NE BUSINESS BUREAU
CHENNAI, MAR 21
Day after Tamil Nadu has announced various schemes to benefit the textile sector in 2023-24 Budget, Tamil Nadu Chief Minister MK Stalin and Union Commerce Minister Piyush Goyal will virtually launch India’s first PM Mitra Park in the southern district of Virudhunagar. The launch ceremony will be held at Anna Centenary Library here on Wednesday.
- CM urges PM to implement the Integrated textile park project through State government run SIPCOT in Tamil Nadu.
- 1,052 acres of land have been kept in SIPCOT’s possession, so the company is ready to implement the Integrated textile park project here immediately
- The launch ceremony will be held at Anna Centenary Library here on Wednesday.
- PM MITRA Parks inspired by the 5F vision of Hon’ble Prime Minister – Farm to Fibre to Factory to Fashion to Foreign
- Park 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
- World-class industrial infrastructure would attract cutting edge technology and boost FDI and local investment in the sector
- Integrated Textile Value chain at one location in each park will reduce logistics cost of Industry
- Centre and States to form SPVs in JV mode for setting up PM MITRA Parks
According to TN Finance Minister PTR Palanivel Thiagarajan the New industrial parks will be set up by State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in Vellore, Kallakurichi and Coimbatore, including a Rs 1,800 crore park in Virudhunagar under the PM MITRA mega textile park scheme.
Incidentally, Tamil Nadu Chief Minister MK Stalin had on Saturday written a letter to Prime Minister Narendra Modi and Union Commerce Minister Piyush Goyal thanking them for announcing to set up the Prime Minister’s Mega Integrated Textile Region and Apparel (PM MITRA) park at E Kumaralingapuram in Virudhunagar district and requested them to implement the Integrated textile park project through State-government run SIPCOT in Tamil Nadu.
SIPCOT, the agency responsible for development of industrial parks in our state has a solid track record & proven capacity.
Hence I request Hon @PMOIndia & @PiyushGoyal to permit SIPCOT to be the Master Developer of PM MITRA Park as we can take up the implementation immediately. pic.twitter.com/sNmJ39LMGb
— M.K.Stalin (@mkstalin) March 18, 2023
In the letter, CM stated, “Thankful for choosing E Kumaralingapuram village in Virudhunagar district to set up PM MITRA mega textiles park in Tamil Nadu. The Southern districts of the State will greatly benefit from the development of the park. 1,052 acres of land have been kept in its possession, so the company is ready to implement the Integrated textile park project here immediately.”
The Chief Minister also pointed out that State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has established large industrial parks in Tamil Nadu and has established 28 industrial parks on 38,522 acres in the State, with 2,890 companies and 3,94,785 employees.
He also added that the Tamil Nadu government strongly believes that the objectives of the project can be successfully achieved if PM MITRA park is implemented through SIPCOT.
“On the other hand, the development of large industrial parks by private developers in Tamil Nadu has had limited success. Hence, I request that the Government of India may permit SIPCOT to be the master developer of the PM MITRA Park in Tamil Nadu, as they already have the land in their ownership and possession and have a solid track record in the implementation of industrial parks. Such a dispensation is already envisaged in the scheme guidelines. I would be grateful if my request is considered favourably,” Stalin said.
Union Minister of State for Textiles Darshana Jardosh, MoS for IB Dr L Murugan, TN Minister for Revenue and Disaster Management KKSSR Ramachandran, TN Industries and Investment Promotion Thangam Thennarasu and TN Minister for Handloom Development & Textiles R Gandhi will also grace the occasion.
Southern India Mills’ Association welcomes Budget announcements
⇐ Ravi Sam, chairman, The Southern India Mills’ Association (SIMA), has welcomed the announcement of new industrial parks in the clusters of Virudhunagar, Vellore, Kallakurichi, and Coimbatore at an estimated cost of ₹410 crore for providing employment opportunities to nearly 22,000 people.
Modi announced Friday that ‘PM MITRA mega textile parks’ will be set up in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh, and asserted they will attract massive investments and create lakhs of jobs.
PM MITRA Park to open vistas of opportunity for investment and exports in the textile sector: Dr A Sakthivel, President FIEO
Read FIEO Press Release at https://t.co/ZTnvP2c3vP@PMOIndia @narendramodi @PiyushGoyal @PiyushGoyalOffc @TexMinIndia @AnupriyaSPatel @dgftindia pic.twitter.com/9HHc9so5YG
— FIEO (@FieoHq) March 17, 2023
Salient features
- At least 50% area reserved for Manufacturing Zone – caters to the entire value chain from spinning to RMG /Anchor and ancillary units, including plug and play
Plug and Play
- Core and supporting infrastructure to be provided in the park; all necessary clearances to be provided
common utilities and infrastructure – Roads, CETP, STP, WTP, Sub-station, Boiler units etc. all provided for
logistics zone – social infrastructure and commercial spaces also provided. - 10% Commercial development also allowed
- Plug and play infrastructure will all clearances readily available- this will significantly cut the time to start operations
- MITRA Parks will offer the opportunity to create an Integrated Textiles Value Chain right from spinning, weaving, processing, and printing to garment manufacturing, accessories making at one location reducing logistics & transaction costs
- Man-made Fibre (MMF) and Technical Textiles are also expected to be a significant component of the new investment
Convergence with other government schemes
- Nearly Rs 10,000 crore investment per park, including FDI expected
- Creation of 1 lakh direct and 2 lakh indirect job creation in each park.
- PM MITRA parks will make Indian textile sector more competitive globally. This will create more jobs and increase exports.
- Will help India’s textile sector reach a size of US $ 250 bill and exports of US $ 100 bill by 2030
- Benefits for every segment of textile value chain through modernisation, scale and skilled work force
- Help India in achieving the United Nations Sustainable Development Goal 9 (“Build resilient infrastructure, promote sustainable industrialization and foster innovation”).
- Envisaged as a cooperative effort between the Central and the State governments
- An SPV- a JV of Centre and State Government will be responsible for Implementing the scheme in each state
- The SPV will appoint a Master Developer (MD) for designing and master planning, building, financing, operating and maintaining the MITRA Park
Support of the State government
- State governments will not just ensure availability of encumbrance-free land parcel of at least 1000 acres of land
- Will also facilitate provision of all utilities, Reliable Power Supply and Water availability. Waste Water Disposal system
An effective single window clearance
- Conducive and stable industrial/textile policy.
- All sites selected through an intensive and competitive process- Challenge method using transparent criterion
- Budget outlay of ₹ 4445 Crore over a 7-year period up to 2027-28
