Indian govt approves setting up of 7 mega textile regions

The 7 parks will be setup at Greenfield/Brownfield sites located in different willing states. "Proposals of state governments having ready availability of contiguous and encumbrance-free land parcel of over 1,000 acres along with other textiles related facilities and ecosystem are welcome. Around 10 states have already shown interest," textiles minister Piyush Goyal said while addressing a press conference today.

"Maximum Development Capital Support (DCS) of ₹500 crore to all Greenfield PM MITRA and a maximum of ₹200 crore to Brownfield PM MITRA will be provided for development of common infrastructure (at 30 per cent of the project cost) and ₹300 crore of Competitiveness Incentive Support (CIS) will also be provided to each PM MITRA park for early establishment of textiles manufacturing units in PM MITRA. State government supports will include provision of 1,000-acre land for development of a world class industrial estate," Goyal added.

The parks will feature core infrastructure – Incubation centre and plug & play facility, developed factory sites, roads, power, water and wastewater system, common processing house and CETP and other related facilities e.g. design centre, testing centres etc; and support infrastructure – workers’ hostels and housing, logistics park, warehousing, medical, training and skill development facilities, an official release said.

PM MITRA will develop 50 per cent area for pure manufacturing activity, 20 per cent area for utilities, and 10 per cent of area for commercial development, the release added.

The parks will be developed by a Special Purpose Vehicle which will be owned by state government and government of India in a Public Private Partnership (PPP) Mode. The Master Developer will not only develop the industrial park but also maintain it during the concession period. Selection of this Master Developer will happen based on objective criteria developed jointly by state and central governments.

SPV in which 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 textiles industry in the area by expanding the PM MITRA Park, providing skill development initiatives and other welfare measures for workers.

Government of India will also provide a fund of ₹300 crore for each PM MITRA park to incentivise manufacturing units to get established. This will be known as Competitiveness Incentive Support (CIS) and will be paid up to 3 per cent of turnover of a newly established unit in PM MITRA park.

Convergence with other central government and state government schemes is available as per their eligibility under the guidelines of those schemes. This will enhance the competitiveness of the textiles industry, by helping it in achieving economies of scale and will create huge job opportunities for millions of people.

Fibre2Fashion News Desk (KD)