Govt. setup seven mega textile parks at Rs 4,445 cr under PM MITRA scheme

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admin November 10, 2021
Updated 2021/11/10 at 1:40 PM

The government has announced plans to build seven mega textile parks under the PM-MITRA project, with a total investment of Rs 4,445 crore with the goal of creating one lakh direct and two lakh indirect employment for each park.

The seven PM Mega Integrated Textile Region and Apparel (PM-MITRA) parks will be built on greenfield (new) and brownfield (existing) locations around the country.

According to an official release, “proposals from state governments with the ready availability of contiguous and encumbrance-free land parcels of over 1,000 acres, as well as other textiles-related infrastructure and ecosystems, are invited.”

According to the textile ministry, the world-class industrial infrastructure would attract cutting-edge technologies and enhance FDI and domestic investment in the industry.

The parks will allow for the creation of an integrated textiles value chain from spinning through weaving, processing/dyeing, printing, and garment production all in one area.

On Thursday, the textiles ministry announced the establishment of the seven PM-MITRA parks, which were announced in the Union Budget 2021-22 and authorised by the federal government.

According to the statement, these parks would be built in areas with natural strength for the textile sector to thrive and the required links to succeed.

The GOI development capital assistance for a greenfield PM-MITRA park would be 30% of the project cost, with a ceiling of Rs 500 crore, according to the textile ministry.

It claimed that for brownfield sites, development capital assistance will be provided at 30% of the project cost of balance infrastructure and other support facilities to be created, with a ceiling of Rs 200 crore. The state government will provide 1,000 acres of land for the establishment of a world-class industrial park.

Several states have shown interest, including Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh, and Telangana, according to the government.

Each PM-MITRA park would also get a competitiveness incentive support (CIS) of Rs 300 crore for the early creation of textile manufacturing units.

In a public-private partnership (PPP) model, the park will be created by a special purpose entity that will be jointly controlled by the state government and the Indian government.

According to the government, the master developer would not only build the industrial park but also manage it throughout the concession time. The master developer will be chosen based on objective criteria devised collaboratively by the state and federal governments, according to the statement.

The SPV, which is majority-owned by a state government, will be entitled to a portion of the lease rental from developed industrial lands. It will be able to utilise the funds to boost the textiles sector in the region by extending the park, implementing skill development projects, and offering other worker benefits.

The PM-MITRA initiative intends to realise Prime Minister Narendra Modi’s goal of creating an Aatmanirbhar Bharat and to strengthen India’s standing in the global textiles industry.

The plan comprises the creation of an integrated large-scale and contemporary industrial infrastructure facility for the textile industry’s full value chain. It will save logistical costs and boost Indian textiles’ competitiveness.

“The plan would assist India in attracting investments, increasing job creation, and establishing a strong position in the global textile industry,” the ministry said.

It stated that full instructions for the project are being prepared, following which bids would be sought from willing state governments.

 

Source: Business Standard

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