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What is the news?
The government has approved the setting up of seven PM MITRA textiles parks, following the “Union Budget for 2021-22″ commitments, with a total outlay of Rs. 4,445 crores in a period of 5 years.
About “PM-MITRA” Scheme
The scheme aims to realize the vision of building an Aatmanirbhar Bharat by positioning India strongly on the Global textiles map. It is inspired by the 5F vision of Hon’ble Prime Minister –Farm to Fibre to Factory to Fashion to Foreign.
Aim: The scheme aims to create a world-class industrial infrastructure that would attract cutting-edge technology and boost FDI and local investment in the sector.
Sites for the scheme will be selected by a Challenge Method, based on objective criteria for Greenfield / Brownfield sites. The Centre is receiving proposals from states for the ready availability of contiguous and encumbrance-free land parcels of 1,000+ acres along with other textiles related facilities & ecosystems.
What are the various supports provided by the government under the scheme?
Competitiveness Incentive Support (CIS)– The government will provide a fund of ₹ 300 Crore to ‘investors’ setting up production facilities to incentivize manufacturing units to get established.
For a Greenfield Park ‘developer’, the centre will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 500 Cr.
For a Brownfield sites ‘developer’, the centre will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 200 Cr.
The developer will get a 25-year lease of the park, and this could be extended by another 25 years.
What infrastructures do the PM MITRA parks contain?
PM MITRA park will be developed by a Special Purpose Vehicle which will be owned by the State Government and Government of India in a Public-Private Partnership (PPP) Mode. The Master Developer will develop and also maintain the park during the concession period.
- Core Infrastructure: Incubation Centre & Plug & Play facility, Developed Factory Sites, Roads, Power, Water and Waste Water system, Common Processing House and other related facilities e.g., Design Centre, Testing Centres etc.
- Support Infrastructure: Workers’ hostels & housing, logistics park, warehousing, medical, training & skill development facilities.
What are the advantages of the PM-MITRA Scheme?
The scheme intended to generate approximately 1 lakh direct and 2 lakh indirect employment per park.
The Scheme 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 that would ease business and will reduce logistics costs of the Industry.
Source: This post is based on the articles
- “Government has approved setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA पीएम मित्र) Parks with a total outlay of Rs. 4,445 crore in a period of 5 years” published in ‘PIB’ on 06 October 2021.
- “Cabinet approves scheme to setup 7 mega textile park” published in Livemint on 07th October 2021.