Recently, Global Textile Conclave was inaugurated and the Government has stated that the states identified for PM-Textile scheme are to be named soon. The challenge route is applied for the identification of the states.
Note: Vision 2030- The Government is also aiming to achieve an economic value of $250 billion in the production and $100 billion in the export of textiles, apparel and related products by the year 2030.
About the Schemes mentioned in the news:
PM-MITRA Scheme- Mega Integrated Textile Region & Apparel Parks scheme.
The PM MITRA Scheme was announced in the Union Budget 2021-22. The scheme enables the textile industry to become globally competitive, attract large investments, boost employment generation and exports.
DETAILS ABOUT PM MITRA SCHEME Vision:
5F vision- The ‘5F’ Formula encompasses – Farm to fibre; fibre to factory; factory to fashion; fashion to foreign.
Scope: Set up 7 PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites in partnership with the willing State Governments.
Nature of Incentives:
Incentives to MITRA Parks: Government to provide capital support of 30% of the project cost in Greenfield/Brownfield parks. The support would lead to creation of Core Infrastructure such as Developed Factory Sites, Plug & Play facility, Incubation Centre, Roads, Power, Water and Wastewater system etc.
Incentives to Industries: Up to 3% of the total sales turnover. This is only available to those manufacturing companies who are not availing benefits under Textile PLI scheme. Operational Model: Public Private Partnership (PPP) model based on Design-Build-Finance-Operate-Transfer (DBFOT) format.
Significance: Reduce Logistics Cost: The logistics cost accounts for 12-14% of the GDP, which is higher in comparison to global benchmarks. The PM MITRA Scheme will reduce logistics cost and strengthen the value chain of the textile sector making it globally competitive.