India to Allocate ₹ 4,445 Cr to Setup Mega Integrated Textile Parks
The Indian Cabinet has approved a proposal for setting up seven Mega Integrated Textile Region and Apparel (PM MITRA) parks with a total outlay of ₹ 4,445 crore over 5 years.
PM MITRA parks were announced in the Union Budget for 2021-22.
Announcing the Cabinet resolution following the meeting chaired by PM Modi, Union Minister for Commerce and Industry Piyush Goyal mentioned that PM MITRA parks are inspired by the 5F i.e ‘Farm to Fibre to Factory to Fashion to Foreign’ vision of Hon’ble Prime Minister and are in line with Aatmanirbhar Bharat.
Development Model of India’s Mega Integrated Textile Parks
The Mega Integrated Textile Region and Apparel parks will be developed by a Special Purpose Vehicles (SPV) to be owned by state government and the Central Government through a Public-Private Partnership (PPP) mode.
Mega Integrated Textile Region and Apparel parks shall have 50% area for pure manufacturing activity, 20% area for utilities, 10% of area for commercial development, 10% for housing, 5% for training activity, and 5% area for logistics.
These textile parks will be set up as greenfield / brown-field projects located in different states.
A Development Capital Support will be provided by Govt of India for each of these mega textile parks. This is to be seen as a viability gap funding to support the projects and make them attractive for private sector participation.
For a Greenfield PM MITRA park the development capital support will be capped at ₹ 500 crore (or 30 percent of the project cost). Similarly for brownfield sites, after assessment, development capital support at 30 percent of project cost of balance infrastructure and other support facilities to be developed will be provided. However the development capital support for brownfield projects will be capped to ₹ 200 crore.
Also, ₹ 300 crore of Competitiveness Incentive Support (CIS) will be provided to each park for the early establishment of textiles manufacturing units.
Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Madhya Pradesh, Karnataka, and Telangana have already shown interest in the development of the parks.
Mega Integrated Textile Parks to Bring India on Global Textile Map
PM MITRA parks shall position India strongly on the global textiles map and help Indian companies emerge as global leaders. These parks shall build World-class industrial infrastructure with the latest technology, hence help in boosting FDI and local investment in the sector. PM MITRA parks are expected to generate approximately 1 lakh direct and 2 lakh indirect employment per park.
