The Indian Government recently approved the establishment of 7 PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks. With an outlay of Rs. 4445 crore planned for a period of seven years until 2027-28, these parks will be set up in both Greenfield and Brownfield sites. This initiative is part of the Government of India’s implementation of the Scheme for Integrated Textile Park (SITP), which supports the creation of world-class infrastructure facilities for textile units.
About the PM MITRA Parks
The parks will be developed by a Special Purpose Vehicle, owned by both the Central and State Government through a Public Private Partnership (PPP) mode. The facilities in each park will include an incubation centre, a common processing house, a common effluent treatment plant, and other textile-related facilities such as design centres and testing centres. The incubation centre will provide comprehensive business and technical services, initial seed funds, lab facilities, advisory support, networking, and linkages to assist entrepreneurs, particularly in the initial stages of their business development. Moreover, the Master Developer in charge of developing the Industrial Park will also be responsible for maintaining it during the concession period.
Funding for the PM MITRA Parks
The central government will support the development of common infrastructure with capital assistance amounting to Rs 500 crore for each greenfield MITRA park and up to Rs 200 crore for each brownfield park. The term “Greenfield” denotes a completely new project that has to be executed from scratch, whereas a “Brownfield” project has previously been worked on by others.
Eligibility for Incentives in the PM MITRA Parks
An additional Rs 300 crore will be provided as Competitiveness Incentive Support to promote the early establishment of textile manufacturing units in these parks. Investors that establish “anchor plants”, employing at least 100 people, will be eligible for incentives amounting to Rs. 10 crore annually for up to three years.
Significance of the PM MITRA Parks
The primary benefits of these parks include reducing logistic costs and strengthening the textile sector’s value chain, thereby enhancing its global competitiveness. Each park is also anticipated to directly generate 100,000 jobs and indirectly create an additional 200,000 jobs. These parks are crucial for attracting Foreign Direct Investment (FDI). Between April 2000 and September 2020, India’s textile sector received Rs 20,468.62 crore of FDI, representing only 0.69% of total FDI inflows during this period.
Other Related Initiatives in the Textile Sector
The Indian Government has taken various other steps to bolster the textile industry. These include the approval of a Production Linked Incentive Scheme for man-made fibre segment (MMF) apparel, MMF fabrics, and ten products of technical textiles for five years, as well as the launch of a National Technical Textiles Mission aimed at promoting research and development in the sector.
About India’s Textile Sector
India’s textile industry, one of the oldest sectors in the country’s economy, contributes significantly to the nation’s Gross Domestic Product, Industrial Output, export earnings, and employment. Notably, India is ranked sixth globally in the production of Technical Textiles, and is the world’s largest producer of cotton and jute. The country is also the second-largest producer of silk globally and accounts for 95% of the world’s handwoven fabric.
Major Initiatives in India’s Textile Sector
Several major initiatives have been launched to foster growth in the textile sector, including the Amended Technology Upgradation Fund Scheme (ATUFS), the Scheme for Integrated Textile Parks (SITP), the SAMARTH Scheme, the North East Region Textile Promotion Scheme (NERTPS), Power-Tex India, the Silk Samagra Scheme, and Jute ICARE.