The Union Cabinet on Wednesday approved the setting up of 7 Mega Integrated Textile Region and Apparel parks with a total outlay of Rs 4,445 crore for five years. States like Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Madhya Pradesh, and Telangana have already shown interest in setting up the parks, said Textiles Minister Piyush Goyal.

Share Market Live

NSE

Mega Integrated Textile Region and Apparel (PM MITRA) parks were announced in the Union Budget for 2021-22. The 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 parcels of 1,000 plus acres along with other textiles related facilities ecosystem are welcome, said an official release.

Sites for the park will be selected by a "Challenge Method" based on objective criteria. Goyal said the parks will create direct employment for 7 lakh people and indirect employment for 14 lakh.

Also Read:

PM Modi hands over keys to 75,000 beneficiaries of central housing scheme in UP

The parks 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. An integrated textile value chain at one location will also reduce the logistics cost of the industry. Maximum Development Capital Support (DCS) of Rs 500 crore to all greenfield parks and a maximum of Rs 200 crore to brownfield ones will be provided for the development of common infrastructure (30 percent of the project cost).

Also, Rs 300 crore of Competitiveness Incentive Support (CIS) will be provided to each park for the early establishment of textiles manufacturing units. Under PM MITRA, 50 percent area will be developed for pure manufacturing activity, 20 percent area for utilities, and 10 percent of the area for commercial development.

The release further said the parks will be developed by a special purpose vehicle (SPV), which will be owned by the state government and the central 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," the release said.

Also Read: Mid-Day Meal Scheme, now PM POSHAN, to cover pre-primary students; all you need to know

The SPV, in which the 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 the textiles industry in the area by expanding the PM MITRA Park, providing skill development initiatives and other welfare measures for workers.

The Centre will also provide a fund of Rs 300 crore for each park to incentivise manufacturing units to get established. Convergence with other central and state government schemes will also be available. "This will enhance the competitiveness of the textiles industry, by helping it in achieving economies of scale and will create huge job opportunities for millions of people," the release said. Leveraging economies of scale, the scheme will help Indian companies to emerge as global champions, it added.

(With inputs from PTI)

(Edited by : Priyanka Deshpande)

First Published:Oct 6, 2021 4:31 PM IST