PM MITRA - GOVERNANCE
News:
States identified for PM MITRA scheme to be announced soon: Piyush Goyal
What's in the news?
● The
Ministry of Textiles will shortly name the States identified for implementation
of Prime Minister MITRA (Mega Integrated
Textile Region and Apparel) scheme, Union Minister of Textiles Piyush
Goyal.
Key takeaways:
● The
PM MITRA parks will provide the best ecosystem for the textile industry to be
collectively present in one location, with plug-and-play
infrastructure, and improve the competitiveness of the textile value chain.
● It
will also give a boost to the five F (farm, fiber, factory, fashion, foreign)
vision of the Prime Minister.
● Recently,
an additional amount of ₹500 crore was allocated for the Scheme for Rebate of State and Central Taxes and Levies on Export of
Garments and Made-ups (RoSCTL) from the Remission of Duties and Taxes on
Exported Products (RoDTEP) scheme.
● The vision for 2030 is to
achieve an economic value of $250 billion in production and $100 billion in
export of textiles, apparel, and related
products and this is achievable through the industry facing a small setback in
the current year.
● Mr.
Goyal also urged the industry to focus on sustainability and circular economy.
PM MITRA Scheme:
● The 7 PM MITRA parks will be set up at
Greenfield / Brownfield sites located in different willing States.
● PM
MITRA Park will be developed by a Special
Purpose Vehicle which will be owned by the State Government and Government
of India in a Public Private Partnership
(PPP) Mode.
● It
is inspired by the 5F vision of the
Prime Minister of India. The ‘5F’ Formula encompasses - farm to fiber; fiber to
factory; factory to fashion; fashion to foreign.
Mission:
● The
scheme aims to create a world-class
industrial infrastructure that would attract cutting-edge technology and
boost FDI and local investment in the sector.
● The
scheme also aims to boost employment generation within the textile sector.
Administrative Control: Ministry of Textiles.
Budgetary Support: ₹4,445 crores in a period
of 5 years.
Features:
● They
will have plug-and-play facilities (business facilities will be available
ready-made) to help create global champions in exports in the textile sector.
● It
is in the line with the SDG-Goal 9: “Build resilient infrastructure,
promote sustainable industrialization and foster innovation”
Site Selection:
● Sites
for the scheme will be selected by a Challenge
Method, based on objective criteria for Greenfield / Brownfield sites.
Supports Provided:
● Competitiveness Incentive
Support (CIS) - The government will provide a fund
of ₹ 300 Crore to ‘investors’ setting up production facilities to incentivize
manufacturing units to get established.
● For
a Greenfield Park ‘developer’, the center
will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 500
Crores.
● For
a Brownfield sites ‘developer’, the center
will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 200
Crores.
● The
developer will get a 25-year lease of the park, and this could be extended by
another 25 years.
Infrastructure Development:
● Core Infrastructure:
Incubation Centre & Plug & Play facility, Developed Factory Sites,
Roads, Power, Water and Waste water system, Common Processing House and other
related facilities e.g., Design Centre, Testing Centers etc.
● Support Infrastructure:
Workers’ hostels & housing, logistics park, warehousing, medical, training
& skill development facilities.
Significance:
● The
scheme will create a level-playing field for domestic manufacturers in the
international textiles market.
● It
will also pave the way for India to
become a global champion of textiles exports across all segments.
Go back to basics:
● The
Indian textile sector is the sixth-largest
exporter of textiles and apparel in the world.
● The
industry is also among the top employers in the country providing direct employment to 45 million people and 60
million people in allied industries.