The Union Cabinet on Wednesday gave its nod for setting up for 7 Mega Integrated Textile Region and Apparel Parks (PM MITRA) with a total outlay of ₹4,445 crore over a period of five years. This was first announced in the Budget this year.
Union Minister Piyush Goyal said that ten States — Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana — have already expressed interest. He added that the parks have a huge potential to create new employment opportunities and are expected to generate seven lakh direct and 14 lakh indirect jobs.
Integrated value chain
The government aims to develop the PM Mitra Parks to create an integrated textiles value chain right from spinning to processing, and printing to garment manufacturing at one location and boost FDI and local investment in the textiles sector. These parks will be set up as greenfield or brownfield sites in different States.
“Maximum development capital support (DCS) of ₹500 crore to all greenfield parks and a maximum of ₹200 crore to brownfield parks will be provided for development of common infrastructure (@ 30 per cent of the project cost) and ₹300 crore of competitiveness incentive support (CIS) will also be provided to each PM MITRA park for early establishment of textiles manufacturing units,” an official statement added.
This is in the form of viability gap funding to make the project attractive for participation of the private sector, it added.
Government support
The Centre will also provide a fund of ₹300 crore for each PM MITRA Park to incentivise establishment of manufacturing units. “This will be known as competitiveness incentive support (CIS) and will be paid up to 3 per cent of turnover of a newly established unit in the parks,” it added.
Meanwhile, State government support will include availability of “contiguous and encumbrance-free land parcel of over 1,000+ acres” along with other textiles related facilities and ecosystem.
These parks will be developed by a special purpose vehicle owned by State governments and Central government in a public-private partnership. A master developer will be selected on an objective criteria developed by the State and Central Government and will not only develop the industrial park, but also maintain it during the concession period.