Recently, the Union Cabinet has approved the establishment of seven Mega Integrated Textile Region and Apparel Parks (PM MITRA).
PM MITRA (Prime Ministers Mega Integrated Textile Region and Apparel) announced in the budget for the year 2021-22 will be set up over a period of 5 years with a total outlay of Rs 4,445 crore.
These parks will have the following features:
- Basic infrastructure: Incubation center and plug and play facility, developed factory site, roads, electricity, water and waste water treatment system etc.
- Supporting Infrastructure: Staff Hostel and Accommodation, Logistics Park, Warehousing etc.
Key Features of PM Mitra:
- The park will be developed by a Special Purpose Vehicle (SPV). This SPV will be under the ownership of the State Government and the Central Government in Public Private Partnership (PPP) mode.
- Parks will be set up at Green Field / Brown Field sites located in different interested states.
- 30% of the project cost will be provided for Green Field Park. However, the maximum limit for this collaboration will be Rs 500 crore.
- This assistance for brown field sites will be 30% of the project cost of the remaining infrastructure and other ancillary facilities. Its maximum limit has been fixed at Rs 200 crore.
- Competitive incentive assistance of Rs.300 crore will be provided to each park for early setting up of textile manufacturing units.
- 50% of the area will be developed purely for manufacturing activities and the rest for utilities, commercial development etc.
Importance of PM Mitra:
- It will attract cutting-edge technology, and promote foreign direct investment and local investment in the region.
- It will create an integrated textile value chain from spinning, weaving, processing/dyeing and printing to garment manufacturing at one place.
- This will reduce the logistics cost of the industry.
- This will help in generating about 1 lakh direct and 2 lakh indirect jobs per park.
Source – PIB