Aggressive roll-out of PM MITRA to help attract large investments, FDI in textiles, say experts

In addition to creating a great deal of jobs, the aggressive plan to build seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks quickly will aid in drawing significant capital, including foreign direct investment (FDI), into the industry, according to industry analysts.

Among the states where parks are being constructed are Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra. An estimated Rs 70,000 crore in investment and the generation of 20 lakh employment are projected through these parks.

The projects are being carried out under the supervision of the Union Ministry of Textiles. For each park, a special purpose vehicle (SPV) controlled by the Central and State Governments is being established to supervise the project’s execution.

Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council (AEPC), said the PM MITRA parks seek to address the traditional as well as emerging challenges that the textiles industry has been facing for a long time.

Chairman of Confederation of Indian Textile Industry (CITI) Rakesh Mehra opined that the PM MITRA scheme has been one of the pioneering initiatives for capacity building and attracting new investments.

PM MITRA parks will offer an opportunity to create an integrated textiles value chain and encourage capacity additions in the segment, ICRA said in its report on apparel and fabrics. A Competitive Incentive Support (CIS) up to Rs 300 crore per park to the units in PM MITRA park shall also be provided to incentivise speedy implementation. Convergence with other GOI schemes shall also be facilitated to ensure additional incentives to the Master Developer and investor units.

The State Governments in the areas where the parks will be established are required by the project to provide contiguous, encumbrance-free land parcels measuring at least 1,000 acres. They will also assist in the provision of all utilities, an efficient single window clearance system, a stable and dependable power supply, water availability, and a waste water disposal system.