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Textile Industry Workers’ Hostel Scheme

Name of the scheme: Textile Industry Workers’ Hostel

Purpose:  The main purposes are-

  • Provide a safe and secured accommodation for the workforce.
  • Ensure better retention of the work force by way of decent accommodation in/vicinity of the textile parks, thereby improving the productivity.


The Project aims to establish workers’ hostel for the workers of textile industry with the support of Ministry in /in the vicinity (with in 5 kms radius of the park) through grant assistance from MoT.

Project Components:

The eligible components of the project include the following:

  1. Buildings for workers comprising of dormitories for a minimum of 250 workers (150 workers for NE & J&K) and maximum for 1000 persons with built up area @125 sqft/capita. A dormitory can house a maximum of six persons.
  2. Common Facilities like kitchen, dining hall, store, recreation rooms, sports infrastructure, visitor’s room, etc.
  3. External Infrastructure including water supply, power supply, generator etc.
  4. Furniture and Fixtures including room furniture/furnishing/kitchen hardware etc. not exceeding 30% of the cost of Buildings as given under point (a) and (b) above
  5. Project Cost under this Scheme shall be the total cost of the components from (a) to (d) above.


The Workers’ Hostel however will have to follow the minimum standards in terms of living space per worker, toilet facilities, water supply and common rooms, as prescribed under National Building Code.

Project Implementing Agencies (PIAs):

The following organizations will be eligible to submit proposals under the Scheme and will function as PIA’s:

  • The SPV’s set up under SITP where a minimum of 25% units are operational and where the approved DPR of the ITP does not include components provided under this scheme.
  • The SPVs promoted under the other schemes Ministry of Textiles viz., TCIDS, APES, etc.
  • State Industrial Development Corporations.
  • SPV’s of Textile Parks promoted by State governments/UTs.
  • Developers of SEZs. vi. Industry Associations or groups of Entrepreneurs.

Grant Assistance:

  • Maximum grant will be limited to 50% of the total project cost per project subject to a limit of Rs. 3 Crore for each hostel with built up area @ 125 sq ft per capita.
  • The PIA can built hostels for a maximum of 1000 workers.
  • The cost of Land will not be considered in the project cost.

Release of grant:

The grant will be released in three installments with 1/3 of the total grant will be disbursed in 1st installment.

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