NEW DELHI: In order to promote India’s textile sector and make exports competitive, Union Cabinet on Wednesday approved PM MITRA (Mega Integrated Textile Region and Apparel) scheme to set up seven integrated textile parks, with an investment of Rs 4,445 crore over five years.
The scheme, which was announced in the Budget speech this year, will develop MITRA parks by a special purpose vehicle, owned by state government and Centre, in public-private partnership mode. The parks will be set up at greenfield and brownfield sites in states willing to participate under the scheme.
In a media briefing post Cabinet meeting, Union Textile Minister Piyush Goyal said that the Centre is in talks with the states for the scheme and 10 states have already shown interest, including Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana. The PM MITRA scheme is expected to create direct employment for 7 lakh people and indirect employment for 14 lakh people, Goyal said.
The Centre will provide support of up to Rs 500 crore each to greenfield park and up to Rs 200 crore each for brownfield park under the scheme for development of infrastructure. Also it will provide Rs 300 crore as Competitiveness Incentive Support (CIS) to each PM MITRA park for early establishment of manufacturing units.
The textile parks will have an incubation centre and plug-and-play facility, developed factory sites, roads, power, water and wastewater system, common processing house and other related facilities like design centre and testing centres.
They will also have support infrastructure like workers’ hostels and housing, logistics park, warehousing, medical facilities and training and skill development facilities.
The parks will have 50% area for pure manufacturing activity, 20% for utilities, and 10% for commercial development. “This will enhance the competitiveness of the textiles industry by helping it in achieving economies of scale and will create huge job opportunities for millions,” the government said.
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Rs 500 crore Centre’s support for each greenfield park.
Rs 200 crore To be given for each brownfield park.
Rs 300 crore For each park as Competitiveness Incentive Support.
Seven lakh direct and 14 lakh indirect jobs to be created.