Prime Minister Mega Integrated Textile Region And Apparel Parks

PM MITRA Parks aim to provide direct employment to 7 lakh people and indirect employment to 14 lakh people in the next five years.

PM MITRA Parks was announced in the Union Budget of 2021-22. Union Cabinet has approved to set up 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks with an outlay of Rs. 4445 crore for an ‘Atma Nirbhar Bharat’ and position the country firmly at the global textile and garment market.

The Mega Parks will help firm the foundations of the textile and garment sector and increase investment at the global level.

What are PM MITRA Parks?

7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks will be set up within a financial package of Rs 4445 crore in the next five years.

Each of seven Mega Parks will provide at least 3 lakh employment opportunities and increase Foreign Direct Investment (FDI) and local investment.

“Prime-Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA Yojna) will promote 7 Mega Parks at different sites in the country.

It aims to provide direct employment to 7 lakh people and indirect employment to 14 lakh people.”- said Piyush Goyal, Union Textile Minister.

The Mega Parks focuses on F’s of the textile sector. It envisions to gather ‘Farm to Fibre to Factory to Fashion to Foreign’.

Spinning, knitting, processing, dyeing, designing, printing and manufacturing of clothes will be done under the same roof, which will decrease the cost of logistics.

How much financial support it will get?

The integrated parks will have two sections- Development Capital Support (DCS) and Competitiveness Incentive Support (CIS).

Development Capital Support (DCS) will provide 30 per cent of the project cost, Rs 500 crore for all greenfield parks and a maximum of Rs 200 crore for brownfield ones. DCS will provide support to the development of common infrastructure.

Competitiveness Incentive Support (CIS) will provide Rs. 300 crore to each park for the early establishment of textiles manufacturing units.

Where will the parks be set up?

Mega Parks will be established in the states decided based on challenging process based on states providing- better perks, cheaper land, electricity, water and conditions of neighbour surroundings of the state.

Tamil Nadu, Punjab, Orissa, Andhra Pradesh, Gujarat, Rajasthan, Assam, Madhya Pradesh, and Telangana have already shown interest in setting up the parks.

What is Special Purpose Vehicle?

A Special Purpose Vehicle (SPV) is a lawful entity for a specific purpose. Against the background of raising capital, an SPV can be used as a funding structure by which all investors are lumped together into a single entity.

The Mega Parks will be established by a Special Purpose Vehicle (SPV), governed by the state government and the central government in a public-private partnership (PPP) model.

The SPV, in which the state government has majority ownership, will be entitled to receive part of the lease rental from developed industrial sites and will be able to use that for further expansion of the textiles industry

In the area by expanding the PM MITRA Park, providing skill development initiatives and other welfare measures for workers.

Convergence with other central and state government schemes will also be available. This will enhance the competitiveness of the textiles industry by helping it achieve economies of scale and create huge job opportunities for millions of people.

Leveraging economies of scale, the scheme will help Indian companies to emerge as global champions.