The Ministry of Textiles has issued the notification for setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks.
PM MITRA Parks is envisaged to help India in achieving the United Nations Sustainable Development Goal 9 (SDG) (“Build resilient infrastructure, promote sustainable industrialisation and foster innovation”).
The scheme, announced in Union Budget for 2021-22, is to develop integrated large scale and modern industrial infrastructure facility for entire value-chain of the textile industry. It will reduce logistics costs and improve competitiveness of Indian textiles.
A 2-stage selection process has been put in place. Stage 1 is for preliminary selection of potential sites offered by states wherein expenditure on constitution of Special Purpose Vehicle, planning of the park and selection of Master Developer would be done.
At Stage 2, sites will be ready for release of Grants in Aid for the construction of the park.
The PM MITRA Parks will be set up at Greenfield/Brownfield sites located in different willing states.
Proposals of State Governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textile-related facilities and ecosystem are welcome.
The Ministry said, “For a Greenfield PM MITRA Park, the GOI Development Capital Support will be 30 per cent of the Project Cost, with a cap of Rs. 500 crore. For Brownfield sites, after assessment, Development Capital Support at 30 per cent of project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs. 200 crore. State Government supports will include provision of 1,000 acre land for development of a world class industrial estate.”
Competitiveness Incentive Support (CIS) of Rs. 300 crore will also be provided to each PM MITRA Park for early establishment of textile manufacturing units in these parks, wherein the incentive can be provided to manufacturing units up to 3 per cent of the total sales turnover on first come first serve basis,” the Ministry added.
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 establish its viability.