The government of India announced seven new PM Mega Integrated Textile Regions and Apparel (PM Mitra) Parks for the textile industry. The complexes will be located in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra.
Inspired by the 5F (farm to fiber to factory to fashion to foreign) vision of Prime Minister Narendra Modi, the announcement marks a significant step forward in realizing the government’s vision of making India a global hub for textile manufacturing and exports. These projects are expected to enhance the textiles industry’s competitiveness by helping it achieve economies of scale and attract global players to manufacture in India.
These seven sites were chosen out of 18 proposals received from 13 states. Eligible states were evaluated using a challenge method based on objective criteria, considering various factors such as connectivity, existing ecosystem, textile/industry policy, infrastructure and utility services. PM Gati Shakti, national plan master for multi-modal connectivity, was also used for validation.
PM Mitra Parks will help create a world-class industrial infrastructure that would attract large-scale investment, including foreign direct investment (FDI) and encourage innovation and job creation within the sector.
The Ministry of Textiles will oversee the execution of these projects. A special purpose vehicle (SPV)-owned by the center 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 up to 5 billion rupees (roughly $60.5 million) per park to the park SPV. Competitive incentive support (CIS) of up to 3 billion rupees (approximately $36.3 million) per park to the units in PM Mitra Park will incentivize speedy implementation. Convergence with other GOI schemes will also be facilitated to ensure additional incentives to the master developer and investor units.
State governments will provide a contiguous and encumbrance-free land parcel of at least 1,000 acres of land. They will also facilitate the provision of all utilities, reliable power supply and water availability, a wastewater disposal system, an effective single window clearance, as well as a conducive and stable industrial/textile policy.
The parks will offer infrastructure, plug-and-play facilities, and training and research facilities for the industry.
PM Mitra Parks represents a unique model where the center and state governments work together to increase investment, promote innovation, create job opportunities and make India a global nerve center for textile manufacturing and exports. The government said the textile parks will be powered by nearly 700 billion rupees (about $8.47 billion) in investment and create about 2 million jobs.