The Indian Union Cabinet’s latest approval to establish seven Mega Integrated Textile Region and Apparel (PM MITRA) Parks has stirred up interest in the textile industry. The parks are envisaged to streamline the entire textile value chain at a single location, from spinning and weaving to garment manufacturing. The central government has allocated an outlay of Rs. 4,445 crore for this ambitious project.
PM MITRA Park: A Detailed Overview
The PM MITRA park is to be developed by a Special Purpose Vehicle (SPV) jointly owned by the Central and State Government, operating under a Public Private Partnership (PPP) Mode. Each park will encompass an incubation centre, common processing house, a common effluent treatment plant, and additional textile-related facilities such as design and testing centres. Furthermore, the Master Developer, responsible for the development of the Industrial Park, will also ensure its maintenance throughout the concession period.
Funding Strategy and Scheme Details
For the development of common infrastructure, the central government will provide development capital support of Rs 500 crore for each greenfield MITRA park and upto Rs 200 crore for each brownfield park. The terms “greenfield” and “brownfield” refer to entirely new projects and previously worked-upon projects, respectively.
Motivating Through Incentives
To foster early establishment of textiles manufacturing units in these parks, the government will provide an additional Rs 300 crore as Competitiveness Incentive Support. Investors who initiate “anchor plants” that employ a minimum of 100 people stand eligible for incentives of upto Rs 10 crore annually for a period of upto three years.
The Anticipated Impact of PM MITRA Parks
The establishment of the MITRA parks aims to slash logistics costs and solidify the textile sector’s value chain, thereby enhancing its global competitiveness. Besides, the parks are anticipated to create direct employment for 1 lakh individuals and indirect jobs for an additional 2 lakh people per park.
Another significant impact of these parks is their potential to attract Foreign Direct Investment (FDI). The period from April 2000 to September 2020 saw India’s textile sector receiving Rs 20,468.62 crore of FDI, a mere 0.69% of the total FDI inflows during this period.
Other Related Initiatives
Alongside the PM MITRA parks, several other initiatives have been undertaken to bolster the textile industry. The Production Linked Incentive Scheme has been approved for the man-made fibre segment (MMF) apparel, MMF fabrics, and ten products of technical textiles for a five-year span. The National Technical Textiles Mission has also been launched to promote research and development in the sector.
