The Integrated Processing Development Scheme (IPDS) is a centrally sponsored scheme launched by the Government of India under the Ministry of Textiles during the 12th Five-Year Plan.
What is the Integrated Processing Development Scheme (IPDS)?
This IPD scheme was approved by the Cabinet Committee on Economic Affairs (CCEA) on 31st October 2013. The scheme aims to modernize India’s textile processing sector and address environmental challenges related to water usage, wastewater management, and effluent treatment.
IPDS focuses on both greenfield projects (new infrastructure) and brownfield projects (upgradation of existing facilities). The total cost of the scheme was ₹500 crore, with financial assistance available to Special Purpose Vehicles (SPVs) and private sector participants to encourage investment in modern, environmentally sustainable textile processing units.
The scheme also promotes research and development (R&D) initiatives, ensuring that India’s textile sector remains competitive in the global market while adhering to environmental standards.
Why was the Integrated Processing Development Scheme launched?
The textile processing sector in India is a crucial part of the textile value chain. It faces several challenges:
- Water scarcity
- Environmental pollution
- Outdated technology
- Limited infrastructure
The IPDS was launched to address these challenges by:
- Setting up new processing parks with advanced and eco-friendly technology.
- Upgrading existing textile clusters with better infrastructure.
- Promoting research and development for sustainable processing solutions.
- Ensuring compliance with Zero Liquid Discharge (ZLD) and marine discharge standards.
What are the Objectives of IPDS?
The main objectives of the Integrated Processing Development Scheme are:
- Promote environmental sustainability – Encourage the adoption of water-efficient and eco-friendly textile processing technologies.
- Boost productivity – Modernize brownfield projects and create new greenfield projects for higher efficiency.
- Enhance global competitiveness – Help Indian textile units meet international standards and export quality requirements.
- Develop common infrastructure – Establish wastewater treatment plants, captive power generation units, and testing laboratories in textile clusters.
- Support research and development (R&D) – Foster innovation and technology adoption within the textile processing sector.
What Types of Projects are Covered Under IPDS?
IPDS supports two major types of projects:
| Aspect | Brownfield Projects | Greenfield Projects |
| Definition | Upgrading and modernizing existing textile processing facilities | Setting up entirely new textile processing parks in areas with no prior infrastructure |
| Focus Areas | – Water treatment plants – Effluent treatment systems – Renewable energy integration | – New effluent treatment plants (ETPs) – Testing laboratories & R&D centers – Renewable/captive power generation units |
| Objective | Improve productivity and ensure compliance with environmental standards in existing units | Create new infrastructure to expand textile processing capacity and promote industrial growth in new areas |
| Example | Expanding or modernizing an existing textile processing unit | Establishing a new textile park in a district with limited industrial infrastructure |
How does IPDS Manage Environmental Challenges in Textile Processing?
The textile processing industry generates large amounts of wastewater, chemicals, and solid waste. IPDS addresses these issues through:
- Wastewater Management: Establishing common effluent treatment plants (CETPs) to treat wastewater efficiently.
- Zero Liquid Discharge (ZLD): Promoting the adoption of ZLD technology, which ensures no untreated effluents are released into rivers or the sea.
- Water Supply Systems: Ensuring adequate and timely water supply to textile units to reduce dependency on scarce water resources.
- Solid Waste Management: Facilitating proper disposal or reuse of solid waste generated during textile processing.
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How is IPDS Funded?
The funding mechanism for IPDS is designed to encourage public-private partnerships while sharing the financial risk.
Funding Pattern of IPDS
| Contributor | Share of Project Cost | Special Notes |
| Government of India (GoI) | 50% | Maximum ceiling: ₹75 crore (ZLD/Marine discharge), ₹10 crore (Conventional treatment) |
| State Government | 25% | Released during the second installment of GoI grant |
| Beneficiary Contribution | 15% | Must be contributed upfront |
| Bank Loan | 10% | Arranged through financial institutions |
Release of GoI Grant
| Installment | Percentage of Grant | Condition |
| 1st Installment | 50% | After beneficiary contribution is made |
| 2nd Installment | 30% | When the plant becomes operational |
| 3rd Installment | 20% | After 3 years of successful functioning |
Important Note: Land costs are excluded from project cost and are to be procured by the SPV or implementing agency.
What is a Special Purpose Vehicle (SPV) in IPDS?
A Special Purpose Vehicle (SPV) is a corporate entity established to implement and manage IPDS projects. SPVs are central to the operational structure of the scheme and are responsible for:
- Conceptualizing and planning the project.
- Procuring land for the project (land cost is not funded).
- Achieving financial closure by arranging equity, government grants, and bank loans.
- Implementing and managing infrastructure, including CETPs, water supply, and testing labs.
