PM MITRA Scheme

The scheme named PM MITRA (Mega Integrated Textile Region and Apparel) program was first announced in the 2021-22 United Budget. It is inspired by the vision of the 5F which are farm to fibre, factory, fashion and foreign. This integrated vision of the government aims to help drive the growth of the textile sector in the country’s economy.

Highlights

7 parks of PM MITRA will be placed at Greenfield / Brownfield sites in various states. PM MITRA Park is being developed by a special purpose vehicle owned by the Government of State and the Government of India through a Public-Private Partnership (PPP).

Aims of the scheme

The program aims to build a world-class industrial infrastructure that attracts cutting-edge technology and stimulates foreign and domestic investment in this sector. Program locations are selected using a challenge method based on objective criteria for greenfield / brownfield location.

Financial Support

The PM MITRA program began with a total spending of Rs 4,445 crores over a five-year period. A competitive incentive support of Rs 300 crores is also available at all PM MITRA parks for early installation of textile production units in PM MITRA. This is a form of financing through the profitability gap to make the project attractive to the private sector involvement. State government support includes 1,000 acres of land for the development of world-class business parks.

About Brownfield Projects

A maximum development capital support (DCS) of Rs 200 crores is provided to develop a common infrastructure for all brownfield PM MITRA parks. For brownfield sites, post-evaluation development capital support is 30% of the project cost of the balancing infrastructure and has Rs 200 crores limit.

About Greenfield Projects

A maximum development capital support (DCS) of Rs 500 crores is provided to develop a common infrastructure for all Greenfield PM MITRA parks. Development funding is 30% of the project cost, up to Rs 500 crores.

What will PM MITRA have?

Each PM MITRA park envisages to have an incubation center, a joint treatment facility, a joint wastewater treatment plant, and other textile-related facilities such as a design center and a test center. The master developer not only develops the industrial zone, but also maintains it during the concession period. Worker dormitories and apartments, logistics parks, warehouses, medical facilities, training and skill development facilities will also be available

Benefits

Parks will make the textile industry more competitive. This helps the industry achieve quick scale up of their economies. It will provide millions of people with tremendous work opportunities. This program helps Indian companies establish their position as global champions.