Govt notifies setting up of 7 mega textile parks under PM-MITRA scheme

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The government has issued a notification for setting up seven mega textile parks under the PM-MITRA scheme at a total outlay of Rs 4,445 crore, with an intension to generate about one lakh direct and two lakh indirect jobs per park.

"The seven PM Mega Integrated Textile Region and Apparel (PM-MITRA) parks will be set up at greenfield (fresh)/ brownfield (existing) sites located in different willing states.

"Proposals of state governments having ready availability of contiguous and encumbrance-free land parcel of over 1,000 acres along with other textiles related facilities and ecosystem are welcome," according to an official statement.

The textile ministry further stated that the world-class industrial infrastructure will attract cutting-age technology and boost FDI and local investment in the sector.

The parks will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location.

The textiles ministry issued the notification on Thursday to set up the seven PM-MITRA parks as announced in the Union Budget 2021-22 and approved by the central government.

These parks are envisaged to be located at sites that have inherent strength for the textile industry to flourish and have necessary linkages to succeed, the statement said.

For a greenfield PM-MITRA park, the GOI development capital support will be 30 per cent of the project cost, with a cap of Rs 500 crore, the textile ministry stated.

For brownfield sites, after assessment, development capital support at 30 per cent of project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs 200 crore, it said. The state government supports will include provision of 1,000 Acre land for development of a world-class industrial estate.

Several states such as Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana have expressed interest, the ministry stated.

Competitiveness incentive support (CIS) of Rs 300 crore will also be provided to each PM-MITRA park for early establishment of the textiles manufacturing units.

The park will be developed by a special purpose vehicle to be owned by the state government and the Government of India in a public-private partnership (PPP) mode.

The master developer will not only develop the industrial park but also maintain it during the concession period, the ministry stated. Selection of this master developer will happen based on objective criteria developed jointly by state and central governments, it added.

The SPV, in which a state government has majority ownership, will be entitled to receive part of the lease rental from developed industrial sites. It will be able to use that for further expansion of the textiles industry in the area by expanding the park, providing skill development initiatives and other welfare measures for workers.

The PM-MITRA scheme aims to realise Prime Minister Narendra Modi's vision of building an Aatmanirbhar Bharat and to position India strongly on the global textiles map.

The scheme entails developing integrated large-scale and modern industrial infrastructure facility for entire value-chain of the textile industry. It will reduce logistics costs and improve competitiveness of Indian textiles.

"The scheme will help India in attracting investments, boosting employment generation and position itself strongly in the global textile market," the ministry stated.

The detailed guidelines for the scheme is under preparation, after which the proposals will be invited from the willing state governments, it added.