Govt. approves setting up of 7 Mega Integrated Textile Region and Apparel Parks
Union Commerce & Industry Minister Piyush Goyal and Information & Broadcasting Minister Anurag Singh Thakur addressing a press conference on Cabinet decisions, on October 6, 2021.

Govt. approves setting up of 7 Mega Integrated Textile Region and Apparel Parks

New Delhi, October 6, 2021

The Government has approved the setting up of seven Mega Integrated Textile Region and Apparel Parks (PM MITRA), as announced in the Union Budget for 2021-22, with a total outlay of Rs 4,445 crore to position India strongly on the global textiles map.

PM MITRA is inspired by the 5F vision of Prime Minister Narendra Modi, an official press release said.

"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," it said.

The seven Mega Integrated Textile Region and Apparel Parks (PM MITRA) will be set up at greenfield or brownfield sites located in different States. Proposals of State Governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textiles related facilities and ecosystem will be considered, the release said.

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 (30% of the Project Cost) and Rs 300 crore of Competitiveness Incentive Support (CIS) to each park for the establishment of textiles manufacturing units. State Government support will include the provision of 1,000-acre land for the development of a world-class industrial estate.

For a greenfield park, the Union Government's development capital support will be 30% of the project cost, with a cap of Rs 500 crore. For brownfield sites, after assessment, the development capital support will be at the rate of 30% of the project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs 200 crore. This will be in the form of viability gap funding to make the project attractive for the participation of the private sector.

These parks will have as core infrastructure, Incubation Centre, Plug & Play facility, Developed Factory Sites, Roads, Power, Water and Waste Water system, Common Processing House & CETP and other related facilities like Design & Testing Centres.

Support infrastructure will comprise workers’ hostels & housing, logistics park, warehousing, medical, training & skill development facilities.

PM MITRA will develop 50% area for pure manufacturing activity, 20% area for utilities, and 10% of the area for commercial development.

PM MITRA park will be developed by a special purpose vehicle (SPV)which will be owned by State Government and the Union 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 be based on objective criteria developed jointly by State and Central Governments.

The SPV in which the State Government will have majority ownership will be entitled to receive part of the lease rental from developed industrial sites and be able to use that for further expansion of textiles industry in the area by expanding the park, providing skill development initiatives and other welfare measures for workers.

The Union Government will also provide a fund of Rs 300 crore for each park to incentivize manufacturing units. This will be known as Competitiveness Incentive Support (CIS) and will be paid up to 3% of the turnover of a newly established unit in the Park. Such support is crucial for a new project under establishment that has not been able to break even and needs support till it can scale up production and establish its viability, the release added.

NNN

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