This Article is From Oct 06, 2021

Centre Approves Rs 4,445 Crore For Scheme To Set Up Mega Textile Parks

Prime Minister Narendra Modi's scheme to set up seven Mega Integrated Textile Region and Apparel (PM MITRA) parks is part of a vision to build an Aatmanirbhar Bharat.

Centre Approves Rs 4,445 Crore For Scheme To Set Up Mega Textile Parks

PM MITRA parks were approved to position India strongly on the global textiles map. (Representational)

New Delhi:

To realise the Prime Minister Narendra Modi's vision of building an Aatmanirbhar Bharat (self-reliant India) and to position India strongly on the global textiles map, the Union Cabinet has approved seven Mega Integrated Textile Region and Apparel (PM MITRA) parks to be set up, with a total outlay of Rs 4,445 crore in a period of 5 years, as announced in the Union Budget for 2021-22.

Union Minister for Commerce and Industry Piyush Goyal today said that the seven PM MITRA parks will be set up at Greenfield or Brownfield sites located in different states.

"Maximum Development Capital Support (DCS) of Rs 500 crore to all Greenfield PM MITRA and a maximum of Rs 200 Crore to Brownfield PM MITRA will be provided for the development of common infrastructure (at 30 per cent of the project cost) and Rs 300 Crore of Competitiveness Incentive Support (CIS) will also be provided to each PM MITRA park for early establishment of textiles manufacturing units." said Mr Goyal.

"State government supports will include the provision of 1,000-acre land for the development of a world-class industrial estate," he added.

The minister said PM MITRA is inspired by the 5F vision of PM Modi. "The '5F' Formula encompasses - farm to fibre; fibre to factory; factory to fashion; fashion to foreign. This integrated vision will help to further the growth of the textile sector in the economy. No other competing nation has a complete textile ecosystem like us. India is strong in all five Fs," he said.

In line with Mr Goyal's comments, an official release stated, "For a Greenfield PM MITRA park, the government of India 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."

"This is in a form of viability gap funding to make the project attractive for the participation of the private sector," the release said.

According to the official release, the core infrastructure of PM MITRA parks will include an incubation centre and plug and play facility, developed factory sites, roads, power, water and waste-water system, a common processing house, a common effluent treatment plant (CETP) and other related facilities like a design centre and testing centres, among others. It will also have support infrastructures like workers' hostels and housing, logistics park, warehousing, medical, training and skill development facilities.

"PM MITRA will develop 50 per cent area for pure manufacturing activity, 20 per cent area for utilities, and 10 per cent of the area for commercial development," it added.