Union Cabinet has approved the much awaited setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks with a total outlay of Rs. 4,445 crore in a period of 5 years.
Each park is intended to generate one lakh direct and two lakh indirect employment.
PM MITRA is inspired by the 5F vision of Prime Minister – Farm to Fibre to Factory to Fashion to Foreign. The Government announced this in Union Budget for 2021-22.
Under this initiative, world-class industrial infrastructure would attract cutting age technology and boost FDI and local investment in the sector. It 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.
Integrated textile value chain at one location will reduce logistics cost of Industry and will save time also.
Announcing the details, Commerce and Industry, Textiles Minister Piyush Goyal said that this announcement comes as a gift for the textiles community on this auspicious occasion.
“Step by Step we have strengthened textile ecosystem of the nation to fully utilise our competitive and comparative advantage. From weavers to women entrepreneurs, every segment has been empowered by these steps,” he said.
Maximum Development Capital Support (DCS) of Rs. 500 crore to all Greenfield parks and a maximum of Rs. 200 Crore to Brownfield parks will be provided for development of common infrastructure (@30 per cent of the project cost).
State Government supports will include provision of 1,000 acre land for development of a world class industrial estate.
Central Government will also provide a fund of Rs. 300 crore for each park to incentivise manufacturing units to get established. 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 parks.
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.
These parks will have core infrastructure like incubation centre and plug & play facility, developed factory sites, roads, power, water and waste water system, common processing house and CETP and other related facilities, e.g., design centre, testing centres, etc.
There will be support Infrastructure also like workers’ hostels & housing, logistics park, warehousing, medical, training and skill development facilities.
These parks will develop 50 per cent area for pure manufacturing activity, 20 per cent for utilities and 10 per cent of area for commercial development.
The parks will be developed by a Special Purpose Vehicle which will be owned by State Government and Union Government in a Public Private Partnership (PPP) Mode.
The Master Developer will not only develop the industrial park but also maintain it during the concession period. Selection of this Master Developer will happen based on objective criteria developed jointly by State and Central Governments.
SPV in which State Government has majority ownership will be entitled to receive part of the lease rental from developed industrial sites and will be able to use that for further expansion of textiles industry in the area by expanding the parks, providing skill development initiatives and other welfare measures for workers.