Cabinet approves creation of 7 integrated mega parks of textile and clothing regions with expenditure of Rs4,445cr


The Union Cabinet approved the creation of MITRA parks at 7 p.m., as announced in the Union budget for 2021-2022. PM MITRA is inspired by the 5F vision of the Honorable Prime Minister. The “5F” formula includes – From farm to fiber; fiber at the plant; fashionable factory; fashion abroad.

This integrated vision will help promote the growth of the textile sector in the economy. No other competing nation has a complete textile ecosystem like us. India is strong in the five F.

The 7 Mega Integrated Textile Region and Apparel Parks (PM MITRA) will be set up at Greenfield / Brownfield sites located in different volunteer states. Proposals from state governments with immediate availability of contiguous and unencumbered plots of over 1,000 acres as well as other textile-related facilities and ecosystems are welcome.

Maximum Development Capital Support (DCS) of Rs500cr to all Greenfield PM MITRA and a maximum of Rs200cr to Brownfield PM MITRA will be provided for common infrastructure development (@ 30% of project cost) and Rs300cr of support Competitiveness (CIS) will also be provided to each PM MITRA park for the early establishment of textile manufacturing units in PM MITRA. State government support will include the provision of 1,000 acres of land for the development of a world-class industrial zone.

For a Greenfield PM MITRA park, the GOI Development Capital Support will be 30% of the cost of the project, with a ceiling of Rs500 Cr. For contaminated sites, after appraisal, development capital support @ 30% of the project cost balancing infrastructure and other support facilities to be developed and limited to a limit of Rs. 200cr. This is a form of sustainability gap financing to make the project attractive for private sector participation.

PM MITRA will develop 50% of the area for pure manufacturing activity, 20% of the area for utilities and 10% of the area for business development.

The PM MITRA fleet will be developed by a special purpose vehicle that will be owned by the state government and the government of India under a public-private partnership (PPP). The Client will not only develop the Industrial Park, but will also maintain it during the concession period. The selection of this master developer will be made on the basis of objective criteria jointly developed by the state and central governments.

SPV in which the state government has a majority stake will have the right to receive part of the rent from developed industrial sites and can use it to continue the expansion of the textile industry in the region by expanding the PM MITRA park. , providing skills development initiatives and other welfare measures for workers.

The Indian government will also provide a fund of Rs300cr for each PM MITRA fleet to incentivize manufacturing units to establish themselves. This will be known as Competitiveness Incentive Support (CIS) and will be paid up to 3% of the turnover of a newly created unit in the PM MITRA park. Such support is crucial for a new project being established which has not been able to balance and needs support until it can increase production and be able to establish its viability.

Convergence with other central government and state government programs is available based on their eligibility under those program guidelines. This will strengthen the competitiveness of the textile industry by helping it achieve economies of scale and create enormous employment opportunities for millions of people. Taking advantage of economies of scale, the program will help Indian companies become global champions.

The Union Cabinet approved the creation of MITRA parks at 7 p.m., as announced in the Union budget for 2021-2022. PM MITRA is inspired by the 5F vision of the Honorable Prime Minister. The “5F” formula includes – From farm to fiber; fiber at the plant; fashionable factory; fashion abroad. This integrated vision will help promote the growth of the textile sector in the economy. No other competing nation has a complete textile ecosystem like us. India is strong in the five F.

The 7 Mega Integrated Textile Region and Apparel Parks (PM MITRA) will be set up at Greenfield / Brownfield sites located in different volunteer states. Proposals from state governments with immediate availability of contiguous and unencumbered plots of over 1,000 acres as well as other textile-related facilities and ecosystems are welcome.

Maximum Development Capital Support (DCS) of Rs500cr to all Greenfield PM MITRA and a maximum of Rs200cr to Brownfield PM MITRA will be provided for common infrastructure development (@ 30% of project cost) and Rs300cr of support Competitiveness (CIS) will also be provided to each PM MITRA park for the early establishment of textile manufacturing units in PM MITRA. State government support will include the provision of 1,000 acres of land for the development of a world-class industrial zone.

For a Greenfield PM MITRA park, the GOI Development Capital Support will be 30% of the cost of the project, with a ceiling of Rs500 Cr. For contaminated sites, after appraisal, development capital support @ 30% of the project cost balancing infrastructure and other support facilities to be developed and limited to a limit of Rs. 200cr. This is a form of sustainability gap financing to make the project attractive for private sector participation.

PM MITRA will develop 50% of the area for pure manufacturing activity, 20% of the area for utilities and 10% of the area for business development.

The PM MITRA fleet will be developed by a special purpose vehicle that will be owned by the state government and the government of India under a public-private partnership (PPP). The Client will not only develop the Industrial Park, but will also maintain it during the concession period. The selection of this master developer will be made on the basis of objective criteria jointly developed by the state and central governments.

SPV in which the state government has a majority stake will have the right to receive part of the rent from developed industrial sites and can use it to continue the expansion of the textile industry in the region by expanding the PM MITRA park. , providing skills development initiatives and other welfare measures for workers.

The Indian government will also provide a fund of Rs300cr for each PM MITRA fleet to incentivize manufacturing units to establish themselves. This will be known as Competitiveness Incentive Support (CIS) and will be paid up to 3% of the turnover of a newly created unit in the PM MITRA park. Such support is crucial for a new project being established which has not been able to balance and needs support until it can increase production and be able to establish its viability.

Convergence with other central government and state government programs is available based on their eligibility as per the guidelines of those programs. This will strengthen the competitiveness of the textile industry by helping it achieve economies of scale and create enormous employment opportunities for millions of people. Taking advantage of economies of scale, the program will help Indian companies become global champions.

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