- Appointing contractors, Project Management Agencies (PMAs), and Operation & Maintenance (O&M) agencies.
- Maintaining statutory licenses and regulatory compliance.
SPVs are typically joint ventures between industrial units, state governments, and financial institutions.
Which Agencies are Involved in IPDS Implementation?
IPDS is implemented through a multi-tiered structure of agencies:
| Agency | Function |
| Project Management Consultant (PMC) | Advises Ministry of Textiles, monitors projects, and evaluates proposals |
| Special Purpose Vehicle (SPV) | Main implementing body; develops, operates, and manages processing parks |
| Project Management Agency (PMA) | Assists SPVs in project planning and implementation |
| Project Scrutiny Committee (PSC) | Headed by Joint Secretary, evaluates project feasibility |
| Project Approval Committee (PAC) | Headed by Secretary of Textiles; provides administrative support |
| Operation & Maintenance (O&M) Agency | Ensures professional maintenance of assets for at least 15 years |
State governments also play a key role by providing approvals, land, labor, and additional support.
What Facilities are Established Under IPDS?
IPDS projects are grouped into three categories based on the type of infrastructure they support:
| Group | Facilities Covered |
| A | Water treatment and effluent treatment plants, ZLD, marine and riverine discharge systems |
| B | Common infrastructure like captive power plants, including renewable energy systems |
| C | Common facilities such as testing laboratories and R&D centers |
The scheme plans to establish 4-6 brownfield projects and 3-5 greenfield projects in key textile clusters across India.
What are the Benefits of the Integrated Processing Development Scheme?
The IPDS offers multiple benefits to the textile industry and the environment:
- Boost productivity: Modern processing units improve output and reduce downtime.
- Eco-friendly technology: Adoption of ZLD and wastewater management systems reduces pollution.
- Global competitiveness: Helps Indian textile units meet international quality standards.
- Increased private investment: Encourages collaboration between government and private sectors.
- Research & Development: Promotes innovation in sustainable textile processing.
Key Takeaways
| Topic | Key Point |
| Scheme Name | Integrated Processing Development Scheme (IPDS) |
| Launch Date | 31st October 2013 |
| Launching Authority | Ministry of Textiles, Government of India |
| Approval | Cabinet Committee on Economic Affairs (CCEA) |
| Total Cost | ₹500 crore |
| Type | Centrally Sponsored Scheme |
| Main Objectives | Eco-friendly technology, global competitiveness, R&D, common infrastructure |
| Project Types | 4-6 Brownfield, 3-5 Greenfield projects |
| Funding Pattern | GoI 50%, State 25%, Beneficiary 15%, Bank 10% |
| Agencies Involved | SPV, PMC, PMA, PSC, PAC, O&M Agency |
| Benefits | Productivity, environmental compliance, global competitiveness, private investment |
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Questions on IPDS
Q1. When was the Integrated Processing Development Scheme (IPDS) launched?
A. 2005
B. 2010
C. 2013
D. 2015
E. 2018
Q2. Which ministry is the nodal authority for IPDS?
A. Ministry of Environment
B. Ministry of Commerce
C. Ministry of Textiles
D. Ministry of Finance
E. Ministry of MSME
Q3. What is the primary objective of IPDS?
A. Promote e-governance
B. Modernize textile processing and ensure eco-friendly technology
C. Provide employment to rural artisans
D. Increase cotton production
E. Subsidize garment exports
Q4. What is a Greenfield project under IPDS?
A. Upgrading an existing unit
B. Building new infrastructure where none existed
C. Procuring land for SPV
D. Providing bank loans
E. Establishing a textile college
Q5. Maximum GoI grant for projects with ZLD systems is:
A. ₹10 crore
B. ₹25 crore
C. ₹50 crore
D. ₹75 crore
E. ₹100 crore
Q6. Which agency is responsible for project feasibility evaluation?
A. SPV
B. PMC
C. PSC
D. PAC
E. O&M Agency
Q7. How many brownfield projects are planned under IPDS?
A. 1-2
B. 3-4
C. 4-6
D. 7-8
E. 10
Q8. Which of the following is NOT funded under IPDS?
A. Effluent Treatment Plant
B. Testing laboratory
C. Land procurement
D. Water supply system
E. Captive power generation
Q9. Which technology ensures no untreated effluent is discharged?
A. RO
B. ZLD
C. ETP
D. CETP
E. Reverse Osmosis
Q10. Who appoints the Project Management Agency (PMA) under IPDS?
A. Ministry of Textiles
B. SPV
C. State Government
D. PAC
E. PSC
Answer Key:
| Question No. | Answer |
| Q1 | C |
| Q2 | C |
| Q3 | B |
| Q4 | B |
| Q5 | D |
| Q6 | C |
| Q7 | C |
| Q8 | C |
| Q9 | B |
| Q10 | B |
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