Cabinet approves Rs 4.4k crore for 7 new textile parks under MITRA scheme

The Cabinet has given the nod for the setting up of seven integrated mega textile parks worth Rs 4,445 crores over a span of five years. The seven new textile parks, which falls under the Mega Integrated Textile Region and Apparel (MITRA) scheme, will be set up at Greenfield or Brownfield sites located in different states.

The Union Minister for Commerce and Industry Piyush Goyal said 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% of the project cost.

Rs 300 crore of competitiveness incentive support (CIS) will also be provided to each PM MITRA park for early establishment of textiles manufacturing units. State government support will include the provision of 1,000-acre land for the development of a world-class industrial estate. Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana have expressed interest in this scheme.

The scheme was conceived keeping in mind that it will work in tandem with the production-linked incentive (PLI) in the textiles sector. Last month, the government had notified the Rs 10,683 crore PLI, specifically aimed at boosting the production of man-made fibre (MMF) fabric, MMF apparel and technical textiles.

Goyal said PM MITRA parks will be developed by a special purpose vehicle which will be owned by the state government and Centre in public private partnership (PPP). “The master developer will not only develop the industrial park but also maintain it during the concession period. Selection of this master developer will happen based on objective criteria developed jointly by the state and central governments,” he said. “Proposals of state governments having ready availability of contiguous and encumbrance-free land parcels of 1,000+ acres along with other textiles related facilities and ecosystem are welcome.”

The minister highlighted that the scheme will be in two parts, with the larger component being development support. “The government estimates the cost of setting up each park at an estimated Rs 1700 crore. Of this, up to 30% of the project cost or Rs 500 crore in greenfield parks, and up to Rs 200 crore in brownfield parks will be provided by the government as development capital support,” Goyal said.

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The first movers who establish anchor plants and hire at least 100 people will also get a competitive incentive support from the government. These businesses can secure up to Rs 10 crore in a year for three years or a total of Rs 30 crore under this formula.

Furthermore, the government wants holistic integrated textile processing regions to be established around these parks. It would include common services centres, design centres, research and development centres, training facilities, medical and housing facilities as well as Inland Container Terminals and logistics warehouses.