
Perspirometer, Air Conditioner (1.5 Ton)
Projection Microscope and Yarn Evenness Tester UT-5

Fund of Rs.12,95,000 is allotted for purchasing the list of machinery involved in the Fabric & Chemical testing Machines & Equipment includes:

Beasley Balance, Fabric Strength tester, Crease recovery tester
Fabric sample cutting machine, UV Cabinet
Tumble Dryer, Wet & Dry fastness testing machines
Computerised Colour Matching Unit and
Abrasion tester

Fund of Rs.26,05,500 is allotted for purchasing the list of machinery involved in the Development of Training Facilities on Knitwear Manufacturing includes:

Single Needle lock stitch with clutch motor
Double-needle lock stitch
Buttonhole, Button stitch, Overlock
Feed of the Arm machine, Lock stitch with computer control
Pattern cutting table (2’6”×6’×6’)
Cutting machine (Straight Knife), Cutting machine (Round Knife)
Attachment and tool kit, Pressing table & iron
Fusing machine, IT infrastructure (Hardware and software systems)
Furniture etc. and
Garment Software (CAD)

Fund of Rs.29,10,000 allotted for purchasing the list of machinery involved in the Development of Fabric Embroidery & Knitting Training Facilities includes:

Computerised Embroidery Machine (multi-headed) with Sequence.
IT infrastructure (Hardware and CAD system) including 6 Computers, printers and CAD Software.
Single Jersey Knitting M/C, Single Jersey Knitting M/C with the Auto stripper
Rib Machine, Collar/Cuff Machine
Library-Cum-meeting room, LCD projector with screen, DG Set 15 KVA
Furniture & Fixtures, Fax and UPS
The machinery must be purchased within the allotted amount, and anything exceeding the cap should be borne by the stakeholders.

Monitoring Committee

The Government body has set up a monitoring committee to implement the scheme in the cluster areas.
The KSCs set up by the associations are supervised and inspected by the Textile Commissioner
The functioning of the knitting and knitwear centres are monitored by the Office of the Textile Commissioner.
The GOI, the Textile Commissioner and the Ministry of Textiles intervenes the Implementing Committees’ process, in case of the misuse or abuse of funds and the delay in completing the setting-up of the KSCs.
The Implementing Committee is subjected to repay the funds that are misused with a Simple Interest of 10% per annum.
Project Approval Committee is established under the Power Tex India that holds the complete authority for all the decisions pertaining to the funds for setting-up of KSCs.

Company Registration

OPC Registration