PM-MITRA Parks: Cabinet approves setting up of 7 mega textile parks with outlay of Rs. 4,445 crores

The Union Cabinet on October 6, 2021, gave its approval to set up 7 Mega Integrated Textile Region and Apparel (PM-MITRA) Parks with a total outlay of Rs. 4,445 crores over the period of 5 years. The parks will help to position India strongly on the global textiles map.

PM-MITRA Parks was announced in the Union Budget 2021-22. According to the official release, the proposals of state governments having ready availability of contiguous and encumbrance-free land parcels of 1,000 plus acres along other textiles related facilities ecosystem are welcome.

The Union Textiles Minister Piyush Goyal, while giving details about the decision taken at the Union Cabinet meeting, said that 10 states have already shown interest in setting up the mega textile parks.

The 10 states are namely- Punjab, Odisha, Tamil Nadu, Gujarat, Andhra Pradesh, Assam, Rajasthan, Telangana, and Madhya Pradesh.

Modi Govt’s landmark decision to empower Textiles sector.

Approval for 7 Mega Integrated Textile Region & Apparel (PM MITRA) Parks. ₹ 4,445 Cr outlay for #PMMitra4Textiles in 5 yrs to enable:

🏭World class infrastructure

🧵 21 lakh jobs

📈 More production & export led growth pic.twitter.com/6dTLb5NzyI

— Piyush Goyal (@PiyushGoyal) October 6, 2021

PM-MITRA Parks: Significance

• PM-MITRA Parks will create direct employment for 7 lakh people and indirect employment for 14 lakh people.

• The mega textile parks will offer an opportunity to create an integrated textile value chain right from weaving, spinning, printing, processing/dyeing to garment manufacturing in one place.

• An integrated textile value chain at one location in the country will also help in reducing the logistics cost of the industry.

7 Mega Integrated Textile Region and Apparel (PM-MITRA) Parks: Key details

• PM-MITRA Parks will be set up at greenfield/brownfield sites that will be located in different willing states.

• The sites of the park will be selected by a Challenge Method based on objective criteria.

• Maximum Development Capital Support of Rs. 500 crores to all the greenfield parks and a maximum of Rs. 200 crores to the brownfield ones will be provided for the development of common infrastructure.

• 300 crores of the Competitiveness Incentive Support (CIS) will also be provided to each park for the early establishment of the textiles manufacturing unit.

• Under PM-MITRA Yojana, 50% area will be developed for pure manufacturing activity, 20% area for utilities, and 10% of the area for commercial development.

• The convergence with other Central and State Government Schemes will also be available. It will enhance the competitiveness of the textile industry.

Development of PM-MITRA Parks in India

As per the official release, the 7 PM-MITRA parks will be developed by a Special Purpose Vehicle (SPV) which will be owned by State and Central Government in a public-private partnership.

It added that Master Developer will not only develop the Industrial Park but will also maintain it during the concession period. The Master Developer will be selected on the basis of objective criteria developed jointly by State and Central Governments.

The Special Purpose Vehicle, in which the State Government will have majority ownership, will be entitled to receive part of the lease rental from developed industrial sites. SPV will be able to use that for the further expansion of the textile industry by expanding PM-MITRA park, providing skill development initiatives, and other measures.