Cabinet OKs ₹4,445-cr Plan for 7 Textile Parks

The Cabinet approved the setting up of seven Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) Parks with a total outlay of ₹4,445 crore for five years.

“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 one location,” said textiles minister Piyush Goyal, adding that this will reduce logistics cost of industry.

At present, the entire value chain of textiles is scattered and fragmented in different parts of the country. While cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu and processing happens in Rajasthan and Gujarat. The NCR, Bengaluru and Kolkata are key for garnering whereas exports are done from Mumbai and Kandla. First announced in Budget 2021-22, each park will generate around 100,000 direct and 200,000 indirect jobs.

The seven MITRA parks will be set up at greenfield and brownfield sites located in different willing states and would be developed by a special purpose vehicle owned by state governments and the central government in the public-private partnership mode. The sites for the parks will be selected by a ‘challenge method’ based on objective criteria. Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana have expressed interest in setting up the parks.

However, states need to have ready availability of contiguous and encumbrance-free land parcels of above 1,000 acres along with other textiles related facilities and ecosystems.

For a greenfield park, the Centre’s Development Capital Support will be 30% of the project cost, with a cap of ₹500 crore. For brownfield sites, after assessment, the support of 30% of project cost of balance infrastructure and other support facilities to be developed will be capped at ₹200 crore. “This is in the form of viability gap funding to make the project attractive for participation of the private sector,” the textiles ministry said.

The Centre will also provide ₹300 crore for each park to incentivize manufacturing units to get established. This will be known as Competitiveness Incentive Support and would be paid up to 3% of turnover of a newly established unit.

“Such support is crucial for a new project under establishment which has not been able to break even and needs support till it is able to scale up production and be able to establish its viability,” the government said.

The core infrastructure of each park includes incubation centre and plug & play facility, developed factory sites, roads, power, water and waste water system, and common processing house. The support infrastructure includes workers’ hostels & housing, logistics park, warehousing, medical, training and skill development facilities.

Each park is to have 50% area for pure manufacturing activity, 20% area for utilities, and 10% for commercial development.

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