NE BUSINESS BUREAU
NEW DELHI, OCT 6
The Union Cabinet on Wednesday approved PM MITRA (Mega Integrated Textile Region and Apparel) parks scheme for the textile sector to set up seven integrated textile parks in the country, as announced in Union Budget for 2021-22.
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 (मोदी का परिवार) (@PiyushGoyal) October 6, 2021
The scheme will have a total outlay of Rs 4,445 crore over a period of five years. Under the scheme, MITRA parks will be developed by a special purpose vehicle, owned by state government and Centre, in public-private partnership mode. The parks will be set up at greenfield and brownfield sites in willing states.
Briefing the Media on Cabinet decisions
https://t.co/gVm1YochXr— Piyush Goyal (मोदी का परिवार) (@PiyushGoyal) October 6, 2021
“Proposals of state governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textiles related facilities and ecosystem are welcome,” the government said in a release.
- PM MITRA is inspired by the 5F vision of Prime Minister -Farm to Fibre to Factory to Fashion to Foreign
- World-class industrial infrastructure would attract cutting age technology and boost FDI and local investment in the sector
- PM MITRA will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at 1 location
- Integrated Textile Value chain at 1 location will reduce logistics cost of Industry
- Intended to generate 1 lakh direct and 2 lakh indirect employment per park
- Several states such as Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana have expressed interest
- Sites for PM MITRA will be selected by a Challenge Method based on objective criteria
The Centre is in talks with the states for the scheme and 10 states have already shown interest, Union Textile Minister Piyush Goyal said while apprising the media about the Cabinet decisions. Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana are among the states which have evinced interest in the scheme.
The Centre will provide support of up to Rs 500 crore each to greenfield parks and up to Rs 200 crore each for brownfield parks under the scheme for development of common infrastructure. Besides, Rs 300 crore will also be provided as Competitiveness Incentive Support (CIS) to each PM MITRA park for early establishment of textile manufacturing units.
The textile parks will have an incubation centre and plug & play facility, developed factory sites, roads, power, water and wastewater system, common processing house and other related facilities, like design centre, testing centres. They will also have support infrastructure like workers’ hostels & housing, logistics park, warehousing, medical facilities and training and skill development facilities.
The parks will have 50 per cent area for pure manufacturing activity, 20 per cent for utilities, and 10 per cent for commercial development.
The parks will offer an opportunity to create an integrated textile value chain, right from spinning, weaving, processing/ dyeing and printing to garment manufacturing, at one location. World-class industrial infrastructure would attract cutting age technology and boost FDI and local investment in the sector, the release said.
Besides, integrated textile value chain at one location will reduce logistics cost of the industry.
The parks will also be eligible for other Central and state government schemes as per their eligibility under the guidelines of those schemes.
“This 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. Leveraging economies of scale, the scheme will help Indian companies to emerge as global champions,” the government said.
The PM MITRA scheme is expected to create direct employment for 7 lakh people and indirect employment for 14 lakh people, Goyal said.
