PM MITRA – GOVERNMENT SCHEME
News: Tamil
Nadu, Karnataka, among 7 States to get textile parks
What's in the news?
● The
Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra,
Gujarat, Madhya Pradesh and Uttar Pradesh to set up new textile parks under the
PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme.
Key takeaways:
● Prime
Minister Narendra Modi said that the parks would “provide state-of-the-art infrastructure for the textiles sector, attract
investment of crores and create lakhs of jobs”.
PM MITRA Scheme:
Need:
● The
textile industry has been unorganized in the country. This increased wastage
and logistical costs impacting the competitiveness of the country's textile
sector.
● Thus,
this cluster-based approach, a
vision of the Prime Minister, will solve several problems of the sector.
Aim:
● To
attract investments worth ₹70,000
crore for the integrated parks.
● To
generate jobs for 20 lakh people.
● To
create an integrated value chain for
the sector.
Vision:
● PM
MITRA mega textile parks will boost the textiles sector in line with 5F (Farm to Fiber to Factory to Fashion to
Foreign) vision.
Administrative Control: Ministry of Textiles.
Year:
2021-26.
Financial Outlay:
● The
total outlay for the project is ₹4,445 crore, though the intial allocation in
the 2023-24 Budget is only ₹200 crore.
Partnership with states:
● An
SPV [Special Purpose Vehicle] owned by
Centre and State Government will be set up for each park which will oversee
the implementation of the project.
● The
Ministry of Textiles will provide financial support in the form of Development
Capital Support up to ₹500 crore per park to the Park SPV.
● The
State governments have offered to provide at least 1,000 acres of land for free
for the parks and will also facilitate provision of all utilities such as power
and water.
● PM
MITRA Parks represent a unique model where the Centre and State Governments
will work together to increase investment, promote innovation, create job
opportunities and ultimately make India a global hub for textile manufacturing
and exports.
Features:
● A
Competitive Incentive Support (CIS) up
to ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivize
speedy implementation.
● The
parks will function as centers of opportunity to create an integrated textiles
value chain, right from spinning, weaving, processing, dyeing and printing to
garment manufacturing, all at a single location.
● Convergence
with other Government of India schemes shall also be facilitated in order to
ensure additional incentives to the Master Developer and investor units.
Significance:
● The
proposed world-class industrial infrastructure would attract cutting edge
technology and boost foreign direct investment and local investment in the
sector.
● The
PM MITRA mega textile parks will provide state-of-the-art infrastructure for
the textiles sector, attract investment of crores and create lakhs of jobs. It
will be a great example of 'Make in India' and 'Make For the World.'