Integrated Processing Development Scheme (IPDS)

During the 12th Five Year Plan, the Ministry of Textile, Government of India, introduced the Integrated Processing Development Scheme (IPDS). It's one of a slew of government initiatives that have been introduced in recent years. IPDS is a government-sponsored programme that aims to develop four to six brownfield projects and three to five greenfield projects at a total expenditure of Rs. 500 crore. Under the permission of the Cabinet Committee on Economic Affairs, this initiative intends to alleviate the environmental concerns that textile factories in India confront (CCEA).

IPDS (UPSC Notes):-Download PDF Here

Objectives of IPDS

The textile processing business in India has faced several issues in recent years, including a lack of water, proper treatment and disposal of effluents, and the development of solid wastes. Textile processing is a critical part of the textile industry's value chain in India. The following are some of the primary goals of the Integrated Processing Development Scheme (IPDS):

• To give government assistance in the development of a shared infrastructure that will accelerate private-sector investment in key processing clusters.
• To make the textiles sector more globally competitive by establishing new processing parks and implementing environmentally friendly processing standards and technologies.
• To help upgrade current processing clusters/centres, particularly in the sphere of water and wastewater management.
• To encourage research and development in the textiles processing industry.

Implementation of IPDS

IPDS was adopted to help textile units overcome a variety of issues. These issues include a lack of water for processing and contamination caused by the release of untreated effluents into the environment. IPDS sought to build processing parks with effluent treatment facilities and water supply systems as well. During the 12th Five Year Plan, the Integrated Processing of Development Scheme was implemented through the creation of Special Purpose Vehicles (SPVs). SPV is a legal entity that is incorporated under the Companies Act and operates in accordance with government regulations. It is also in charge of securing bank financing and licences necessary for the expansion of the company.

IPDS focuses majorly on the following three areas:

1. Wastewater management
2. Adequate and timely supply of water
3. Safe treatment of effluents before disposal

Agencies involved under IPDS

Several additional agencies, in addition to Special Purpose Vehicles (SPVs), are participating in the execution of the Integrated Processing Development Scheme. These organisations are:

• Operation & Maintenance (O&M) agency: It is responsible for the professional maintenance of the assets of SPV for a period of at least 15 years.

• PMC (Project Management Consultant): PMC (Project Management Consultant) is an advisory group appointed by the Ministry of Textiles to assist with the use of money, project monitoring, and proposal evaluation.
• The Project Scrutiny Committee (PSC), which is chaired by the Joint Secretary of the Ministry of Textiles, evaluates projects for feasibility once they have been submitted to the PMC.
• The Project Approval Committee (PAC), which is chaired by the Secretary of the Ministry of Textiles, provides administrative assistance to the project.
• Project Management Agency (PMA): After PAC approval, the SPVs appoint PMA to prepare the project plan and other implementation documents.