On Wednesday, October 6, the Centre approved the setting up of seven Mega Integrated Textile Region and Apparel (PM MITRA) parks with a total outlay of ₹4,445 crore in the next five years. The parks were announced in the Union Budget for 2021-2022.
Textiles Minister Piyush Goyal said the move will help generate lakh direct and 2 lakh indirect employment per park. He added that 10 states have expressed their interest.
These facilities 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 parcels of 1,000 plus acres along with other textiles-related facilities ecosystem are welcome. These facilities will also need to have support infrastructure such as workers' hostels and housing, warehousing, logistics park, medical, training and skill development facilities.
Goyal added that so far the states that have expressed an interest are Tamil Nadu, Odisha, Punjab, Andhra Pradesh, Gujarat, Assam, Rajasthan, Karnataka, Madhya Pradesh, and Telangana.
Integrated Textiles Value Chain
These facilities will provide an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at one location. At present, the entire value chain of textiles is fragmented in different corners of India.
The PM MITRA will be developed by a special purpose vehicle owned by state governments and the Centre in public-private partnership (PPP) mode (49 per cent central government stake and 51 per cent holding by the respective states). Elaborating on how sites for such facilities will be selected he added that there will be will be a contest through a transparent challenge route, based on which State gives the cheapest land, best facilities, adequate electricity and water supplies, which State has an untroubled and stable labour situation. "Keeping all this in mind, and where there is a demand for textile industry, where skilled manpower is available, these seven regions will be identified," he was quoted as saying by The Hindu.
The scheme will have two components-development capital support which will provide 30 per cent of the estimated project cost of ₹ 1,700 crore for each park with a cap of ₹ 500 crore. For brownfield projects, the support will be capped at ₹ 200 crore.
The first movers who establish anchor plants and hire atleast 100 people will also also get an incentive support from the government. These businesses can get upto ₹ 10 crore in a year for three years or a total of ₹ 30 crore under this formula. This will not be part of the existing PLI scheme.