PM MITRA: Tamil Nadu, Karnataka, among 7 States to get textile...

PM MITRA: Tamil Nadu, Karnataka, among 7 States to get textile parks

March 18, 2023

Why in News?

The Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, MP and UP to set up new textile parks, a year and a half after the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme was announced.

What’s in Today’s Article?

What is the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Scheme?

The Ministry of Textiles has launched (2021) the scheme to strengthen the Indian textile industry by way of
- Enabling scale of operations,
- Reducing logistics cost by housing entire value chain at one location,
- Attracting investment,
- Generating employment and augment export potential.
The Scheme has a budget outlay of 4445 Crore including administrative expenses of Rs 30 crore over 7-year period up to 2027-28.
The scheme will develop an integrated large scale and modern industrial infrastructure facility (parks) for total value-chain (spinning, weaving, processing, printing, etc) of the textile industry.
These parks are envisaged to be located at sites which have inherent strengths for the textile industry to flourish and have necessary linkages to succeed.
The scheme envisages to leverage the Public Private Partnership (PPP) model for fast paced implementation in a time-bound manner.
PM MITRA mega textile parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision.

How will these Parks be set up under the PM MITRA Scheme?

These parks will be set up on the basis of proposals received from State Governments having ready availability of contiguous and encumbrance-free land parcels of minimum 1000 acres.
The State Government will transfer land to the Special Purpose Vehicle (SPV), which will be a legal entity (with 51% equity shareholding of State and 49% of Central Government).
The selection of PM MITRA Park sites will be done in a two stage (Selection of Sites, Development of the Park) selection process on Challenge Method.
- The "Challenge Method" is a type of selection process that is often used in competitions and challenges to determine the best candidate or solution.
- In the context of the PM MITRA Park sites, the challenge method involves a two-stage process.
  - Interested parties first submit their proposals for the development of the park sites.
  - Then a select number of proposals are chosen to move on to the second stage.
  - During the second stage, the selected proposals may be given specific challenges or tasks to complete in order to further demonstrate the feasibility and effectiveness of their proposal.
  - At the end of the challenge method process, the proposal that best meets the criteria and objectives of the PM MITRA Park sites project will be selected for implementation.

News Summary Regarding Selections of News Sites to Develop Textile Parks:

The textile industry has been unorganised in the country and increased wastage and logistical costs impacts the competitiveness of the country's textile sector.
This cluster-based approach will solve several problems of the sector and will function as centres of opportunity to create an integrated textiles value chain.
The parks in the seven selected States would provide state-of-the-art infrastructure for the textiles sector, attract an investment of nearly ₹70,000 crore into these parks, with employment generation for about 20 lakh people.
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 Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.

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