The Indian government has announced the sites for setting up of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks for the textile industry. The parks will come up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. The scheme is inspired by the 5F vision of Prime Minister Narendra Modi – Farm to Fibre to Factory to Fashion to Foreign.
What are PM MITRA Parks?
PM MITRA Parks are mega industrial clusters that will offer an opportunity to create an integrated textile value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. The parks will have world-class infrastructure, such as roads, power, water supply, effluent treatment plants, common facilities centres, plug and play factories, dormitories, etc. The parks will also have access to skilled manpower, raw materials, markets and logistics facilities.
What are the benefits of PM MITRA Parks?
The government expects that the PM MITRA Parks will enhance the competitiveness of the Indian textile industry by helping it achieve economies of scale, attract cutting edge technology, boost foreign direct investment (FDI) and local investment, foster innovation and job creation within the sector. The government estimates that the parks will generate nearly ₹70,000 crore investment and 21 lakh direct and indirect employment in the next five years. The parks will also help in achieving the United Nations Sustainable Development Goal 9: “Build resilient infrastructure, promote sustainable industrialization and foster innovation”.
How will the PM MITRA Parks be implemented?
The Ministry of Textiles will oversee the execution of the PM MITRA Parks scheme. An SPV 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 upto ₹500 crore per park to the Park SPV. A Competitive Incentive Support (CIS) upto ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation. Convergence with other GOI schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.
How were the sites for PM MITRA Parks selected?
The sites for PM MITRA Parks were selected by a transparent Challenge Method based on objective criteria taking into account a variety of factors such as connectivity, existing ecosystem, textile/industry policy, infrastructure, utility services etc. PM Gati Shakti- National Master Plan for Multi-modal Connectivity was also used for validation. The government received 18 proposals for PM MITRA parks from 13 states, out of which seven were chosen.
What are the challenges and opportunities for PM MITRA Parks?
The PM MITRA Parks scheme is a major step forward in realising the government’s vision of making India a global hub for textile manufacturing and exports. However, the scheme also faces some challenges such as land acquisition, environmental clearance, coordination among various stakeholders, ensuring quality standards, attracting global buyers etc. The scheme also offers opportunities for enhancing India’s share in the global textile market, which is expected to grow from $766 billion in 2018 to $1.23 trillion by 2025. India currently accounts for only 5% of the global textile trade.