Govt approves setting up of 7 PM MITRA parks at Rs 4,445 crore; to provide 21 lakh jobs

In a bid to accomplish the vision of Prime Minister Narendra Modi in establishing an Atmanirbhar Bharat (self-dependent India) and to make India stand at par with Global textile giants, the Union Cabinet on Wednesday declared the setting up of seven PM MITRA parks with an outlaw of 4,445 crores for over five years, as announced in the Union Budget 2021-22. 

Announcing the Cabinet resolution following the meeting chaired by PM Modi, Union Minister for Commerce and Industry Piyush Goyal on Wednesday said that the seven Mega Integrated Textile Region and Apparel (PM MITRA) parks will be established at Greenfield or Brownfield sites located in different states and that the move will be benefitting the unemployed with seven lakh direct jobs and 14 lakh indirect jobs.

Centre in talks with states for the establishment of parks

The Minister said that the government is in talks with the states for the project and that till now 10 states have already shown their interest including Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan,  Assam, Karnataka, Madhya Pradesh, and Telangana. 

Under the project, PM MITRA parks will be established by a special purpose vehicle, owned by the state governments and the Centre in a public-private partnership (PPP) model.

"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 (at 30 per cent of the project cost) and Rs 300 crore of Competitiveness Incentive Support (CIS) will also be provided to each PM MITRA park for early establishment of textiles manufacturing units in PM MITRA. State government supports will include the provision of 1000 acre land for the development of a world-class industrial estate," Goyal said.

Project inspired by PM Modi's 5F vision: Piyush Goyal 

The Union Minister said that PM MITRA is motivated by PM Modi's 5F vision of farm to fibre; fibre to factory; factory to fashion; and fashion to foreign. "This integrated vision will help to further the growth of the textile sector in the economy. No other competing nation has a complete textile ecosystem like us. India is strong in all five Fs," the Minister of Textiles said.

PPP model-based PM MITRA parks to have world-class infrastructure

As per the official release, "For a Greenfield PM MITRA park, the Government of India development capital support will be 30 per cent of the project cost, with a cap of Rs 500 crore. For Brownfield sites, after assessment, development capital support at 30 per cent of project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs 200 crore."

"This is in a form of viability gap funding to make the project attractive for the participation of the private sector," the release said.

The textile parks will include an incubation centre and plug-and-play facility, developed factory sites, roads, power, water, and waste-water system, common processing house and CETP, and other related facilities like design centre, testing centre, among others. The parks will also have workers' hostels and housing, logistics park, warehousing, medical, training and skill development facilities.

The parks will have 50% area for manufacturing activity, 20% for utilities, and 10% area for commercial development.

Inputs: ANI

Image: PTI