Centre has selected sites to set up new textile parks, a year and a half after the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme was announced.
More about News:
The Indian government has selected sites in seven states to establish new textile parks under the PM Mega Integrated Textile Regions and Apparel scheme. The parks will offer state-of-the-art infrastructure for the textile sector and generate investment and jobs. The initiative will be a model of the government’s ‘Make in India’ and ‘Make for the World’ policies, and is expected to attract INR70,000 crore ($9.3bn) of investment and provide jobs for 20 lakh (2 million) people. The parks will offer a complete textiles value chain, from spinning to garment manufacturing, all in one location. To provide extra benefits to the master developer and investor units, the facilitation of convergence with other Government of India schemes will also be ensured.
About PM MITRA Scheme:
- PM MITRA (Mega Integrated Textile Region and Apparel) Scheme was launched in 2021 by Ministry of Textiles to strengthen the Indian textile industry with a total outlay of ₹4,445 crore for five years.
- The aim is to develop integrated large scale and modern industrial infrastructure facility for entire value-chain of the textile industry.
- It is inspired by 5F Vision i.e. Farm to fibre; fibre to factory; factory to fashion; fashion to foreign.
- Scope: Setup 7 (PM MITRA) Parks in Greenfield/Brownfield sites in partnership with the willing State Governments.
- Incentives to MITRA Parks:
- For a Greenfield PM MITRA park, Development Capital Support will be 30% of the Project Cost, with a cap of ₹500 Cr.
- For Brownfield sites, Development Capital Support @30% of project cost of balance infrastructure with a cap of Rs. 200 Crore.
- A Competitive Incentive Support (CIS) up to ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation.
- PM MITRA park will be developed by a Special Purpose Vehicle which will be owned by State Government and Government of India in a Public Private Partnership (PPP) Mode. SPV will focus on expanding the PM MITRA Park, Skill Development of workers and other Welfare measures.
Significance of PM MITRA Scheme:
- It will enhance the competitiveness of the textiles industry, by helping it in achieving economies of scale and will create huge job opportunities for millions of people and it will help Indian companies to emerge as Global Champions.
- It will further help in reducing the logistics cost by developing large scale integrated value chain.
- World-class industrial infrastructure would attract cutting age technology and boost FDI and local investment in the textiles sector.
- It is envisaged to help India in achieving the United Nations Sustainable Development Goal 9 (“Build resilient infrastructure, promote sustainable industrialization and foster innovation”).
The PM MITRA will serve as a unique model to foster collaboration between the Central and State governments to enhance investment, encourage innovation, generate employment prospects, and ultimately establish India as a global hub for textile manufacturing and exports.