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18 March 2023: Seven PM MITRA Textile Parks

What’s in news?

  • A year and a half after the PM Integrated Textile Regions and Apparel (PM MITRA) programme was unveiled, the Center has chosen locations in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh, and Uttar Pradesh to establish new textile parks.
  • The state governments have given the parks at least 1,000 acres of free land and helped pay for all the services, such as power and water. An initial investment of Rs. 200 crores has been made.
  • The parks will “offer state-of-the-art facilities for the textiles sector, attract investment of millions, and generate lakhs of jobs.”.
  • The Center envisages an investment of nearly 70,000 crores in these parks, with employment generation for about 20 lakh people.
  • The parks will work as centres of opportunity to establish an integrated textile value chain, straight from spinning, weaving, processing, dyeing, and printing through garment production, all at a single location.
  • The scheme was unveiled in October 2021, and the parks are scheduled to open in 2026–2027. The overall project cost is 4,445 crore, although the first allocation in the 2023-24 budget is merely 200 crore.

PM MITRA:

  • In collaboration with willing state governments, the Government of India intends to establish seven (seven) Mega Integrated Textile Region and Apparel (MITRA) Parks in Greenfield and Brownfield locations.
  • A brownfield site is any land that has already been developed. A “greenfield” site is at the opposite extreme of the spectrum, referring to undeveloped land.
  • The plan will result in the development of a contemporary, integrated, large-scale, world-class industrial infrastructure, including plug-and-play facilities, with a budget of 4,445 crores for the years 2021–22 to 2027–28.

Objectives:

  • PM MITRA Parks is intended to assist India in meeting UN Sustainable Development Goal 9 (“Build resilient infrastructure, promote sustainable industrialization, and foster innovation”).
  • The plan is to build an integrated, large-scale, and contemporary industrial infrastructure facility for the whole textile value chain.
  • It will lower logistical costs and boost Indian textiles’ competitiveness.
  • These parks are intended to be positioned in areas that have the natural strength for the textile industry to thrive and the essential links to succeed.

Centre-state collaboration:

  • An SPV [Special Purpose Vehicle] owned by the Centre and state governments would be established for each park, which would oversee the implementation of the project.
  • The Ministry of Textiles would offer financial assistance to the park SPV in the form of development capital support of up to Rs 500 crore per park.
  • Competitive incentive support (CIS) of up to 300 crores per park will also be granted to PM MITRA Park units to encourage rapid implementation.
  • Convergence with other Government of India initiatives would be encouraged to provide extra benefits to master developers and investor units.

Operational model: 

  • PM MITRA Park will be built using a Master Developer (MD) model based on a Public-Private Partnership (PPP) in a Design-Build-Finance-Operate-Transfer (DBFOT) structure. Other models, such as a government SPV-led model or a hybrid model with minimal private developer participation, can be explored in exceptional circumstances with the approval of the Government of India.

Significance:

  • The PM MITRA parks will provide the ideal ecosystem for the textile sector to be collectively present in one area, with plug-and-play infrastructure.
  • It will boost the textile value chain’s competitiveness.
  • It will also help the Prime Minister’s five-F vision (farm, fibre, factory, fashion, and foreign).
  • The initiative will assist India in attracting investments, increasing job creation, and establishing a strong position in the global textile industry.

Vision for 2030:

    • to reach an economic value of $250 billion in production and $100 billion in exports of textiles, clothing, and allied items.