New Delhi: The Ministry of Textiles has issued the notification for setting up of 7 PM Mitra parks as announced in Union Budget for 2021-22 and approved by the central government recently. The scheme aims to realise the vision of Prime Minister Narendra Modi of building an Aatmanirbhar Bharat and to position India strongly on the global textiles map. "The PM Mitra parks is envisaged to help India in achieving the United Nations Sustainable Development Goal 9 (Build resilient infrastructure, promote sustainable industrialization and foster innovation)", the Ministry said in an official statement issued Monday.
“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 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,” it added.
The scheme is to develop integrated large scale and modern industrial infrastructure facilities for the entire value-chain of the textile industry. It will reduce logistics costs and improve the competitiveness of Indian textiles. The scheme will help India in attracting investments, boosting employment generation and positioning itself strongly in the global textile market. These parks are envisaged to be located at sites that have inherent strength for Textile Industry to flourish and have the necessary linkages to succeed.
The 7 PM Mega Integrated Textile Region and Apparel (PM Mitra) parks will be set up at greenfield and brownfield sites located in different willing states. Proposals of the state governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textiles related facilities and ecosystem are welcome.
For a Greenfield PM Mitra park, the development capital support will be 30 percent of the project cost, with a cap of Rs 500 crore. For brownfield sites, after assessment, development capital support at 30 percent of project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs 200 crore. The state government supports will include the provision of 1,000 acres of land for the 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 the early establishment of textiles manufacturing units in PM MITRA Park. Such support is crucial for a new project under establishment that has not been able to break even and needs support till it is able to scale up production and be able to establish its viability.
The park will be developed by a Special Purpose Vehicle which will be owned by the state government and 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. The selection of this master developer will happen based on objective criteria developed jointly by the state and central governments.
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 convergence with other central government and state government schemes is available as per their eligibility under the guidelines of those schemes. 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. Leveraging economies of scale, the scheme will help Indian companies to emerge as global champions.
The detailed guidelines for the scheme are under preparation, after which the proposals will be invited from the willing state governments.
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